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China should desist from reversing market reform and embrace globalization despite the threat of rising trade barriers, economists warned the government yesterday.

The discussion on globalization and China's strategy was organized by the Chinese Economists50 Forum, a Beijing-based think-tank.

"To deal with financial crisis, we need to continually chart internal reforms and embrace globalization," said Liu He, deputy director of the Office of the Central Leading Group on Finance and Economy Work.

The discussion was prompted by the realization that the financial crisis had spawned two divergent views on the economy within China. One is that Keynesianism is the key solution for China and government investment should replace that from the private sector. The other is that the government should change its preconceived strategy on dealing with the economy and focus only on coping with the crisis.

"These trends are wrong," Cai Fang, member of the Standing Committee of the National People's Congress told China Daily. "In China, there is too much government intervention in economic activity."

The developed economies too need to correct their market failures, Cai said.

During the three-hour debate, at least 10 economists were agreed that China should try harder to increase exports and take steps to boost domestic consumption in the coming years.

"Domestic consumption is vital but it is too early to give up on the global market," said Xia Bin, senior economist with the Development Research Centre of the State Council. "China can still benefit from globalization."

He cited the UK and the US as examples. These countries accounted for about 19 percent and 17 percent, respectively, of the global trade volume during the 50s and the 60s. China's foreign trade is equal to just 7 percent of the world total now, Xia said.

"Given China's competitive advantages, it should encourage exports for the next two decades," said Long Yongtu, secretary-general of the Boao Forum.

He also came down heavily on coastal governments for encouraging the manufacturing industry to shift to the middle or western regions within China.

This may cause hardship to millions of migrant workers who are already employed in those regions and who would have to shift base if the industries move.

"This will be a failure for China from the industry development and urbanization perspectives," said Long.