Structural tax reforms needed

Adjustments should encourage consumption and support eco-friendly industries and smaller market players

China's continuing economic deceleration, as indicated by its gloomier industrial added value and manufacturing purchasing managers index in August, has added more difficulties to its task of "stabilizing growth" and increased the risk of a hard landing.

The feeble exporting momentum and slow progress in digesting the accumulated inventory and expanding domestic demand have once again pushed investment to the forefront as an overpowering option to bolster economic growth. The accelerated approval by the National Development and Reform Commission, China's economic planner, of infrastructure projects across the country in recent months has manifested the government's desire to stoke economic growth through investment expansion.