Asia Society: China’s Reform Program Could Shock The World Economy

Earlier this week the World Bank called upon China to cut its economic growth target of 7.5% for 2015 to 7%, and focus instead on achieving its reform plans.

“The current emphasis on meeting short-term growth targets will make it more challenging to implement the policies necessary to shift growth to a more sustainable medium-term path,” said the World Bank In its China Economic Update for October 2014.

“China’s key medium-term policy challenge remains implementing reforms that support China’s next transformation toward more efficient, equitable, and sustainable growth,” the Bank added.

Given China’s significance in the global economy, its future growth prospects are of widespread interest. These are interlinked with the measures that the country will take to reignite...