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Business / Economy

A new normal Chinese economy requires decisive role of market

(Xinhua) Updated: 2015-01-27 10:02

BEIJING - Continued transformation of the economy and a decisive role for the market are needed as China enters a period of slower growth, the head of the State Council's Development Research Center said.

"The government should reduce intervention of industry structural reform and focus on creating an innovative environment for economic transformation to increase efficiency and social fairness," said Li Wei.

As China's economy shifts from fast-paced growth to slower, more quality growth, the priority of the government lies in ensuring easier access and more efficiency for the market while establishing strict quality supervision and providing a social safety net, he said.

Li believes an effective government macro-control should prioritize growth quality, foster risk awareness of the economy, tackle overcapacity and seek new sources of growth.

Instead of high speed and excessive reliance on investment, export and resources, the world's second largest economy is striving to shift gears to adapt to the "new normal" of slower speed, higher quality and more innovation.

Chinese Premier Li Keqiang vowed last week at World Economic Forum (WEF) in Davos that China will continue to push ahead with its reform in key areas in 2015, with the priority being properly handling the relationship between the government and the market.

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