‘Opening up is China’s greatest reform’: noted economist calls for new market standards
- Sound rule of law and modern market economy will drive China’s continued economic prosperity rather than frequent policy shifts, forum hears
“External demand is particularly important for China since the country is not able to consume the excessive supply capacity on its own,” Wu Xiaoqiu, director of the National Institute of Financial Research at Renmin University, told a forum in Hong Kong on Saturday.
Calling on Beijing to further open up its markets, Wu said: “Don’t think China can rely on its own domestic consumption because its economy is growing bigger.
“Though internal demand is important, it cannot replace the external, which means [we need] not only an expansion in total demand but, more importantly, to provide new [market] standards.”
China’s market still does not fully operate in line with international standards in various areas, and must further deepen its integration with the global market, Wu told the forum.
“Many people underestimate the importance of external markets as they fail to recognise that opening up is crucial to China’s future; in fact, opening up is China’s greatest reform.”
The Chinese economy posted 5 per cent growth in the first six months this year, effectively driven by exports.