The United Kingdom government has demonstrated its in-depth understanding and confidence in China’s economy at the time when the country is faced with an economic slowdown.
Commercial Secretary to the UK Treasury Jim O’Neill and former chief executive at UK Trade & Investment Andrew Cahn said that the course of China’s economic development remains consistent with expectation, while overseas investors show great confidence in the Chinese market.
O’Neill predicted in 2009 that the BRICS market is on course to overtake that of the G7 in size by 2032. Reviewing the prediction, he said despite China’s overall economic slowdown in 2015, the 6.9 percent GDP growth is still beyond the reach of most developed countries.
Talking of the challenges posed to the Chinese economy in the future, O’ Neill said the UK recognizes and supports the endeavor which China has made in carrying out supply-side reform. The move is favorable to the Chinese economy and will bring new momentum to business and trade between the countries. The UK will also provide outer support for the reform, in a bid to help China achieve economic transformation in the future, he said.
As to the fluctuation in the Chinese stock market and foreign exchange market at the beginning of this year, Cahn said the financial market is in a state of constant fluctuation and no watchdog in any country can find a solution to evade such risk. The problems that exist in the Chinese market are not the result of defect management.
Cahn also said that China has made clear its future direction in financial reform, which indicates that it will bring more driving force to the market. Fluctuation itself is only a minor consideration in the overall reform of the country, which is not supposed to be excessively concerned.
He pointed out that as China had sustained high-level economic growth in the past 30 years, the slowdown in GDP growth and fluctuation in the financial market are conformed to market rules, which will not lower overseas investors’ confidence. He added that the UK’s main trade with China is service driven, and the adjustment in China’s economic structure will drive the development of the service industry. In his view, China’s slowdown in economic growth will not exert a negative impact on bilateral trade between the countries.