Reliance on investment should be reduced, says IMF (3)

Zhang Changchun, director of the Institute of Investment at the National Development and Reform Commission, said China needs to cut the investment share of GDP.

He added China's high investment levels have their roots in the country's unusually high savings rate, while the reason behind the high savings rate remains the country's insufficient social welfare system.

"If China's economic growth slowed to 5 to 6 percent, that doesn't necessarily mean that the investment ratio will decline correspondingly, or the consumption ratio decline more," he said.

But recent investment levels are unsustainable, he noted.

lanlan@chinadaily.com.cn

We recommend: A Decade of Fastest Development Eastern Boom Lightens Western Gloom Oct. data released, inflation slows Gold collection issued to mark 'Year of Snake' China: A Fast-growing Force in IPR 13th Int'l Automobile Industry Exhibition China Int'l Industry Fair opens in Shanghai Caofeidian coal wharf put into use Canton Fair wraps up on Sunday