Opinion | In 2015, reform will set the tone for the new normal in China
Hu Shuli says as Beijing's push for reforms intensifies, so should its anti-graft fight. And it must brace itself for stubborn opposition
The year just past could be said to be China's year of reforms. Hopes of progress were high in 2014. So, while we commend the strides that reformers have made, we note that progress in some areas appears to be stalling.
In the second half of 2014, the "new normal" became a catchphrase in Chinese finance, encapsulating the tug of war between the old and new approaches to the country's development.
The new normal will continue to dominate debate in 2015. So will the implementation of the leaders' blueprints for economic and legal reforms, unveiled separately at the Central Committee's third and fourth plenums.
The economy is already enjoying some reform dividends, thanks to initial efforts to streamline central government administration, impose some limits on government powers and overhaul the household registration system, among others. Interest rate liberalisation is proceeding faster than expected, while the initiatives to simplify business registration and extend a value-added tax, in place of a business tax, have gone down well.
All these have helped to ensure China's economic growth remains robust even if it has slowed.
But the reforms most critical to China's future prospects have yet to be fully launched. China is ready: the need for change is ever greater, and the conditions are right. If the country can shake itself loose from the bounds of ideology and overcome resistance from interest groups to push through some of these critical reforms, we can expect to see the more efficient allocation of resources and a fairer society.
The new normal will act as a beacon for the next round of reforms; conversely, these reforms will advance the cause of the new normal.
