World experts upbeat about stability, resilience of Chinese economy

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BEIJING, Oct. 14, 2018 (BSS/Xinhua) – Amid complicated international
landscape and new changes in China’s domestic economy, experts around the
world believe that the Chinese government has sufficient policy tools to tap
its inherent dynamism so as to secure robust and resilient economic growth.

These remarks came following the Chinese government’s recent proposal of a
target to “stabilize the employment, finance, foreign trade, foreign
investment, investment and expectations”, collectively known as the “six
stabilities”.

Since the beginning of this year, despite fluctuations of certain economic
indicators, the Chinese economy has registered stable growth, with the four
major macroeconomic indicators of economic growth, employment, CPI and
international balance of payments basically meeting expectations.

In its latest World Economic Outlook report released on Oct. 8, the
International Monetary Fund (IMF) has kept China’s economic growth forecast
unchanged at 6.6 percent.

IMF Chief Economist Maurice Obstfeld recently said that the Chinese
economy saw robust performance in the first half of this year, and that the
recent figures which might not be so ideal are still in line with
expectations, considering that measures such as strengthening financial
supervision and preventing risks would drag down the economic growth by a
certain degree.

Changyong Rhee, director of IMF’s Asia and Pacific department told Xinhua
that the slowdown in China’s economic growth is a result of the government’s
initiative to deleverage and regulate the economy, which is in fact a “high
quality” slowdown.

Rhee expressed confidence that the Chinese government has sufficient
policy tools to stabilize economic growth and offset negative impacts from
the economic and trade frictions with the United States, but meanwhile,
deleveraging should forge ahead to ensure more stable and resilient growth in
the medium term.

Subhomoy Bhattacharjee, a consultant with the Research and Information
System for Developing Countries based in India, said China’s economy, which
has started to shift from high speed growth to medium-high speed growth, has
stepped into the deep waters of economic restructuring, where certain
sufferings and pains are inevitable.

The Chinese government embraces change and has a mature and sensible
understanding of economic development, as indicated by its economic policy
adjustments in recent years, the expert said, adding that these adjustments
will benefit China’s economy in the long run.

Even though the favorable international environment plays a role in
China’s economic success, Bhattacharjee said, the country’s achievements
should be mainly attributed to the inner dynamism generated by its domestic
policies.

Charles Onunaiju, head of the Center for China Studies in Abuja, Nigeria,
said the Chinese economy is stable with an internally integrated and
coordinated structure which cannot easily be disrupted by external shocks.

China’s economy is undergoing the supply-side reform and structure
adjustments, said Onunaiju, adding that the economy is reducing its
dependence on exports and manufacturing industry and establishing a growth
mechanism driven by innovation and domestic consumption.

As far as China’s relevant authorities maintain the momentum of its
structural adjustments, maintain the momentum of innovation, he said, China
will remain largely inoculated from the vagaries of external shocks.