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Financial officials reiterate confidence in Chinese economy

Updated: Feb 22,2016 7:28 AM

At present, China’s economy faces downward pressures amid a complicated international situation. The world’s second-largest economy has drawn attention both at home and abroad.

In 2015, China’s economy posted a 6.9-percent growth, and economic operation is running on a stable track. But there are still some speculations about the figure itself, on whether China’s economic slowdown will be a drag on world economic growth, and whether China’s economy will get a hard landing.

Xu Shaoshi, head of the National Development and Reform Commission, dispels such speculation by saying that China has a rich material foundation, great market demand, vast regional space, improved quality on factors of production, and its macroeconomic regulation is constantly being enhanced. With these advantages, China will prove its ability to conquer any difficulties.

Xu also stressed that China has supported rather than dragged the world economy. He listed a series of numbers: China’s 6.9 percent economic growth is one of the fastest among the world’s major economies. China’s gross domestic product (GDP) accounted for 15 percent of the world’s total; China also surpassed the US in its contribution to world economic growth, with 25 percent.

People’s Bank of China Governor Zhou Xiaochuan also gave a concise summary on the situation of China’s economy. He said that China’s economy is still running within a reasonable range, and we have the confidence and patience to wait for the data to speak.

“Under the background of economic fluctuations in international financial markets and amid slowdowns in the world economy and global trade growth, the fact that China can still keep a high-speed growth of 6.9 percent is rather rare in the world,” said Zhou.

As for the decline in China’s GDP growth rate, Zhou said it resulted from the sluggish growth in global economy. It is also the result of the Chinese government’s active adjustment of the economic structure, which is favorable to achieve a more sustainable and higher-quality growth, and conducive to realizing a global economic rebalancing.

He also stressed that the Chinese yuan has no basis for further depreciation, as China has more than enough foreign exchange reserves to ensure the international balance of payment and the stability of the Chinese currency.

Some institutions and media have also questioned the data of China’s GDP growth rate. Xu Xianchun, vice head of China’s National Bureau of Statistics, responded that those who say China’s GDP growth is overvalued are using unscientific and incomplete information, thus the conclusions do not conform to the actual situation in our country.

Chinese Vice-Finance Minister Zhu Guangyao acknowledged in an article that downward pressures on the global economy and fluctuating capital flows are negatively affecting China and other BRICS countries: Brazil, Russia, India, and South Africa.

However, he insisted that despite the current difficulties of BRICS economies, their economic fundamentals remain unchanged and better cooperation will help them tackle global challenges.