Mainland China has retained its 28th position in the annual Global Competitiveness index, but reform efforts need to be intensified in the wake of fresh challenges, a World Economic Forum (WEF) report said.
The weakening of the yuan, the stock market crash, rapid credit growth and a stalling property market have cast some doubt on the mainland’s economic prospects, though a hard landing is unlikely, the WEF report said.
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The index ranks the competitiveness of 140 economies based on 12 indicators including infrastructure, macroeconomic environment, market size, innovation, technological readiness, labour market efficiency and financial market development.
Taiwan’s position fell by one place this year to 15th. The mainland has higher scores in market size, public health and primary education.
The mainland’s macroeconomic environment is relatively stable, fostered by the government’s investment in transport and energy infrastructure. However, an economic slowdown is inevitable under the nation’s “new normal”, the report said.
“China must pursue market-oriented reforms, promote entrepreneurship and nurture talent to continue to move up the value chain,” the report said.