China promises sweeping economic change

Published March 6, 2011 5:00am ET



BEIJING — China’s government is promising an economic overhaul that would raise the status of consumers and entrepreneurs but has given no sign how it will tackle its politically volatile reforms. Beijing wants to nurture self-sustaining growth driven by consumption and develop service and high-tech industries, Premier Wen Jiabao said in a weekend speech outlining goals for 2011. That will require reining in elite state industry and other changes that might trigger a backlash within the party — hurdles Wen avoided mentioning.

“It looks great on the surface but it isn’t clear whether they have the political capital or will to push through those changes,” said Alistair Thornton, China analyst for IHS Global Insight.

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