Experts on China economy

As Chinese lawmakers and political advisors are meeting in Beijing, the future of the world's second largest economy comes top at the agenda.

CNC sits down with economists to hear their opinions.

PKG:

Experts say, no one can deny the huge economic success China has achieved.

After three decades of stellar growth, China has become the world's second-largest economy.

Columbia University Professor David Beim believes a major reason for the huge leap is reform carried out by China.

SOUNDBITE (ENGLISH) DAVID BEIM, Columbia Business School professor:

"It had huge economic growth because of changes. And in the 80s, it was about Deng Xiaoping, release China's entrepreneurial energy which was huge. And it's transformative and very powerful. In the 80s, it was a wave of growth. In the 90s, China built the export model, in the coast of China, especially in the southeast coast, eventually all along. The idea was to use the exports to drive growth."

Despite the importance of exports, Beim says, now it's time to unleash the power of China's consumers to sustain the economic growth.

SOUNDBITE (ENGLISH) DAVID BEIM, Columbia Business School professor:

"Now everyone knows that China has to increase consumption. If there is another great wave of growth coming, I think it could well be. It will be based on consumption, everybody knows this. The government knows this."

He also says China has to adopt carefully-crafted policies to realize its economic strategy that makes consumers the cornerstone.

SOUNDBITE (ENGLISH) DAVID BEIM, Columbia Business School professor:

"I think their goals are good ones. They are accurate. They are well meaning, and they are pointing to the right direction. So everything looks good. It's just such a difficult problem. And people maybe focus on the wrong issues. I think the goal is not in doubt. You have to get consumption up. How to do it is more in doubt. And I think anything that puts more money in people's pockets today is probably the most effective thing the government can do."

Apart from consumption, some experts believe China has to move up the global production chain to keep its economy humming.

Shaun Rein, Managing Director of the Shanghai-based China Market Research Group, highlights the importance of upgrading the country's manufacturing sector.

SOUNDBITE (ENGLISH): SHAUN REIN, China Market Research Group Managing Director:

"It's going to take a decade or more for China to create a better brand image globally as producing good-quality products. Right now, it's known for cheap, poor quality and there are a lot of issues in the supply chain. There are way too many food and product scandals. So it's going to take a while. It's changing really from Chinese entrepreneurs who are understanding that the global market wants good-quality products. And so you're seeing, Chinese companies are focused on quality control, they're focused on building a great brand and they're slowly starting to move up."

This transition, he says, will benefit the Chinese society as workers will gradually have more buying power and thus boost domestic consumption.

SOUNDBITE (ENGLISH): SHAUN REIN, China Market Research Group Managing Director:

"It's creating a good society, much healthier. Right now, the Chinese are no longer desperate to eat and get clothing and food. Right now, they're really being able to realize more of their lifestyle dreams, they have better hopes and aspirations because even though there is a slowing economy, the labor market is still fairly strong. In 2012 the average migrant worker salary in urban areas went up 14 percent. So you are creating this class of hundreds of millions of Chinese who are looking to buy better quality, healthy products to take care of their families and to realize what their hopes and dreams and aspirations are."

The benefits go beyond that. Rein says, making more quality products and boosting domestic consumption will also reduce trade frictions between China and its partners.