The global financial crisis is not over but is just entering a new stage and implementing reforms is the only way to see it off for good, the Shanghai-based China Business News reports, citing Li Yang, vice president of the Chinese Academy of Social Sciences (CASS).

Li made the comments on Sunday at a CASS seminar on 2014's economic outlook. Through observing developed economies, it can be seen that the most difficult part of the crisis is over, he said, but the fundamental factors which led to the crisis have not disappeared. More importantly, most governments have used unorthodox measures to cope with the effects of the crisis, he said, and while they were designed to prevent the crisis from worsening, these measures have added to the burden for a recovery, making the process unclear and confusing.

Developed economies have a serious bias towards the consumer, with their economic structure relying too much on the service industry, weakening their manufacturing industry, Li said. An end to the crisis depends on whether the biased development model can be resolved, and clearly this has yet to be seen, he said.

The global financial crisis has shown high leverage in financing, therefore, deleveraging is a must to resolve it, but so far deleveraging has yet to be completed, Li said.

Now, the financial crisis has entered a second stage, with developed economies stabilized but emerging economies beginning to feel the heat, Li said.

China's economy entered a new stage of medium-to-high economic growth in 2009, according to Li. Although China's current economic growth of 7.5% or 7.6% is still high, it is a major drop from the previous double-digit growth, which will have a massive effect and which will take years to be absorbed, he said.

The oversupply of property will be a "cancer" for China's economy, not to mention extraordinarily high property prices, Li said.

The problems of China's financial industry, such as low liquidity, high interest rates, difficulty in seeking financing and expensive financing, must be resolved through comprehensive financial reforms, he said.

The heavy debts of local governments are also a big problem for China. "The only way to see an end of the crisis is to implement reforms," Li said. "Whichever country has the strongest determination to implement the reforms will have the edge in the future."