(MENAFN - Qatar News Agency) World Bank President Robert Zoellick announced Tuesday that China is facing a turning point for long-term economic growth and must intensify market reforms to sustain development. Chinese TV channel (CCTV) reported that Zoellick, who has begun his three-day visit to China, met today with Chinese officials in Beijing for the "Chine 20-30" joint report, a review of the country s development through to the year 2030.
The report, co-authored by the World Bank and the Development and Research Centre of China's State Council, forecasts that China s growth will slow to between 5% and 6% per annum by the year 2030. It argues that the risks posed by the economic slowdown may be persistent if reforms are not made on time.
"As known by the Chinese leaders, China s current economic growth model is not sustainable. China has recognized the challenges of moving away from the export-led growth towards and over reliance on investment towards greater domestic demand and consumption. China also faces challenges that are special to its own. Its population are getting old become getting wealthy," said Zoellick.
The World Bank President explained that China s leaders have recognized that the country s growth model, which has been so successful for the past 30 years, will need to be changed to adapt amid new challenges.
"China will attach greater importance to the overall design and plan of reforms, while valuing innovation. We will steadily push forward reforms in the economic, political, cultural and social sectors, and speed up the formation of mechanisms that are beneficial to economic development," said Chinese Minister of Finance, Xie Xuren at the opening of the report.
Xuren added that China will continue to deepen changes and accelerate economic restructuring.
Economic growth in China slowed last year, after the government increased interest rates and tightened monetary controls to lower inflation and the over-activation of the property sector.
In recent months, Chinese policymakers have modified policies by supporting more bank lending to companies, due to concerns over the domestic and global economic slowdown.