International attention on future reform agenda for China
Updated: 2013-11-07 16:22
On market-oriented reforms
"The Chinese government should take more steps to let private capital get involved in infrastructure construction and investment,
"Leading private companies involved in railways, healthcare and other industries will raise fair-market competition and help change the advantageous operational environment of the SOEs."
Michal Krol, research associate at the European Center for International Political Economy in Brussels
While there is no doubt China has set stiff targets, its eventual success depends on how much leeway policymakers allow, and how they plan to streamline market liberalization.
"State-owned and state-controlled enterprises dominate the sectors with the highest potential for service productivity and employment growth. Liberalization of transport, finance, telecommunication, healthcare and business sectors by allowing more foreign firms is the most effective way to foster reforms.".
Echoing Krol's views isDavid Fouquet, director of the Europe-Asia Research Network in Brussels.
"This implies a reconciling of the roles of large state-owned enterprises and what might be termed the true fundamental economy, as well as the provision of social and life services to the majority of the population."
Louis Kuijs and Xiaocun Tiffany Qiu, economists with The Royal Bank of Scotland
we expect the leadership to present a statement with objectives and directions of reforms to rebalance the pattern of growth more toward domestic demand, consumption and services - and upgrading the industrial structure and moving up the value chain.
The broad principles are likely to be about market orientation, opening-up to and integration with the world economy, (improving the quality of) urbanization, innovation and "changing the government's management mode" (the role of the government in the economy).[more]
Asia-focused lenderStandard Chartered Bankin a recent research report indicated that a significant reform plan aimed at boosting economic growth would be released at the third plenum meeting.
"We anticipate that the Chinese government would consider more steps to attract private capital for infrastructure construction and investment. The participation of private companies in railways, healthcare and other sectors will lead to fair market competition and end the monopoly enjoyed by SOEs," the bank says.
Klaus Rohland, World Bank country director for China
Reforms are needed to strengthen the foundations for a market-based economy by redefining the role of government, reforming and restructuring State-owned enterprises and banks, promoting competition, and deepening reforms in the land, labor, and financial markets.