Deepen reform to boost economy

The problem of China's current economic operation is the coincidence of the global financial crisis and China's periodic adjustment, which is the first test facing China after its entry into the World Trade Organization (WTO). With relatively favorable conditions, China has the potential to get out of the economic downturn first and turn the crisis into an opportunity. In order to fulfill the possibility, we must continue to deepen the reform and make major breakthrough in further reforms.

First, the 10 measures for boosting domestic consumption need to be implemented in the spirit of reform; and, we should persist with the policy of market-oriented reform steadfastly and spur market vitality through leveraging government's stimulus package.

We could not turn from "market omnipotence" to "State omnipotence". Government as a "visible hand" and the "invisible hand" of market should coordinate closely. First of all, the source of the 4 trillion yuan ($586 billion) stimulus package should be guaranteed. Secondly, the investment priority should be elaborately calculated in a bid to both expand demand and set the stage for China's sustainable development in the future, rather than bringing new obstacles. More efforts are needed to promote democratic and scientific decision-making and adhere to making government affairs public. We should escape the trap of low efficiency of government investment. Thirdly, the huge stimulus plan should boost more private investment. If the 4 trillion yuan package is monopolized by State-owned enterprises with the support from the government, then, as usual, it will result in a return to our old system, which cannot achieve the end of stimulating demand and fueling economic growth. Therefore, advertised biddings should be applied to the newly-approved projects, offering fair competition environment for all enterprises of different ownership.