Measures must aim to stimulate demand
Print Edition
CHINA will adopt relatively expansive measures with regards to structural reforms to avoid adding to the pressure on economic growth, its finance minister said yesterday.
The fiscal deficit is expected to widen this year and policy-makers will choose to implement reforms that can stimulate demand while adjusting structural imbalances, Lou Jiwei told the G20 High-Level Seminar on Structural Reform.
The measures will include deregulation to improve the business environment, targeted tax cuts to support industry, liberating the labor market to encourage employment, and accelerating urbanization to absorb migrant workers as urban residents, he said.
“Special attention should be paid to structural reforms, because some reform measures are tightening ones, some are expansive, some are short-term, and some take a long time to show their effects,” he said.
“In difficult economic times, we must choose expansive measures,” he said.
Lou said that a key task for this year is to allow companies greater freedom by considering changes to the labor law.
Restrictions on business have hurt productivity, which in turn is bad for employees, he said.
The government will offer fiscal support to people who lose their jobs as the country pursues its program of eliminating outdated and surplus production capacity, he said.
The central government in December identified overcapacity and the closure of debt-ridden firms as one of its key policy priorities for this year, with a goal to eradicate 100 to 150 million tons of low-end steel capacity and 500 million tons of coal production.
The Organization for Economic Cooperation Development said China is leading world’s emerging markets in making reforms and encouraging growth.
“The proportion of measures taken relative to the measures proposed in China is reasonably high among emerging markets,” said Alain de Serres, counsellor to the chief economist of the OECD.
“Some of the measures are forward-looking and effective, however there are still others that may not have as much impact,” he said.
In its annual interim report, Going for Growth 2016, the OECD said China could boost its market economy, improve labor quality, and strike a better balance between liberalization and regulation in financial markets to unlock sustained economic momentum.
“The financial market plays a key role in allowing firms to enter as well as exit,” Serres said, adding that it is important to enhance risk pricing by financial markets through the removal of implicit state guarantees, and by ensuring access to credit for a wider range of borrowers, in particular small- and medium-sized enterprises.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
