China Preoccupied to Maintain its Economic Growth

China’s   rapid growth is due by allowing once-suppressed private entrepreneurs to prosper.The socialist system seems to be more advantage , like Prime Minister Wen Jiabao said : “enable us to make decisions efficiently, organize effectively and concentrate resources to accomplish large undertakings.”

Now,  it is often China’s state-run companies that are on the march.The proportion of industrial production by companies controlled by the Chinese state edged up last year fact recognized by the World Bank.

After becoming the second economic power in the world the Chinese government is  concerned to maintain this position.

Yao Yang, a Peking University professor who heads the China Center for Economic Research said : “The problem is that the reforms of the first 20 years, from 1978 to the end of the ’90s, actually did not touch on the power of the government.So after the other reforms were finished, you actually find the government is expanding, because there is no check and balance on its power.”

The World Bank’s senior economist in Beijing, Louis Kuijs, said the state sector’s unusually rapid growth will most likely moderate with the ending of the government’s stimulus spending.

Experts that analyzed China’s economy had  two questions. One is how much longer state control of vast areas of the economy will generate that growth.

The other is whether, should that strategy stop working, China will be able to change it.

Short URL: http://newskf.com/?p=1098

Posted by M.P.Bogdan on Aug 30 2010. Filed under Featured News, Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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