According to the findings of the ADB study, policy improvements in areas such as education, research and property rights could instead increase GDP growth by at least 1 percentage point over that period. Chinese measures to achieve more balanced growth have also included, over the past five years, very important exchange rate reforms.
Both in July 2005 and in June 2010, the ECB and other euro area authorities publicly welcomed China’s moves towards a more flexible exchange rate regime. The potential for exchange rate adjustment implied by these decisions needs to be further exploited.