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Business / Economy

China's further reforms to benefit world: Australian expert

(Xinhua) Updated: 2015-03-11 15:16

SYDNEY -- China's further reform and opening up of its economy will continue to have a major impact on the global economy, according to one of Australia's leading China experts, Laurie Pearcey.

Pearcey, who is director of Chinese strategy and development at the University of New South Wales, said it was important to examine the latest reforms in light of what has happened over the past 35 years.

He said the Chinese economy over the past decades has delivered enormous dividend to economies from all over the world including Australia, the US, the EU and the developing countries in Africa.

Pearcey said China was playing a constructive role in the global economic system and was a major driver of globalization.

The establishment of the Chinese-led Asian Infrastructure Development Bank will have enormous impact on the flow of capital and the creation of high-impact infrastructure projects across the region, and will have important flow-on effects that will create jobs.

"This is a Chinese initiative and that will lead to significant economic activity right across Asia," he said.

"As China assumes a more prominent role economically and politically on the international stage, it will be an important stakeholder and important driver of the globalization process for further integration of international markets and international economies over the next century."

Pearcey said the slowdown of the Chinese economy is fundamentally a product of deliberate policy making decisions by the Chinese government in Beijing.

"As China continues its shift to consumption reducing its dependence on large-ticket infrastructure projects in China and as it stimulates its services sector, people should not fear in terms of what that means for the overall health of the Chinese economy, but rather welcome the opportunities that creates for companies all around the world.

"It is a deliberate move by Beijing and ultimately that is a good thing for China's economy and the health of companies and countries around the world that increasingly trade and invest in China.

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