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Experts foresee reform of hukou, capital flow

Updated: 2013-11-09 09:13
( China Daily)

What sectors would experience massive reform after the meeting and why?

Experts foresee reform of hukou, capital flow

The authorities are going to put forward reform guidelines, rather than concrete measures, during the session. Just as President Xi Jinping put it many times previously, the reform guidelines would be comprehensive.

The reform will not only aim to boost economic growth, but also restructure political and social relations.

Along with economic development, lots of conflicts caused by interest distribution have appeared, which requires the ruling Party to improve the current economic, political and social relations.

Most of the current policies, especially the reform and opening-up policies made in 1978 at the Third Plenary Session of the 11th CPC Central Committee, will be kept consistent.

What kind of measures will be taken in political and administration reform?

The government will continue to transform its function to provide better services to the public and the market.

The government has to increase its capability by setting up a mechanism to appraise the work of the public sector.

Whether the fruits of economic development could benefit the people is the key question to reform.

All people, no matter whether they are from rural or urban areas, should enjoy equal rights in basic social services, including pensions, healthcare and education.

What would be the biggest challenges and risks for carrying out reforms?

The reform will definitely face challenges from interest groups who have already enjoyed much privilege under the current political system, because the reform will constrain their interests.

Social conflicts that have frequently challenged local governments are also likely to pose threats to the reform process, because the governments tend to take conservative measures to cope with emergencies.

What would be your most expected reform? Why?

Experts foresee reform of hukou, capital flow

The Chinese economy should require additional impetuses to supplement the existing driving forces, such as investment, exports and consumption. The new "three horses of the troika" hauling China are in-depth urbanization, consumption upgrading and the internationalization of the renminbi.

In contrast to previous urbanization processes when migrant workers failed to accommodate themselves into the city, in-depth urbanization should aim to address key issues including the reform of the hukou system, the supply of residential apartments as well as an increase in purchasing power. The aim is to create a genuine "middle class", indicating the overriding goal of the reform is to create an urbanized population.

The upgrade of consumption ranges from the branding of traditional merchants to a wider coverage of healthcare services. It also includes technological drivers that fuel new types of purchasing, such as the burgeoning Internet finance and the fast takeoff of the 4G mobile network.

The internationalization of the renminbi indicates that China will move from lower-end exports such as shoes and socks, to exporting projects, services and even the currency. Internationalization of the renminbi will help the country achieve a comprehensive economic upgrade and provide sustained growth momentum. When the annual GDP per capita doubles to $13,000 from the current $6,500, it suggests China will have avoided the middle-income trap.