State monopolies tenacious barrier to reform
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[By Liu Rui/Global Times] |
It's been over three decades since "reform and opening-up" started in China.
This was the right road to take, as China's accomplishments have confirmed its success, and the policy receives approval from international society.
But considering the two crucial international issues that China is being confronted with, it receives more sanctions for trade protectionism than any other nation, and it faces huge pressure to let the yuan appreciate.
It also has two vital domestic issues: a lack of capacity to expand domestic demand and a polarizing gap between rich and poor. We need to reform the outside world, and open up at home.
The crux of international problems is the irrational rules in the global political and economic system. The current international trading and business rules were made for the benefits of the developed countries, while China, a newcomer in the international market, could only accept rather than set the regulations. Therefore, most Chinese enterprises' only comfort is that they've learned from their losses.
Nevertheless, having become the second largest economy in the world, China should now hold steady and be determined to promote the reform of the global economic rules. It shouldn't simply open the Chinese market and allow Western capital to run riot.
The country now is completely capable of using its market powers to change the rules, such as by promoting the reform of voting rights at the International Monetary Fund and helping change the international reserve currency system.
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