Effective Investment Key to Economic Transformation

　　Participants take part in the discussion "China's Changing Economy" during the 2013 Fortune Global Forum¹ in Chengdu, capital of southwest China's Sichuan Province, June 7, 2013. [Photo: Xinhua/Xue Yubin]

 

　　China's economy is changing. While most participants attending this year's Fortune Global Forum expressed their optimism towards the country's economic transformation², they also pointed³ out the challenges facing China.

 

　　CRI's Xiao Hua has more.

 

　　Dominic Barton, Global Managing Director of McKinsey & Company, expresses his optimism towards the transformation of the Chinese economy, which was a major topic during the Fortune Global Forum held in Chengdu.

 

　　"I am really bullish; I actually do think believe China can do it respecting all big challenges. But the good news is there is an underlying⁴ force of growth that is the urbanization. "

 

　　But not everyone in the business world shares Barton's attitude, with some expressing doubts and reservations towards China's economic prospects⁵.

 

　　Cai Hongbin, Dean of the Guanghua School of management of Peking University explained foreign attitudes towards China's economy.

 

　　"I think there are two kinds of people holding different opinions about China: those who come to China often are pretty optimistic, and those who never come to China are always predicting that China's economy is collapsing⁶."

 

　　Cai is optimistic, as are most of the participants attending this year's Fortune Global Forum discussing China's changing economy.

 

　　Cai states that the transition in China from investment to consumption driven growth is going to be a process, and key to the transformation is efficient investment.

 

　　"The key, I think, for the transformation to be successful is not the matter whether the investment is too much, or the investment is too little. It is really the quality of efficiency of this investment. In other words, it is the efficiency of capital allocation in China, I think that is the key."

 

　　Henry Paulson, the Former US Treasury⁷ Secretary is bullish regarding China's economic future, but also points out the issues China will face.

 

　　"China is too reliant on state-led investment and infrastructure⁸ and manufacturing, too reliant on exports. There is not enough domestic-led growth. It needs more from the services industry."

 

　　China's growth rate, while still robust⁹ by global standards, has slowed dramatically since 2010; it was 7.7% in the first quarter of 2013, down from recent double digits¹⁰. But Paulson has his own take on this.

 

　　"The economy (in China) is getting bigger and bigger. The growth needs to slow. And I think the key thing to focus on is long-term prosperity. And that's we are really talking about what sustainable to build a long-term prosperity. It's going to take a different growth model, different environment practices, some different approaches. So I think getting it done right is more important than whether it's 7 or 7.5."

 

　　Paulson stressed that China's new leadership must understand both the importance of the private sector¹¹ and the need for reform generally. He also points out that the economic reforms in China need to address the major environmental issues stemming from rapid urbanization, plus social issues due to migration¹², as well as an overhaul¹³ of capital markets by opening up the private sector.

 

　　For CRI, I'm Xiao Hua.

1 forum   

n.论坛，讨论会

参考例句：

• They're holding a forum on new ways of teaching history.他们正在举行历史教学讨论会。
• The organisation would provide a forum where problems could be discussed.这个组织将提供一个可以讨论问题的平台。

2 transformation   

n.变化；改造；转变

参考例句：

• Going to college brought about a dramatic transformation in her outlook.上大学使她的观念发生了巨大的变化。
• He was struggling to make the transformation from single man to responsible husband.他正在努力使自己由单身汉变为可靠的丈夫。

3 pointed   

adj.尖的，直截了当的

参考例句：

• He gave me a very sharp pointed pencil.他给我一支削得非常尖的铅笔。
• She wished to show Mrs.John Dashwood by this pointed invitation to her brother.她想通过对达茨伍德夫人提出直截了当的邀请向她的哥哥表示出来。

4 underlying   

adj.在下面的，含蓄的，潜在的

参考例句：

• The underlying theme of the novel is very serious.小说隐含的主题是十分严肃的。
• This word has its underlying meaning.这个单词有它潜在的含义。

5 prospects   

n.希望，前途(恒为复数)

参考例句：

• There is a mood of pessimism in the company about future job prospects. 公司中有一种对工作前景悲观的情绪。
• They are less sanguine about the company's long-term prospects. 他们对公司的远景不那么乐观。

6 collapsing   

压扁[平]，毁坏，断裂

参考例句：

• Rescuers used props to stop the roof of the tunnel collapsing. 救援人员用支柱防止隧道顶塌陷。
• The rocks were folded by collapsing into the center of the trough. 岩石由于坍陷进入凹槽的中心而发生褶皱。

7 treasury   

n.宝库；国库，金库；文库

参考例句：

• The Treasury was opposed in principle to the proposals.财政部原则上反对这些提案。
• This book is a treasury of useful information.这本书是有价值的信息宝库。

8 infrastructure   

n.下部构造，下部组织，基础结构，基础设施

参考例句：

• We should step up the development of infrastructure for research.加强科学基础设施建设。
• We should strengthen cultural infrastructure and boost various types of popular culture.加强文化基础设施建设，发展各类群众文化。

9 robust   

adj.强壮的，强健的，粗野的，需要体力的，浓的

参考例句：

• She is too tall and robust.她个子太高，身体太壮。
• China wants to keep growth robust to reduce poverty and avoid job losses,AP commented.美联社评论道，中国希望保持经济强势增长，以减少贫困和失业状况。

10 digits   

n.数字( digit的名词复数 )；手指，足趾

参考例句：

• The number 1000 contains four digits. 1000是四位数。 来自《简明英汉词典》
• The number 410 contains three digits. 数字 410 中包括三个数目字。 来自《现代英汉综合大词典》

11 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

12 migration   

n.迁移，移居，（鸟类等的）迁徙

参考例句：

• Swallows begin their migration south in autumn.燕子在秋季开始向南方迁移。
• He described the vernal migration of birds in detail.他详细地描述了鸟的春季移居。

13 overhaul   

v./n.大修，仔细检查

参考例句：

• Master Worker Wang is responsible for the overhaul of this grinder.王师傅主修这台磨床。
• It is generally appreciated that the rail network needs a complete overhaul.众所周知，铁路系统需要大检修。