China will build on the forward momentum and continue its economic structural reforms in 2017, in an effort to provide more opportunities for global growth.[Special Coverage]
Deepening supply-side structural reforms, aimed at mid- and long-term stable growth, will remain at the center, according to this year's government work report, which sets the GDP growth target for 2017 at around 6.5 percent.
SUPPLY-SIDE STRUCTURAL REFORMS
China's supply-side reforms started in 2016. Among the efforts, capacity reduction will this year expand from coal and steel industries to sectors including coal-fired power, building materials and nonferrous metal, said the National Development and Reform Commission on March 6.
The government work report urges a decisive market role and an improved government role in resources distribution so as to secure progress in this area.
"Aiming to resolve bottlenecks blocking mid- and long-term growth, the supply-side reforms are timely and necessary for a sustainable growth in China," Selcuk Colakoglu, head of Asia-Pacific Studies at the Ankara-based International Strategic Research Organization, said in a comment.
Former Indonesian vice foreign minister Dino Patti Djalal said,"The resulting economic upgrading will bring more opportunities to the global growth."
Changes are believed to be directly and soon felt in future prices on world markets, of the bulk commodity in particular, as China is the world's second largest economy, as well as the largest coal consumer and steel producer.
For example, China's supply-side reforms last year contributed to an aluminum price hike.
"That (the reform) brings all of us in the industry to a healthier situation, when we see the new levels of prices," Vladislav Soloviev, CEO of the world's leading aluminum producer RUSAL of Russia, told Xinhua during the World Economic Forum (WEF) held in January in Davos, Switzerland.
He attributed the price rise to an expanding demand in all markets especially China, and was confident about sharing a bright future of China's reforms.
"The market is growing, economic reform is happening, there are a lot of infrastructural reforms ...That's why we are quite optimistic about the demand of the future, also about joint ventures with Chinese companies," he said.
INNOVATION-FOCUSED UPGRADING OF ECONOMY
It is China's priority to transform and upgrade the real economy in order to release potentials for a sustainable growth. The government work report demands innovation take the lead, which is expected to see new concepts, management modes and technologies.