Commentary: China carries out systematic reforms to tackle economic uncertainty

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Commentary: China carries out systematic reforms to tackle economic uncertainty

By Sun Ruijun (Xinhua) 18:33, October 24, 2013

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BEIJING, Oct. 24 -- In the face of various economic uncertainties at home and abroad, the new Chinese government has implemented systematic reforms to boost and upgrade the world's second largest economy.

Just as the Financial Times, a British newspaper, put it in an editorial, the Chinese economy is a "complex, changing" process with high variabilities, such as transformation of the system, interests restructuring and price adjustment.

In a bid to keep the economy on the right track for further growth, the Chinese government has put forward and carried out a series of effective ideas to deepen the country's economic reform.

Foreign observers also note the complexity of the Chinese economy, which they say is not a simple system and has difficulty readjusting and reforming.

From its measures to deal with some banks' cash shortage, observers have found that the Chinese government has its own judgement and foresight in economic adjustment and control.

Premier Li Keqiang said recently that due to the mounting pressure of the economic downturn and the difficulty in raising fiscal revenues, the Chinese government should be innovative with macro-control measures.

In order to ensure steady growth, China has managed to prevent its deficit from expanding and its monetary policy from fluctuating. It has also properly handled market liquidity and kept prices within a reasonable rage.

Meanwhile, the government also unveiled a series of policies transforming its function and fostering emerging industries to further stabilize the market and shore up social confidence, especially in such fields as railway investing and financing, the health industry and financial reform.

It should be noted that China has made headway in industrialization and urbanization. With great space for regional development and huge potential for domestic demand, it will be of more benefit to China to continue to deepen reforms.

As for Chinese policymakers, they will pay much attention to improving the quality and efficiency of the economy and ensuring sustainable development.

Overseas scholars also keep a close eye on recent hot topics in China, including the country's pension system, real estate market, and an excess capacity in production, from which they find that the government has taken precautions to cope with some long-term issues.

Citing an analysis from T. Rowe Price, a global investment management firm, U.S. News & World Report said in an article last month that despite some uncertainties, China's long-planned evolution to a consumer-driven economy presents a "unique opportunity for investors who have the resources to do extensive research and the willingness to take a long-term view."

"We're most likely not going to wake up one morning and see a profoundly different China. But we will look back in five years and see that things have really changed," said the article.

China is making efforts to adjust its economic governance to find an effective solution to some structural problems, which will benefit the economic development not only at present, but also in the future.