CRI听力:World Bank Advices China to Complete Market-economy Transition

World Bank President Robert Zoellick has outlined China's risks and development opportunities as well as the recommendable growth model for the Chinese economy in the next two decades.

"Currently China relies on a mix of market and non-market measures to shape incentives for producers and consumers. There is a lack of clarity in distinguishing the roles of the government, state enterprises and the private sector. China needs to resolve these issues. Priority should be given to protect farmers' rights over agricultural land, expanding land legislation and rental rights. The Chinese economy of the future needs to rely more on markets and the private sector."

The report warned of challenges China would face over the next 20 years, including the risk of a hard landing in the short term, an ageing and shrinking workforce, rising inequality, environmental stress and external imbalances.

It also gave suggestions for China to strengthen its private sector and open its markets in order to foster competition and innovation, and ensure equality of opportunity.

Chinese Finance Minister Xie Xuren has echoed Zoellick's remarks stressing the importance of a long-term system for economic transition.

"We should regard the expansion of the domestic demand as the strategic base point of the structural reforms. A long-term system must be established so as to accelerate the transition of the economy, relying on a more balanced stimulation by consumption, investment and export."

Meanwhile, Zoellick argued that fast and stable economic growth would help China avoid a hard landing and possible economic downturn.

"I believe China will have a soft landing so I don't see an economic crisis today. And if anything, as I assess the world economy, I think China will likely be an ongoing source of growth. The potential crises I see are elsewhere."

The report also advocated Chinese policymakers to shift from focusing only on the amount of growth to focusing on the quality of growth as well.

The report on the theme of "China 2030: Building a Modern, Harmonious, and Creative High-Income Society" was issued by the World Bank and the Development Research Center of the State Council in Beijing.

For CRI, I am Wei Tong.