Prof. Lu Feng: More Endogenous Momentum Can be Unlocked for Economic Growth
Apr 06-2022
A pattern could be identified in China’s 40-plus-year reform and opening up: macro policies tended to be adopted to ensure stability at time of economic overheating or crisis, and reform measures were taken to galvanize economic development up one plateau, said Prof. Lu Feng of the NSD in a media interview that sought to shed light on various aspects of the Chinese and world economy.
2020 and 2021 saw the adoption of a number of reform measures, including the ‘three-child policy’, the registration reform in the capital market, and the establishment of a national carbon trading market. All these could be expected to spur economic growth. However, reform to some of the key areas outlined in the Third Plenary Session of the 18th Central Committee of the CPC still trailed behind and pointed to the need for more profound measures to substantially shape the endogenous momentum of the economy, said Prof. Lu.
An overall lack of momentum was also evident on the investment front, observed Prof. Lu. The private sector in particular had experienced a fairly fast decline in investment growth rate. Such a lackluster performance could be attributed to the macro-economic trend as well as the policy and propaganda environment, said Prof. Lu, who added that the messages from the Central Economic Working Conference, held in late 2021, came at a good time to stabilize both the development of the private sector and the expectations of entrepreneurs. Yet as far as short-term growth targets were concerned, government policies remained critical to the initiation, approval and financing of large infrastructure projects, said Prof. Lu. New policy measures could facilitate the realization of a range of economically rational investment opportunities in such fields as 5G, new energy, urban construction, and hydro-projects.
On the international front, Prof. Lu believed China could achieve more in promoting innovations to regional trade rules while contributing to reforms of multilateral trade mechanisms and global economic governance. Following its accession to the RCEP, China submitted its membership application to the CPTPP in September 2021, signaling its pragmatic adjustments to accommodate and address fresh challenges in globalization.
