China’s “new normal”, its continued growth and positive impact on the global economy were highlighted by former Italian prime minister Romano Prodi in an article in a leading Italian newspaper.
In the Il Messaggero article, Prodi said China had achieved great success in the past few decades, and steady growth in China had become the driving engine of the world economy.
The slowdown in the Chinese economy was because of structural adjustment and transformation to improve efficiency and qualified growth, Prodi said, and he believed that the economy’s transformation and huge investment abroad will help market integration between China and the international community. This ensured that a bright future for the Chinese economy could be predicted, Prodi said.
Just a few years ago China occupied a marginalized position when people discussed the world economy, Prodi said, but now China contributed one third of the increase in the global economy and it has become the driving engine for world development, regardless of the perspective of imports or exports.
Falling prices for oil and raw materials did have a negative effect on the Chinese economy, Prodi said but argued that people should consider different aspects of the economy, not just concentrate on the slowdown.
With the service sector accounting for more than half of China’s GDP, it has become the driving force of the world’s second-largest economy, he said, adding that the gap in labor costs between China and developed countries was shrinking. Thus, China should invest more in scientific institutions and innovative products to gain a competitive edge and increase its share in the international market, he said.
China’s Belt and Road Initiative and the Asian Infrastructure Investment Bank will further open China’s market to the world and when China accomplished its economic transformation, it will lead the world economy into a bright future, he said.