Since the beginning of the year, every time China has released some weaker-than-expected economic data, certain analysts would predict that the Chinese economy will suffer a hard landing, and China will drag the world economy into another recession.
China’s economy has maintained a high average annual growth rate of 11 percent over the past 30 years. After long-term rapid growth, any economy will face the challenge of transforming its growth model and shifting the focus from quantity to the quality and sustainability of economic growth. A moderate economic slowdown is inevitable during this process.
Several authoritative international institutions have expressed optimistic views toward the Chinese economy in their global economic outlook reports, saying that China remains an important economic growth pole in the world.
Famous British columnist Martin Wolf said that the world has a huge interest in a shift of China’s economy toward more balanced growth.
All of the international attention devoted to China’s economic data reflects the great importance of the Chinese economy and the world’s expectation that China will further promote global economic growth amid uncertain economic outlook in Europe and the United States.
China has made significant contributions to the world economic recovery after the global financial crisis.
Admittedly, as China’s economy remains highly dependent on foreign trade, the deteriorating European debt crisis and weak U.S. economic recovery will undoubtedly affect China’s economic growth.
However, unlike the European and U.S. governments that are mired in debt and can do little to improve their economies, the Chinese government enjoys a sound financial position and stable fiscal deficits with much lower inflation, and thus has much room to implement macro-control policies.
