China maintaining financial, social stability

Can you summarize the greatest achievements of the Chinese government and the Asian Development Bank in the past five years?

The ADB has assisted China to sustainably reduce poverty and better manage vulnerability through a robust and nationally integrated social policy, to mitigate the drivers of inequality. This involves a two-pronged approach to reduce local poverty and better protect global public goods, and to secure and smooth China’s economic restructuring and transition toward a modern social services sector. stability. Once implemented, the decisions made at the National Financial Work Conference will further mitigate financial risks by providing an institutional framework for sector regulators to work together to head off incidents and contain their fallout.

Another challenge is to find the right balance between government intervention and letting markets play a decisive role. Substantial progress has been made over the past two years; for instance, with reducing excess industrial capacity and the housing overhang, and government intervention played a critical role here. However, it is also broadly accepted that wellregulated and competitive markets are critical for increasing economic efficiency and productivity. This is exactly what China needs to achieve a high-income economy in the coming years. track to eliminate rural poverty by 2020 as planned. In 2016, only 43.3 million rural poor remained (compared with 122.4 million in 2011).

One reason for its success is that it has devoted a large portion of its GDP to infrastructure investment compared with other developing countries in Asia. China has shown how an economy can achieve rapid growth by drawing on market systems and open trade and investment relations with partner countries. The government’s five-year plans, with their clear vision, have played an important role, and have helped attract private sector investment in infrastructure.