China’s domestic visa system, the Hukou, is a drain on its economy and makes if very hard for the industry to switch from export and investment driven to a consumption economy, says economist Heleen Mees in the Globe&Mail.
“I think the relaxation of the hukou system around China is very important, and it’s very easy for China. It has a lot of benefits,” said Heleen Mees, a Dutch economist teaching at New York University who has studied the role of the high savings rate in China in the 2008 financial crisis.
Along with fuelling consumption, she said, such a move could strengthen China’s service economy, moving the focus away from low-end, heavily polluting manufacturing for export.
“The collapse of exports only reinforces the point that China will have to find its internal growth engine because they can’t rely on the U.S., they can’t rely on Europe,” she said.
More on the political changes needed in the coming ten years at the China Weekly Hangout of November 1.
- How Yum! rebranded for success in China – Heleen Wang (chinaspeakersbureau.info)
- How is China securiting its energy supply? – China Weekly Hangout (chinaherald.net)
- China’s great growth means widening gap between rich and poor (itv.com)