Davos: China has reached a “point of no return” and the country has to now rely on innovation and reforms rather than depend on investment alone for economic growth, a top official of a Chinese bank said on Thursday.
“China has reached the point of no return — the country needs to deepen reforms to avoid the middle-income trap,” Industrial and Commercial Bank of China chairman Jiang Jianqing said at the World Economic Forum (WEF) here.
The comments come at a time when global markets are witnessing volatility amid rising concerns over slowing growth of the Chinese economy.
Mr Jianqing said China can no longer depend on investment and need to rely on innovation and economic reforms to deliver the next wave of economic growth.
“Communication is key, there is a misunderstanding of policy in the new normal,” he said while speaking at a session on the Chinese economy.
