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OECD highly praises the structural reform of Chinese government

Updated: Jul 1,2017 7:20 AM

An evaluation report released by the Organization for Economic Cooperation and Development (OECD) has highly praised China’s structural reform, and stated it reduced market access barriers and increased the economic efficiency by simplifying administrations, along with improving services.

The report was OECD’s first evaluation on the structural reform for G20 members.

Premier Li Keqiang said in many occasions a strong simulation was not an option, and China’s structural reform should rely on administrative streamlining, optimization of public services and tax reductions.

According to the Premier, the benefits delivered by China’s ongoing structural reform have optimized the nation’s economic structure, supported the medium-to-high speed of growth and improved employment.

OECD’s report also noted China’s structural reform had achieved remarkable outcomes in promoting economic growth as a result of improved productivity and employment.

Statistics in the report showed the nation had created more than 13 million urban jobs for four consecutive years, with a low unemployment rate in 31 major cities for months.

Income was also an indicator highly valued by the OECD in the report. It noted and explained the rapid growth of per capita income was another proof of China’s remarkable structural reforms.

Meanwhile, the Gini index, which had been used to measure income inequality, has been declining since 2007, which indicates a narrowing gap between urban and rural areas, the report stated.

In terms of investment, China had an excellent performance with a stable growth in R & D input since the beginning of the century and a steady increase in national education expenditure, according to the report. In 2015, China spent 3.6 trillion yuan in educational funds, a 10 percent increase year-on-year.

In addition to cutting red tape, OECD further highlighted China’s efforts in building more free trade zones, in the report, to further promote trade and opening-up.

It noted, in recent years, many countries slowed their reform after the international financial crisis. However, China still pressed ahead with administrative streamlining, mass entrepreneurship and innovation, and other efforts in the structural reform.

As Premier Li said in a speech at OECD’s headquarter in Paris during July 2015, structural reform was an inevitable choice for the world to fight against economic slowdown.

“History tells us a crisis is always an opportunity for reform,” he said.

“Structural reform can motivate creativity of the public, thus making a vibrant economy possible.”