At a summit held on Feb. 15, Chinese economist Wu Jinglian urged China to speed up its structural reform. He also affirmed China’s achievements in eliminating overcapacity, decreasing inventory and deleveraging. Wu made the remarks during a keynote speech at the 2017 meeting of the Chinese Economists 50 Forum.

The renowned Chinese economist noted that despite several areas of economic progress, China still has a number of problems to deal with. The leverage ratio keeps growing, for example, which leads to higher systematic financial risks.

As for what caused this situation, Wu stated that inefficient structural reform prevents the market from playing a decisive role in the distribution of resources, thus making regulation dependent on administrative methods. The economist suggested that authorities make more effort to carry out sensible reform, in order to lay a solid foundation for the effective redistribution of resources.