Opening-up, stress on value chains praised


The view of Shanghai's CBD is seen in this photo. [Photo/VCG]

China's unswerving commitment to high-level opening-up is "very welcome" when rising geo-economic fragmentation

is threatening global growth, said a senior official of the International Monetary Fund.

Krishna Srinivasan, director of the Asia and Pacific Department of the IMF, told China Daily that rising geopolitical tensions in

recent years have raised the risk that fragmentation pressures could add to global headwinds and cause a slowdown in trade

and foreign direct investment flows.

Particularly, IMF estimates showed that the Asia-Pacific region could suffer significantly in a severe fragmentation

scenario, with medium-term output losses of over 3 percent of GDP, Srinivasan said.
斯里尼瓦桑表示,IMF估计,亚太地区的严重分裂可能会给该地区带来重大损失,中期来看,损失将超过 GDP 的 3%。

"In this context, China's ambition of high-quality opening-up that focuses on increasing trade and attracting foreign direct

investment flows is very welcome," he said, adding that the country has played a key role in the development of regional and

global value chains.

"Strong domestic policies and a focus on international collaboration can help achieve these goals," he said, adding that

accelerating reforms to strengthen the real economy will be important for China to attract foreign investment.

As a vital engine of growth, China's economy is forecast by the IMF to grow by 5.2 percent this year and provide "a welcome

boost" to the world economy by contributing around one-third of global growth in 2023, Srinivasan said.

Going forward, ensuring high-quality growth that is balanced, inclusive and green will require concerted reforms in China,

including expanding domestic demand and shifting the composition of demand away from investment and toward

consumption, Srinivasan said.

The latest Government Work Report said efforts are required to give priority to the recovery and expansion of consumption,

underlining that the incomes of urban and rural residents should be boosted through multiple channels.

Fiscal policy can play a key role in rebalancing demand toward consumption as there remains room for China to shift fiscal

expenditure away from infrastructure investment toward support for households, Srinivasan said.