OECD Chief Says Economic Restructuring China's Greatest Challenge
    2011-03-11 22:09:51     Xinhua      Web Editor: Sun
 

Economic restructuring is the greatest task that needs to be handled for China's future development, says Angel Gurria, chief of the Organization for Economic Cooperation and Development (OECD).

China's further progress is a function of many important factors, but if picking one out of all, "I would say the greatest one is changing the structure of the economy," he told Xinhua in a recent interview at OECD headquarters in Paris.

The OECD secretary-general, an advocator for close cooperation between the 34-member group and China, said that OECD is following the ongoing sessions of China's top legislature and political advisory body in Beijing as well as recent discussions about China's growth pattern.

"Indeed this is a very momentous event," he said of what is commonly known as a whole as the "two sessions," an annual political event of great importance.

"The 12th five-year plan (2011-2015) reflects many years of very hard work. It is not just about the next five-year plan, but it is also about the last 11th five-year plan (2006-2010) and all the accumulated experiences," he added.

In the pursuit of "a balanced growth," Gurria said, it is important for China to change the "economic structure," which includes a major shift from relying on export as "the only or main driver."

By doing so, China will "be less based on export growth but more based on an increase in domestic demand," and will gain "an improvement of the domestic economic environment so that the people who are not in export can also have the benefit involved in the export drive," he said.

Actually, economic restructuring is already happening in China, noted Gurria, who used to serve as Mexico's foreign minister and economy minister. "Most of the growth last year was because of the domestic demand. And export played a much smaller role."

Since the 2006 launch of the 11th five-year plan, the Chinese government has focused on the strategic change of economic structure. The effort is also prioritized in the new five-year plan.

This trend needs to be cemented and promoted, because it is a process that "evolves," said the OECD chief, who will fly to China to attend a forum on China's development later this month.

"There has to be a continuity because dramatic changes and brakes are not good," he said, adding that it is important to have "a clear direction."

Noting that economic restructuring will boost domestic demand, stimulate economy and reduce current account imbalances, Gurria said that once achieved, the transformation will benefit not only China but also the rest of the world, because China has become "a world player" with great international influence.

China is currently cooperating with many subcommittees and working groups of OECD, and both sides enjoy "very active" dialogues, the OECD chief said.

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