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China's economic transformation is "world-historical": expert

Submit Time:02-12-2015 | | Zoom In | Zoom Out

China’s economic transformation is "world-historical" and the world has a great stake in its success, said Dan Steinbock, Research Director of International Business at the U.S. India, China & America Institute.

In a recent exclusive interview with Xinhuanet, Steinbock said China’s 13th Five-Year Plan "involves great opportunities" and regarded the economic transformation as the most critical task for China to undertake.

The plan was proposed at the Fifth Plenary Session of the 18th Communist Party of China Central Committee on Oct. 29.

The economic transformation, in his words, refers to "rebalancing the Chinese economy from growth fueled by investment and net exports to growth driven by consumption and innovation."

Tracing the history of transformations of other economies, he added, "the importance of the Chinese transformation is world-historical, due to its sheer magnitude."

"When the transition from industry to services intensified in the U.S. after WWII, its population represented barely 6 percent of the world total. In the early 2010s, when China began its transition, it accounted for almost 20 percent of the total. The world has a great stake in China’s success," Steinbock said.

Steinbock also expressed his belief in the determination of the Chinese leadership to implement reforms and overcome obstacles in the development path.

"The launch of the 'Four Comprehensives,' the Belt and Road Initiative and several other new policy stances indicate that the coming changes will be broad and deep," he said.

In terms of innovation, which is also an important notion in the plan, Steinbock said, "Chinese innovation will differ from that of the advanced economies [because] as an emerging economy, it will focus more on affordable innovations that serve ordinary people."

Stressing it is “a big deal” to include the Belt and Road Initiative in the plan, he noted, the initiative "has the potential to accelerate industrialization in many emerging nations and thus to fuel global growth prospects, which is a win-win to us all."