Economists and analysts currently focus on seven areas with regard to the factors that can promote economic restructuring policy reforms. This year these areas are likely to boost the world's second largest economy.
Active domestic demand. Stephen Roach, former chief economist from Morgan Stanley said, in 2015, China could inhibit the adverse effects arising from the economic slowdown, not causing a terrible hard landing, because domestic demand would be active in an unprecedented way.."
Homeopathic oil price trend. Former vice chairman of Goldman Sachs Asia Kenneth Curtis believed that oil and other commodity prices slump made China a "big winner". China could procure oil, coal and gas at a lower price and increase strategic energy reserves easily.
Energy market changes. Derek Scissors, a scholar at American Enterprise Institute said the oil price trend also provided a "great opportunity" in the process of energy market reform. China might take measures to reduce or eliminate subsidies and improve the efficiency of the energy industry.
Census register reform. Luis Kuijs, Chief China economist at Royal Bank of Scotland, said that welfare reform and the liberalization of small towns census registration system could help reduce precautionary savings and stimulate consumption.
Privatization wave. Deutsche Bank said the local government sought to remove the assets, which could set off a privatization. Zhang Zhiwei and Audrey, Hong Kong-based economists of the bank said, this should help boost productivity and improve growth prospects."
Advantageously external environment. Goldman Sachs said that China wanted to introduce market-oriented reforms, in 2015 there would be a more favorable environment in 2015, because the recovery of extensively developed economies would promote exports. (www.chinainout.com)
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