At the SteelOrbis Spring '11 Conference & 64rd IREPAS Meeting held in Hong Kong, Andrew Yao Cho Fai from the Hong Kong Rebar Importers & Stockists Association said that in China's 12th five-year plan period (2011-15) China will focus more on policies aimed at tackling high inflation and will increase its spending on health, education and other services. Pointing to greater caution on the part of the Chinese authorities, he said, "China will grow, but not at all costs."
Underlining that the Chinese government's main goal is to maintain stability and power, while economic growth is a by-product in this process, Mr. Yao said that in the long term China would switch to a more consumption and import-driven economy from being a production and export-driven economy, once basic social needs are satisfied. Strongly criticizing the Chinese government's actual policies, Mr. Yao told attendees that state-owned enterprises in China will retain their strong position, receiving intensive subsidies and having privileged access to loans and land, and therefore will remain more competitive as compared to private entrepreneurs.
Mr. Yao also remarked that China may let its currency in increase in value, and if this happens, he said, Shanghai will become China's financial center, while Hong Kong would continue to be an international finance center.