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Xinhua: Four Obstacles for Remodeling the Chinese Economy

Xinhua recently republished an article by Economic Information Daily that discussed the reason that China could not adjust to the right track of an economic development model. The author of the original article is the well-known Chinese economist Wu Jinglian. Wu believes there are four primary obstacles to the reform: (1) various levels of the government still control some important powers over resource allocation; (2) GDP growth is still the primary indicator for measuring of government performance; (3) the financial situation of the government is heavily connected to the growth of material products; (4) market power is very much constrained in terms of resource configurations.

Source: Xinhua, July 16, 2010