BEIJING (Reuters) - China should abandon a top-level strategy promoted by President Xi Jinping to increase self-reliance, or risk harming innovation and growth prospects, said a European business group on Thursday.
"There are troubling signs that China is increasingly turning inwards ... and this tendency is casting considerable doubts over the country's future growth trajectory," the report from the European Chamber of Commerce said.
A desire for political control and a "fear of volatility" are to blame, Chamber president Joerg Wuttke said at a briefing.
China has been trying to cut its dependence on overseas markets and technology in its long-term development, a shift brought on by a deepening rift with the United States, in a so-called "dual-circulation" strategy.
Continuing policy support for state-owned companies, the "unsettling" influence of national security concerns on economic policy and efforts to increase control over the private sector, will drag on innovation and efficiency, said the report.
"Although the costs of such an approach may not be felt for several years, they are considerable and should not be overlooked."
Dual circulation will require China to "deviate from the spirit" of the 1970s reforms that opened up the country's economy and spurred decades of rapid growth, it said, resulting in less foreign investment, misallocation of resources and growing push-back abroad.
"China runs the risk of punching below its weight," said Wuttke.
China's...
Read Full Story: https://money.usnews.com/investing/news/articles/2021-09-22/european-business-group-calls-for-china-to-end-self-reliance-strategy
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.