China's reform positively influence Sino-European relation

China's course for reform unveiled after the 3rd Plenary Session of the 18th Central Committee of the Communist Party of China (CPC) will have positive influence on the Sino-European economic relation, a Chinese scholar told Xinhua in a recent interview.

Under the reform plan, the market will play a "decisive role," which according to Ding Yifan, deputy director of the Institute of World Development under the State Council's Development Research Center and vice chairman of the China Society of World Economics, means that "fundamentally the economy will be run by the market, will be self-regulating."

"The government will withdraw from its intervention in the market," Ding went on explaining on the sidelines of a gathering of international experts in Italy's business capital Milan.

"The state-owned enterprises (SOEs) are still the backbone of China's economy," he noted.

Ding pointed out "there will be a healthy competition between private enterprises, SOEs and other structures of companies. We will try to make them compete on an equal footing, which means the government will not continue to provide some fiscal or financial advantage to SOEs."

He said the Chinese government is trying to promote economic growth by innovating institutions, which means "in the future foreign investors will face more stable investment environment."

"If you make investment environment more transparent, you can expect that more foreign investors will come to your market. In the past, the Chinese government tried to attract foreign investments with fiscal advantages. It will be different in the future," the scholar highlighted.

The good message for the European Union (EU), which is considered by China as a "crucial, strategic partner in the world," lies in China's will to find "some new incentive for its future economic development," Ding said.

"I am sure all these reforms put into practice will give some new momentum to Chinese development and growth, and if China can continue to grow healthily, it will provide big opportunities for European business," he explained to Xinhua.