Learning English - Words in the News
09 March, 2007 - Published 13:14 GMT
China economic growth
China should move faster on opening its financial markets for the sake of its economic growth and stability, US treasury secretary Henry Paulson said on Thursday in a speech to business leaders in Shanghai. This report from Quentin Sommerville:
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China's well on the road to moving from a state controlled economy to a market driven one but the US treasury secretary says it needs to speed up reform in some areas. Henry Paulson told an audience in Shanghai that reforming the financial and banking system would be the only way to ensure that China's economic miracle is sustainable over the long term.
The country's success is built on low cost manufacturing but Mr Paulson says if it wants to offer more profitable goods and services then money needs to move more freely with fewer government controls. Despite extensive reforms China's banks are still state-owned. They're bureaucratic and unwilling to take risks. So they're unlikely to lend to new companies with innovative and potentially profitable ideas.
With the economy growing at 10 percent a year Mr Paulson said it is better to implement reforms during periods of economic strength rather than wait for things to go wrong and then try and fix them. The Chinese leadership recognises that the financial system here needs a lot of work. Mr Poulson's speech will be viewed as a friendly nudge in that direction. He's making good on his promise that the United States will no longer lecture China but work alongside it as it attempts to reform its economy.
Quentin Sommerville, BBC News, Shanghai
Listen to the words
well on the road
steadily moving (towards a goal), making good progress
to speed up reform
introduce positive changes more quickly
sustainable over the long term
able to continue for a long time
profitable
making money by selling goods or services
bureaucratic
involving a lot of complicated official rules and processes
unwilling to take risks
not wanting to do something because you know it may have bad results
innovative
new, different and better than what existed before
to implement reforms
to make, or introduce improvements
nudge
a gentle attempt to persuade or encourage someone to take a particular action
making good on his promise
keeping his promise, doing what he has promised to do
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