China's elite worry about lack of reform

The biggest threat to China’s economy in 2012 is a lack of timely and thorough reform of the financial market and political system, Chinese government officials and business leaders concluded at the Asia Financial Forum in Hong Kong yesterday.

This year is likely to be challenging for the world’s fastest-growing economy. As uncertainties in global markets and weakening demand from Europe and the US erode exports, so China needs dynamic systems to ensure its resilience during the economic downturn.

However, the government tends to respond to crises with short-term stimulus policies rather than “deep reform”, the panellists agreed, arguing that more fundamental changes are needed.

...