The right way to overcome financial difficulty

Premier Li Keqiang vowed at the State Council on June 19 to support economic structural adjustment to make sure that China heeds the lessons of Wall Street's mistakes, said an article in the 21st Century Business Herald (excerpts below).

China is transforming its industrial structure and focusing on the service sector. That's not to say that the real economy, manufacturing, will be neglected. But an economy must have a range of strengths and not be too reliant on any single sector.

As Premier Li Keqiang said printing money is not a solution. Prudence, good management and targeting investment are important aspects to making sure that the economy remains flexible and robust.

The government should weed out backward excessive productivity to release market space and restructure industry debt. Social capital also deserves a place in China's efforts to overcome current financial and economic difficulties.