A new report says China's rapid economic growth is unsustainable unless the country makes major free-market reforms. World Bank President Robert Zoellick released an executive summary of the report, which was jointly prepared by World Bank and Chinese experts. Zoellick said Monday in Beijing that the study had the full support of top leaders including Vice President Xi Jinping, who is slated to assume China's top posts in the coming months.
Zoellick said the study finds China's economy is at a turning point where the central role of state enterprises must be reduced to make room for private companies. The study also urges the government to provide better protection for the rights of farmers whose land is at risk and of migrant workers seeking jobs in the cities. Other recommendations call for China to shift away from its emphasis on exports and encourage more domestic consumption. The report says private banks should be allowed to play a larger role, and interest rates should be determined by market forces.