“The Global Financial Crisis has accelerated the impetus for change, with different regions within China responding in different ways, Mr Kroeber said.
“Sustained recovery now depends on the strength of property and infrastructure investment in the hinterland, and on the government’s ability to increase the efficiency of the financial system and break down local protectionism that impedes domestic trade.
“Rebalancing within China also means government policy is now aimed at strengthening the role of consumer spending, increasing energy efficiency and reducing pollution.
“Rapid economic growth has also increased the capacity for outward investment by Chinese firms, especially the 150 large state enterprises controlling the ‘commanding heights’ of the Chinese economy.
“China’s outward direct investments tripled to US$55 billion in 2008 and are expected to rise further in coming years with Chinese outward investment set to play a constructive ongoing role in fostering global economic growth,” he said.