Famous economists, including Wang Mengkui, Wu Jinglian, Lin Yifu and Xiao Zhuoji, attended the forum to address the theme of the 16th CPC National Congress and China’s Economic Development in the 21st Century.

Wang Mengkui, director of the Development Research Center of the State Council, said although the Chinese economy faces many difficulties, it does have a number of advantages. First, there is huge potential in investment and consumption, giving the economy plenty of room for growth. Second, sufficient energy and raw materials and quick transportation provide a solid base for economic growth. Third, deep reform and wide opening-up will help China use domestic and overseas resources and markets.

During the 16th Party Congress it was decided that previous methods of managing state property will change. While maintaining state ownership, central, provincial and municipal (prefectural) governments will set up state property management organizations. Wu Jinglian, a famous economist, said this will promote property reform in state-owned enterprises and accelerate the separation of government functions from enterprise management. Wu believes the decision will lead to reforms in China’s overall economy, especially in economic restructuring, and that it will greatly promote the organization of a socialist market economy.

Lin Yifu, head of the China Center for Economic Research at Peking University, said to reach an overall level ofxiaokang, China needs to maintain an average of 7-8 percent economic growth until 2020. The key driving force behind economic development is technological innovation. China can introduce advanced technology from developed countries to reduce the costs associated with economic development.

Lin also admitted that there are challenges including: economic system reforms, the transition from a planned economy to a market economy, reform of state-owned enterprises, economic globalization, problems related to China’s entry to the WTO, such as reduced tariffs, the opening up of markets and international competition as well as the need to improve the lives of the rural population.

Economist Dong Fureng believes it significant that the 16th Party Congress put forward ideas to encourage, support and guide the development of non-public sectors of the economy. He believes the non-public economy will develop rapidly after the congress, thus providing a guarantee for realizing an overall level ofxiaokang in an all-round way.

Liu Wei, head of the Peking University College of Economics, said there is no reason to doubt China can maintain a high rate of economic growth in the coming years since the country is now experiencing accelerated industrialization. Liu predicts that China’s economy will grow at an annual rate of 7.5-9 percent over the next 20 years.

(China.org.cn by Feng Yikun, December 18, 2002)