A blueprint for more reforms

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By Fu Jing (China Daily)
Updated: 2009-10-19 08:52

Post-crisis ideas

Since the middle of this year, when signs of an economy recovery began appearing in China and other countries, Chi has led a panel of economists to think about the country's reform in the post-crisis era.

Their ideas were included in the book, China's Reform in the Shadow of the Global Financial Crisis, which was published by Beijing-based Foreign Language Press.

"I am still stressing the urgency of reform in the book," Chi said. "That's a lasting driver for China, which is on the way to a market economy."

Chi said demand for Chinese output is decreasing globally and at home. China wants to move to the upper end of the consumption chain after three decades of development, he said.

In the book, Chi said he believes that China faces tremendous challenges to transform its pattern of economic development.

Three decades of economic reform have led China to a new stage of development in terms of its society and economy. With the country advancing more rapidly, many problems and challenges have emerged, Chi said.

Chinese leaders should rethink the country's reform package amid changing global and domestic situations and take steps to move toward a market-oriented economy by 2020, the senior political advisor said.

Reform measures should speed up urbanization, break down industry monopolies by the State, deregulate energy, offer equal social welfare for rural residents and urban dwellers, and improve the government's efficiency, he said.

Radical measures

"Our top leaders should take quicker and radical measures in these endeavors within the coming two or three years. By doing so, China can do a better job in post-crisis management, as well," Chi said.

"Looking at the goal of realizing a market economy by 2020, we cannot afford to lose the time window of the next two or three years," he said.

Chi, who is also a member of the Chinese People's Political Consultative Conference, the country's highest political advisory body, praised the government's swift response to the current financial crisis.

"There is no doubt China will soon overtake Japan to become the world's biggest economy after the United States. But we should be realistic about our strengths," Chi said.

It might take about two decades for China to become an economic power "if all goes smoothly", he said.

Chi also said the government should step up efforts to encourage overseas investment and trade, which should go hand in hand with the country's efforts to internationalize its currency.

"The most important thing is that there is consensus among the leadership to reform, and they are acting now," Chi said. "What I am advocating is to carry on the momentum."

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