FRANKFURT — China’s economic and social development blueprint for 2016-2020 unveiled earlier this year shows China is on ‘the right track’ to make its economic growth ‘more sustainable,’ a German economics professor has said.
In a recent interview with Xinhua, Professor Horst Loechel at Frankfurt School of Finance and Management hailed the 13th five-year plan, which was approved by Chinese lawmakers in March, as a good decision, saying it is ‘the right track to go’ for the Chinese economy after decades of rapid growth.
The plan is about modernizing and rebalancing the economy and the level of innovation would be raised, Loechel said.
It will bring a clear impact to the Chinese economy, which will become more sustainable, he said, adding that a strong Chinese economy is good for the world economy and vice versa.
The blueprint outlines the policy framework, priorities and economic and social development goals for 2016-2020, including an innovation-driven development strategy and an average annual growth rate of above 6.5 percent.
China has come to a point where innovation and entrepreneurship are very important to raise productivity, Loechel said. He said market economy should be further strengthened in China in order to foster entrepreneurship and innovation.
Loechel believed more capital flows between China and the rest of the world is needed.
Chinese investors can get richer by investing in foreign countries and capital inflows from foreign countries to China can bring more advanced technology and raise the level of productivity and innovation, Loechel said. “I think it’s very important for China to further open up,” he added.
Economic development is not all about GDP (gross domestic product) per capita and it is also for the improvement of living standard of the people, Loechel said, adding that the new five-year plan focuses on the quality of growth.