China’s GDP growth is expected to remain above 6% over the next two years, but it will likely decelerate to 5% to 6% after 2020, said Liu Shijin, member of the Monetary Policy Committee at the People’s Bank of China, Yicai.com reported.
“It is not easy to achieve such economic growth, and we must find new growth momentum,” said Liu.
New growth momentum lies in rural areas, especially those small towns around the metropolitan areas, said Liu. To develop these areas, several reforms must be prioritized.
The government should allow land, funds and labour to freely shift between urban and rural areas. Also, it is necessary to relax access in basic industry, encourage competition and reduce the costs of energy, logistics, communications, capital and land.
Meanwhile, the opening up of the knowledge-intensive service industry should be accelerated, Liu added.