Summary Box: World Bank calls for China reform

AP News
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Posted: Feb 27, 2012 1:04 PM

THE REPORT: China needs a new economic strategy after three decades of rapid growth and must reduce the dominance of state companies and promote free markets to achieve its goal of becoming a high-income society, the World Bank and Chinese researchers said Monday.

THE BACKDROP: The recommendations come amid debate in the ruling Communist Party over reform as a new generation of leaders prepare to take office this year.

STATE CONTROL: The report highlights the fact that three decades of reforms allowed Chinese entrepreneurs to become world leaders in export-driven manufacturing, but state companies still control domestic industries.