How far is China away from the crisis?
- Source: Xinhua
- [08:29 April 19 2009]
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One uncertainty is the grim global economic climate. The U.S. and European economies are struggling in the crisis, which means China has to seek more internal growth to make up for the loss in exports.
The first quarter continued to see a slash in exports, which declined 19.7 percent year on year. Exports used to be one of three major sectors driving the Chinese economy, but it contributed negative 0.2 percent to the country's economic growth in the quarter.
Existing problems made it more difficult for Chinese economy to stay away from the impact of global crisis.
Yao Gang, vice chairman of the China Securities Regulatory Commission, commented that China's economy is facing a key era that calls for upgrading in development pattern and adjustment of structure.
China's mission is not only to maintain stable economic growth, but also handle excess industrial production capacity, expand domestic consumption and reduce income gap, all of which demand sophisticated policies and persistent efforts from the government, Yao said at the BFA annual conference.
On April 15, China's Cabinet, the State Council, urged faster implementation of the two batches of government investment, and kicked off the third batch.
"Only approximately 30 percent of the scheduled investment has been injected into the Chinese economy," said Edgar Hotard, board chairman of Monitor Group (China). "If the rest 70 percent were also put into the economy, it would bring further growth."
Rolf D. Cremer, dean of China Europe International Business School, said China reacted more swiftly and decisively than expected, maintaining a relatively stable growth rate, which allowed more room for adjustment and reform.
Chinese economy was still on the growing path, with industrialization and urbanization acting as the two major growth engines, said Long Yongtu, secretary-general of the BFA.
"I have always believed that Chinese economy will stop its sliding trend in a comparatively short time and return on the track of stable and rapid development," he said.