The Chinese government is taking absolutely adequate measures to handle slowing economic growth and an increase of certain imbalances, a leading Russian expert has said, commenting on China's key economic meeting held last weekend.
"What is now outlined may be called an absolutely rational anti-crisis program. Perhaps, currently there is no other correct alternative," Alexey Maslov, head of the Oriental Studies Department at the Russian Higher School of Economics Research University, said in a recent interview with Xinhua.
The Central Economic Work Conference, which was held in China's capital Beijing from Friday to Monday, reviewed China's economic performance in 2015 and mapped out plans for 2016.
According to an official statement released after the meeting, the government will make fiscal policy more forceful and monetary policy more flexible to keep growth within a proper range in 2016, with an emphasis on structural reforms.
"It is good that the Chinese leadership takes a realistic approach to its economy, and does not repeat mistakes of the Soviet Union, when economic indicators showed a pre-crisis situation but the government did not react, which led to the collapse of one of the largest countries in the world," Maslov said, adding these measures should have been adopted even earlier by the Soviet government.
Maslov believed that the steps taken by the Chinese leadership cover a whole range of problems, one of which is the necessity to cut the number of inefficient production facilities.
Most businesses, which are likely to be closed, have very large debts to the banks. Most importantly, the situation reflects the backwardness of the country in a number of areas, while China is striving to create high-tech industries, the expert said.
Another important point in China's 2016 economic policies, according to the scholar, is to reduce the tax burden.
"China has already begun the tax reform in order to make taxes more transparent and easier to pay. Typically, a simplified form of paying taxes increases their collection. That is, the state budget will get more revenues," Maslov said.
In his opinion, an important task for China will be the weakening of social tension, as China has in recent years undertaken an enormous social burden of a scale unrivaled by any other country.
The social reform includes above all a comprehensive pension reform, significantly increased social subsidies and a very serious restructuring of the health care system, which greatly strains the budget, said Maslov.
"Now China has to avoid social imbalances in the country without reducing the social component. This is the problem of 2016," Maslov said.
Praising China's Belt and Road Initiative as "a new concept of economic globalization," the expert noted that the ambitious project was accepted and implemented very well in some countries.
As there are still some countries not fully understanding the concept, Maslov suggested that the Belt and Road project be spontaneously promoted alongside the success of the Chinese economy.
Maslov added that the level of consistency and firmness in the implementation of the Belt and Road Initiative will in turn "determine whether China is going to be more prosperous or slow down."
The Belt and Road Initiative, a reference to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, was put forward by Chinese President Xi Jinping during his overseas visits in 2013.
It brings together countries in Asia, Europe and even Africa, with the purpose of boosting infrastructure building, financial cooperation and cultural exchanges in those regions.