“If the country’s economic transition works, the benefits that the Chinese economy will bring to the world will be great,” Osvaldo Rosales, former director of international trade at the Economic Commission for Latin America and the Caribbean, said in a recent interview with Xinhua.

Chinese Premier Li Keqiang speaks in a video message to the G20 Finance Ministers and Central Bank Governors Meeting that opened in Shanghai, east China, Feb. 26, 2016. [Xinhua]
Chinese Premier Li Keqiang speaks in a video message to the G20 Finance Ministers and Central Bank Governors Meeting that opened in Shanghai, east China, Feb. 26, 2016. [Xinhua]
China’s decision-makers and advisors are meeting in Beijing this week for the “Two Sessions” — important annual conferences of the National People’s Congress and the Chinese People’s Political Consultative Conference (CPPCC).

Outlining the plan for this year as well as a five-year development plan, Premier Li Keqiang said in a government work report on Saturday that the country is expecting a growth rate of 6.5 to 7 percent for 2016.

China has set a goal of doubling its per capita gross domestic product by 2020 from its 2010 level. To achieve that, it needs an average annual growth of about 6.5 percent over the next five years.
Rosales said it is preferable for China to grow at 6.5 percent a year rather than 10 percent to ensure more balanced growth and allow more room for consumption and services to grow.

“There is no need to insist on 10 percent growth, which would accentuate economic, social and environmental inequalities. It could be very bad news for China and the global economy,” he said.
“The next five years will be crucial to judge the effectiveness of China’s current batch of reforms,” he added.

Chinese Premier Li Keqiang said his government is aiming to create 10 million jobs in cities this year, mainly in the services sector. New policies outlined point to greater spending on technology and innovation.

Ignacio Martinez Cortes, a researcher at Mexico’s National Autonomous University, noted China’s new focus on promoting the services sector.
It is “part of its strategy to improve wages, create jobs and enable the purchase of goods and services in the domestic market,” he said.

Mexican China expert Eduardo Tzili Apango, author of many research papers on the Asian giant, said the news from China is positive for global markets as the country tries to shift its main economic drivers from exports and investment to domestic consumption as well as step up environmental protection.

The Chinese government is taking appropriate steps to address the lack of sustainability in its previous development model, he said.

Given China’s economic weight, any major changes in the country will now influence much of the rest of the world, Tzili said.

China’s integration into the global economy benefits the world as it brings more dynamism, he said, adding that the country is increasingly an important pillar of the international financial system.
“China’s influence in the world is greater. There’s no doubt about that,” Tzili said. Enditem

Source: Xinhua

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