Albert Park comments on China’s administrative reforms on South China Morning Post
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A panel of experts, including Prof. Albert Park, Director of HKUST IEMS, were interviewed in a article published on the South China Morning Post (SCMP) on February 10, 2015 for their views on China’s recent efforts to create a more balanced economy.
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“China has always been protective of what it labels as strategic centres [energy, telecommunications, utilities and finance] in the past”, says Albert Park, director of the Hong Kong University for Science and Technology, for emerging market studies…
Reform has come in other ways, as well. “[Premier] Li Keqiang and others are pushing administrative reforms, making it easier to register and to do things without too much red tape,” Park notes. “People feel significant changes are occurring.” …
Not every company and industry will take advantage of these changes equally. “It’s tough these days for Hong Kong firms built on a labour-intensive model, they may just go away or move on to other countries,” Park observes.
Analysts expect the most successful elements of these experiments will become national. “That’s the China model, to experiment in areas and if it works, expand it,” Park notes. “To some extent, the administrative reforms going on everywhere are an extension of what is happening in Shanghai, though not to the same degree.” …
Park suggests that changes in fields that open up to private domestic and foreign firms come quickly when new entrants emerge. If China “wants to open up those sectors, people will come, they know what to do if they are allowed in”. …
The other experts interviewed in the article include Daniel Rosen, co-founder of Rhodium Group, a New York-based research partnership and a 20-year China economic analyst; Julian Evans-Pritchard, China economist at Capital Economics; and Maria Kotova, a senior associate in the international business advisory department at Dezan Shira and Associates, a specialist foreign direct investment practice.
Read the full article here: China’s economic reforms will give a boost to the private sector.
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