Chinese finance minister calls for structural reform of G20

Chinese Finance Minister Lou Jiwei (C) addresses the opening ceremony of the G20 Finance Ministers and Central Bank Governors Meeting in Shanghai, east China, Feb. 26, 2016. (Xinhua/Li Xin)

SHANGHAI, Feb. 26 (Xinhua) -- China's finance minister on Friday suggested that structural reform was the best way to sustain economic growth in G20 countries.

Structural reform is crucial to a robust, balanced and sustainable economy, with governments working on coordinated top-down design, Finance Minister Lou Jiwei told the ongoing G20 Finance Ministers and Central Bank Governors Meeting.

Lou suggested removal of trade barriers and more encouragement for companies to invest.

China, he said, still has ample room for fiscal policy adjustment, is likely to raise the deficit ratio and will continue to cut taxes to support innovation and small businesses.

China raised its fiscal-deficit-to-GDP ratio to 2.3 percent for 2015, compared with the 2014 target of 2.1 percent, with the number expected to rise to 3 percent or more in 2016.

The finance ministry has plans to deal with mass redundancies as restructuring cuts capacity across a range of traditional heavy industries. Lou also pointed out that China's employment legislation needs to be improved to free up the labor market.