OPINION> Commentary
Toward new reforms
(China Daily)
Updated: 2008-07-11 07:37

The State Council called for strengthened efforts to deepen China's economic reforms at an executive meeting on Wednesday. Such a national drive to face and fix deep-seated problems through reforms is just the right way to observe the 30th anniversary of China's reform and opening up.

China has made remarkable achievements in social and economic development over the past three decades by introducing many market-oriented reforms and opening itself increasingly wider to the outside world.

For instance, the size of the Chinese economy has increased by more than 10 times since 1978, up by almost 10 percent yearly, to rank the fourth largest in the world. Meanwhile, the number of Chinese people living below the poverty line has shrunk by more than 200 million, accounting for two-thirds of the world' progress in poverty reduction.

However, while the country is advancing steadily to build a moderately well-off society, the authorities are keenly aware that the task of reform and development remains arduous.

To continue its long-term growth story, China has to rapidly shift away from the extensive development pattern it followed in the past toward an energy-saving, environment-friendly and sustainable one.

That means the country needs to not only undertake painful structural reforms to eliminate energy-consuming, polluting and low value-added production in different sectors but also boost innovation and investment needed for greener economic growth.

The government has made it a top priority to cut energy intensity by 20 percent and key pollutants by 10 percent between 2006 and 2010. Though the country still falls behind its schedule to meet energy and environmental goals, policymakers are stepping up efforts to attain them.

Admittedly, the country's soaring inflation and weakening external demand have made it difficult to start reforms like introducing an energy pricing mechanism that can reflect the market supply and demand. But as the economy increasingly tests the limits of resources and environment in recent years, the country can no longer afford to postpone those inevitable reforms.

The State Council meeting called on central and local authorities to map out their general reform plans and work for breakthroughs in key reforms. Such a guideline on the deepening of economic system reforms can help policymakers overcome short-term difficulties to pursue long-term goals.

(China Daily 07/11/2008 page8)