Latest News:  

English>>Business

Overcapacity troubles Chinese economy, reform needed (4)

(Xinhua)

08:45, April 15, 2013

STRUCTURAL REFORM

The overcapacity problem may be solved through structural reform that boosts innovation and quality-oriented economic growth.

Li said the way local government performance is evaluated should be changed to fit the market and facilitate fair competition, as well as reduce administrative meddling.

Local governments should be banned from using direct stimulative measures to encourage investment, he said.

He also called for more transparent and stricter approval for land projects, leaving decision and risk for enterprisess to cope with.

Financial and taxation reform needs further implementation, in order to act as an efficient tool to restrain local investment while reducing pressure on the expenditures of local governments.

Necessary taxes for resources are expected to cover more products and sectors with high energy consumption, Li said.

Governments at all levels should create a healthy environment that allows the market to maintain itself and weed out unsustainable capacity, he said.

Li said less-controlled market operation and stricter approval for key projects can contribute to realizing greater market competition.

"More open market access, a stricter bankruptcy system and a smoother market pricing mechanism can help give full play to market competition," Feng added.

【1】 【2】 【3】 【4】



We Recommend:

Apple CEO apologizes over China warranties

Nokia closes its flagship store in Shanghai

The 10 most expensive houses in China

$52 million super luxury yacht

The many stories behind Apple's bite on its logo

Looking abroad for a new home

Email|Print|Comments(Editor:ChenLidan、Ye Xin)

Related Reading

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Weekly review of military photos

  2. Naval escort taskforce starts visit to Morocco

  3. Lightning scenery in Singapore

  4. H7N9 virus still not spread by people

  5. Explosion hits chemical factory in C. China

  6. Shops in scenic town back in business

  7. 32nd Hong Kong Film Awards ceremony

  8. Justin Bieber holds concert in Netherlands

  9. Speeches and cream on foreign tour

  10. 10th Hong Kong Electronics Fair kicks off

Most Popular

Opinions

  1. Survivors say SARS lesson mustn't be forgotten
  2. Chinese takeover not threat: German research
  3. Is strong trade data too good to be true?
  4. Hit film triggers discussion on giving birth abroad
  5. Philanthropists donate less as economy slows
  6. New media trend for Chinese language study in US
  7. Follow-up work needed for yuan's going global
  8. Boao Forum for Asia makes China, world closer
  9. Devoted to a life defending nation
  10. Errors in urbanization must be avoided

What’s happening in China

Bird flu takes toll on poultry industry

  1. 3 dead, 7 injured in brewery collapse
  2. Beijing confirms taxi fares to rise
  3. Shanghai seizes 6,000 tonnes of foreign waste
  4. Mother's labor camp lawsuit court hearing begins
  5. War victims' monument targeted by developer