The Managing Director of the International Monetary Fund (IMF) has urged China to implement a comprehensive set of pro-market reforms to revitalize its economy amidst challenges like a housing market crisis, weak domestic demand, and high youth unemployment. Chinese policymakers have emphasized the shift towards high-quality growth over extensive government stimulus measures.
Speaking at the China Development Forum in Beijing, IMF’s Kristalina Georgieva highlighted the importance of transitioning to high-quality growth for China’s economic future. She emphasized that with a robust package of pro-market reforms, China could experience significantly accelerated growth compared to maintaining the status quo. Georgieva stressed the need for Beijing to take decisive actions to address issues like excess unfinished housing and allow market-driven corrections in the real estate sector burdened by debt.
Additionally, she recommended enhancing individuals’ spending power through improvements in China’s pension system and social security framework. Furthermore, Georgieva called for creating a more favorable business environment that ensures fair competition between private and state-owned enterprises.
Premier Li Qiang expressed these sentiments at the forum, expressing China’s commitment to promoting high-quality development and contributing positively to global economic recovery through practical measures. Despite China’s declining GDP growth rates and setting a modest annual target of around 5 percent, optimism about the economy was evident at the forum.
Notable figures like Apple’s Tim Cook praised China’s openness and announced plans for increased investment in research and development within the country. Cook also revealed that Apple’s Vision Pro mixed-reality headset would be available in China by year-end. The forum, attended by prominent business leaders including Tim Cook, showcased China’s appeal as a key market for global companies like Apple. Cook’s discussions with Chinese officials underscored Apple’s commitment to expanding its presence in China, exemplifying the country’s significance in the tech giant’s strategic plans. Sunday’s forum was attended by some of the world’s high profile business figures.
