China must accelerate reforms to contribute more to global growth, says economist

China will continue to contribute to global growth amid its increased efforts to speed up economic reforms, but the further potential of the US should not be underestimated as it is still an important global economic engine, although it has been performing under par, according to a leading European economist.

"China's contribution to global growth remains strong in spite of a slowdown in growth in past years," said Fredrik Erixon, director of the Brussels-based European Centre for International Political Economy during an interview with China Daily.

He said: "China can certainly continue to grow at current rates but for sustained growth it needs to accelerate reforms and the economic transition."

Statistics from the International Monetary Fund show that in 2011-2016, China's contributed roughly 25-30 percent of global economic growth.

Last year, China's economy achieved 6.7 percent year-on-year growth while Premier Li Keqiang has announced this year's growth target will be approximately 6.5 percent, leaving enough room to fulfill structural reforms.

Erixon said since 2012 China had been radically implementing a structural shift in growth sources, moving away from investment and export-led growth to new growth driven by services and consumption.

Fredrik Erixon, director of the Brussels-based European Centre for International Political Economy. [Photo provided to China Daily]

He said part of that was the reform portfolio, aiming to unleash China's domestic economic potential by opening up more competition.

Erixon added that productivity and innovation were also key aspects of China's reform program, but the government saw the issue in terms of 'input', improving skills and education, for example.

Compared with China, Erixon said the US was an important engine for global growth, but it is performing below expectations.

He said: "The US economy is surrounded by exceptional uncertainty about the future conditions for doing business in the country."

Though the US is still the biggest economy in the world, its growth rate has been unsatisfactory in recent years and its contribution to global growth remains low.

As to the cooperation between China and EU, Erixon maintained that it was now vital to speed up the negotiations over a bilateral investment treaty.

He said: "That will unlock many other opportunities."