Communique encouraging: US expert
Updated: 2013-11-13 17:38
NEW YORK -- The communique issued after the Third Plenary Session of the 18th CPC Central Committee is encouraging for its hard push on reforms, said a senior fellow at Yale University's Institute of Global Affairs on Tuesday.
In a phone interview with Xinhua, Stephen Roach, also former chairman of Morgan Stanley Asia, expected specific details indicating concrete proposals and action.
Noting the shift in language from the market previously playing a "basic role" to now playing a "decisive role", Roach said the choice of words is significant.
"I think the statement to set up a central leading team for deepening reform is indicative of a strong commitment," he said.
"In my hope for China, these are pieces of a bigger puzzle which really shapes the growth model much more towards a balanced economy that draws support not just from export and investment, but increasingly from internal private consumption," Roach said.
He added that if the economic transformation plays out, the development of Chinese consumption could be one of the most important developments for the world economy too, including the United States.
It's a great opportunity for countries that need new sources of growth, like the United States, to provide both goods and services specifically for Chinese consumers.
Moreover, Roach believes many multinational companies have well-established business in China and would like to expand.
"I think the development of Chinese internal private consumption market would give them confidence," he said.
Regarding the urban-rural relationship issue, he said it has been a central feature in China's development strategy since 1980 and will remain important, probably for the next 20 years.
Newly urbanized citizens coming from the countryside are required to become more active consumers in the Chinese society.
With the land reform issue drawing much attention from foreign media, he said there has been hope that China's new leadership could address this issue and focus more on urbanization.
It's critically important that China gives farmers a fair stake in the next phase of China's economic development, so land reform is essential.
Looking forward, Roach suggested that the government needs to be more comprehensive in addressing the social security system, especially when it comes to funding the system and retirement programs.
He added that the government needs to make sure that not only do Chinese people have the opportunity to expand their income, but also the incentive to spend it.
The strategy needs to focus again on the changing behavior of Chinese families moving towards confidence in a secure financial future.
"You could read between the lines to see some recognition of that in the statement after the meeting and that needs to be developed further by the new leadership," Roach said.