China could accelerate growth through market-friendly reforms, IMF Managing Director says By: Reuters

BEIJING (Reuters) – International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Sunday that a comprehensive package of pro-market reforms could allow China to grow at a significantly faster pace than in a status quo scenario. He said there is.

“This further growth, in today’s terms, is equivalent to an expansion of the real economy by 20% over the next 15 years,” Georgieva said in a speech at the China Development Forum, adding 3.5 trillion yen to China’s economy. measures to improve the sustainability of the real estate sector, reduce debt risks and focus more on domestic consumption.

Taking decisive action to reduce the inventory of unfinished homes and giving the real estate sector room for market-based redress could accelerate the resolution of current real estate sector problems and boost consumer and investor confidence. He said that there is.

Premier Li Qiang said on Friday, in his latest official remarks on the housing sector, China will further optimize its real estate policy. Earlier this month, Mr. Lee announced a target for annual growth of about 5% this year, which some analysts said was ambitious.

Georgieva also said China needs to rely more on domestic consumption. This can be achieved by increasing incomes, increasing the purchasing power of families and expanding social security systems, including pension systems, in a “fiscally responsible manner”.

Georgieva noted that China leads emerging countries in terms of AI preparedness, and said China should establish a strong AI regulatory framework.

In January, China’s Ministry of Industry released draft guidelines for standardization in the AI ​​industry, with the aim of developing national and industry-wide standards by 2026.

Georgieva said China “has great potential in promoting a green economy.” China is leading the way in deploying renewable energy, but to decarbonize more efficiently it needs to sell more electricity at market prices, he said. He also recommended that China extend the Emissions Trading System (ETS) to the industrial sector.

The ETS currently targets the power sector, but will include new sectors such as cement and aluminum by the end of 2025.