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China Daily Website

China's new reform drive to benefit world

Updated: 2013-11-12 16:41
( Xinhua)

China model

Some experts say the upgraded "China model" after the transformation of government functions will continue to play an important role in the Chinese and world economies.

Argentine economist Matias Carugati said the transformation of government functions since the start of the reform and opening-up era had brought an enormous demographic and resources bonus.

Carugati said he expected the upcoming reform in government functions to bring new investment opportunities and create a better institutional environment, which would add new space for the growth of the world economy.

Han Jae-jin, a researcher with South Korea's Hyundai Research Institute, said the implementation of the economic model driven by domestic demand would help stabilize the national economy, stimulate foreign investment and push forward the neighboring and world economies.

Yakov Berger, an Chinese studies expert at Russia's Far East Institute, said the greatness of the "China model" was effectively combining state regulation and market adjustment and keeping a dynamic balance between them.

This model would continue to provide a guarantee for China's development and inject dynamism into the world economy, Berger said.

In addition, China and the United States, two of the world's big nations, are important trade partners with economic complementarity. The reform and development of China will bring America unexpected important opportunities.

Former US Secretary of the Treasury Henry Paulson said the third plenum would set the tone for the adjustment of China's economic structure in the future.

He said the world economy would gain new opportunities with China's implementation of measures, such as promoting the market's initiative function, increasing opportunities for small and medium-sized enterprises, upgrading efficiency in capital distribution and improving the balance between consumption and investment.

Douglas Paal, vice president for studies at the Carnegie Endowment for International Peace, told Xinhua at a forum Monday the prospect for a reform agenda in the financial sector was greatest as reformers in financial circles "understand the needs China faces."

"Freeing up interest rates, deepening financial markets, regulating the informal banking sector, and introducing competition, would all make sense as partial but important steps toward long-term capital account convertibility and banking efficiency," Paal wrote in an article published on the think tank's website.

"This may offer openings for foreign financial firms to participate more deeply in the Chinese economy," he said.

The inclusive and comprehensive development of China has benefited both itself and the world. And only in such a win-win way, can China realize rapid and sound development in the long term.

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