China Research

15 months have gone since the important strategic meeting of the – then – new Chinese political leadership (Third Plenum). 16 important reform areas were presented with totally 60 more detailed subareas – most of them linked to economic policy and more social well-being. In the year 2020, the results of the reform policy are intended to be checked. In 2022 a new political generation will come into power.

But what happened in reform policy during 2014? It is certainly not easy to check out reform achievements. Certain policy steps/measures are more long-term oriented and hard or impossible to recognize in the short run. In other areas – like the financial sector – many changes and improvements are added to each other and can be (theoretically) more easily analyzed. But even in this context, it is difficult to get a fair picture of what has been done.

After having daily studied economic news from China during 2014, I come to the conclusion that China last year de facto has entered a new era of economic reform policy. However, it seems to be hard or even impossible to evaluate Chinese reform policy/measures more exactly. Most direct references are linked to the cautious, market-oriented changes of the financial sector. But usually, analysts just find the fragments and remain, consequently, without helicopter view.

Transparency must increase! This would give China more appreciation and encouragement for the structural reforms that are indeed taking place – despite many times lagging speed and – may be – effectiveness.

Let’s, for example, look for a moment at the financial sector. Many – mostly small but necessary – reform steps have been taken in the last year. These reform steps were published and available also for foreigners; I have noted these changes myself. However, it seems to be impossible to find an illuminating and detailed summary of all the financial reforms – preferably separated in the domestic and the cross-border financial business.

Consequently, I would regard as a good idea if the official China could establish a website where all concrete economic reform steps or measures are summarized in line with the reform agenda from November 2013, covering, for example, the financial system, the environment, infrastructure, state-owned enterprises, municipalities, etc. – certainly provided with continuous updating.

This would be a good contribution and an easy way to (some) more transparency – based on published reality. China itself and the rest of the world would benefit from simple innovations like this.

Hubert Fromlet
Senior Professor of International Economics, Linnaeus University
Editorial board

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