Top economist calls for greater reform

Li Daokui, head of the Center for China in the World Economy under Tsinghua University and a former adviser to China's central bank. [File photo]

China's top economist Li Daokui called for more push for further economic reform despite the fact that China's economy has perked up, following a sharp fall in growth in the first quarter of the year.

Speaking at a forum in Beijing on Saturday, Li Daokui, head of the Center for China in the World Economy under Tsinghua University and a former adviser to China's central bank, said that a series of economy-boosting measures have taken effect since April, as the economy has shown signs of a rebound, but China needs to push ahead with reform.

According to a recent report issued by Tsinghua University, resilient infrastructure investment has partly offset the impact caused by the decline in the investment going to real estate sector, and consumption has buoyed the economy, as it undergoes rebalancing and restructuring.

The report predicted that this year's economic growth rate will be 7.6 percent, and CPI growth will be at 2.5 percent.

Li said that economic recovery has taken hold, but the focus should still be put on reform, and a raft of problems stemming from the economic slowdown should be addressed through reform.

"Only reform can generate dynamic growth," he said.

He predicted that in the second half of this year, China will very likely carry on with the fine-tuned monetary policy implemented in the second quarter, which will remain prudent.

He said consumption will contribute more to economic growth and economic rebalancing will continue.

He added that a range of reforms are awaiting on the list, such as SOE (State-owned enterprise) reform and removal of systemic obstacles. "But fighting corruption is at the top of the list," he said.