MOSCOW, September 5 (RIA Novosti) - IMF China Mission Chief Markus Rodlauer has commended China for its ongoing economic reforms directed at transforming the country’s industrial economy into a service economy, Xinhua news agency reported Friday.
“We have seen the major structural changes from an industrial economy to a service economy, this is progressing gradually,” Rodlauer was quoted by Xinhua as saying. “We have seen consumption growth quite steady at 9 or 10 percent every year, slightly higher than the GDP growth.”
Rodlauer also stated that China’s economic rebalancing could not happen overnight as many countries would wish it to since drastic changes require time for their realization.
“China has already progressed quite significantly in rebalancing. Let’s not forget the current account surplus was over 10 percent of GDP just five to seven years ago,” Rodlauer said.
Rodlauer, however, remarked that foreign investment still amounts to nearly 50 percent of China’s GDP growth. He suggested the proportion should be reduced to 30 percent.
He also declared that the private rather than the public sector should encourage investment in China.
