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China must move towards market economy, says World Bank

China must relax its grip on industry and move towards a free-market economy, the World Bank said on Monday in a report that forecast the country would become the world’s largest economy before 2030.

Judging China to be near an inflection point in its economic growth, the World Bank called on Beijing and its incoming leaders to overhaul the structure of the world’s number two economy to keep income and productivity rising in years ahead.

An executive summary of the 400-plus page China 2030 Report, made public by World Bank president Robert Zoellick, had six broad recommendations for Beijing: strengthen a market-based economy, foster innovation, go "green", provide social security for all, improve the fiscal system and seek mutually beneficial relations with the world.