(Updates with Zoellick comments in second paragraph.)
Feb. 27 (Bloomberg) -- China’s economic-growth model isn’t sustainable and needs changes so the nation can better transition to a market-oriented system, World Bank President Robert Zoellick said.
China needs to rely more on markets and the private sector, alter its “hukou,” or residency-permit, system and provide basic social protection to all its citizens, Zoellick said today in Beijing at a conference to introduce a report titled “China 2030,” co-authored by the World Bank and the Development Research Center of China’s State Council. The full report is scheduled for release at about 4 p.m. local time today, according to the Washington-based lender.
The report was conceived to help China avoid the so-called middle-income trap that often stalls the productivity and income growth of countries when their per capita incomes reach $3,000 to $6,000, Zoellick said in September.
“As China’s leaders know, the country’s current economic- growth model is not sustainable,” Zoellick said today.
Also at today’s event, Chinese Finance Minister Xie Xuren said the government will continue to deepen reform and accelerate economic restructuring. It will also focus more on employment, he said.
--Zheng Lifei, Kevin Hamlin. Editors: Scott Lanman, Nerys Avery
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