From Overseas Press
China lacks real economic growth strategy
(chinadaily.com.cn)
Updated: 2010-05-24 17:09
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China isn't yet an economic giant with a viable growth strategy, said an article in Japanese Sentaku magazine on May 24.
Although "China's GDP grew 11.9 percent over the same period the year before," most of the growth came from investments from government and state-owned enterprises, and "whether the investments will be effective to bring about economic prosperity" remains to be seen.
It elaborates that the construction boom prevails throughout China for railways, subways, expressways, airports, power stations, factories, buildings and condominiums. However, some of these projects may not bring tangible, long-term economic benefits, because China "seems concerned mainly with creating employment opportunities for construction workers and increasing the demand for raw materials — not in how best to use newly built infrastructure to revitalize the national economy."
Meanwhile, China's local party leaders strive to spend money on a wide range of projects to "prove their competence is to achieve economic growth in their respective regions. The wasteful infrastructure and buildings that have emerged in their regions are the result of competition to seek promotion." This behavior complicated the economic policy of China, the article said.