China needs ‘vital’ economic reforms, World Bank chief David Malpass tells Premier Li Keqiang
- World Bank chief David Malpass also met with the heads of the International Monetary Fund and the World Trade Organisation in Beijing on Thursday
- China is struggling to kick-start its economy, which expanded at its slowest pace for nearly three decades amid cooling global demand and a looming debt crisis at home
World Bank chief David Malpass urged China on Thursday to further open up its economy and reduce state subsidies, echoing key demands made by the United States in protracted trade war negotiations.
“I encouraged new reforms and liberalisation,” he said after a round table meeting with Chinese Premier Li Keqiang and the heads of other global institutions, including the International Monetary Fund (IMF) and the World Trade Organisation.
China could improve the rule of law, allow the market to play a more decisive role in allocating resources including debt and investment, reduce subsidies for state-owned enterprises … and remove barriers to competition
Malpass said China must resolve bilateral trade disputes and improve transparency in lending to avoid a sharp downturn over the coming decades.
“China could improve the rule of law, allow the market to play a more decisive role in allocating resources including debt and investment, reduce subsidies for state-owned enterprises … and remove barriers to competition,” he said.
“It is hard to achieve but it is vital for reducing any inequality and building higher living standard.”
