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World Bank President Robert Zoellick is on a three day-visit to China. The visit has witnessed the launch of a major joint report about China's economic opportunities, the future direction of China's reform and development, as well as challenges for the years ahead.
World Bank Chief: Strengthening role of market.
China may need to take a step back for the economy to thrive. A new report from the World Bank and a Chinese government think tank calls on the government to curb state industry and strengthen a market-based economy.
Robert Zoellick said, "There is a lack of clarity in distinguishing the roles of the government, state enterprises and the private sector. China needs to resolve these issues. The Chinese economy of the future needs to rely more on markets and the private sector."
Now the number two economy, China has seen on average 10 percent annual growth over the last thirty years. But World Bank President Robert Zoellick warns the current growth model is unsustainable. Robert Zoellick said, "China is likely to have a soft landing."
The report predicts economic growth will slow to 8.5 percent until 2015, and then drop to 5% by 2026. Even so, China would still replace the United States as the world's largest economy by 2030.