China has promising growth prospects: economist

0 CommentsPrint E-mail Xinhua, June 2, 2010
Adjust font size:

China has promising growth prospects and should not be blamed for world imbalances, says Danny Quah, a renowned British economist.

"Emergency financing that was placed in the Chinese economy to counter the downturn from the 2008 global financial crisis was the right thing...The imbalances is a global problem, not a China problem," said Quah, a professor at the London School of Economics and Political Science.

China did the right thing in infusing its economy with fiscal stimulus, Quah said in a recent interview with Xinhua.

He also declined to describe the ballooning real estate prices as a bubble, pointing out "the strong fundamentals" of China's economy.

He said the expansion of China's housing construction will be proved useful eventually, given the fact that "China is still engaging in the task of moving hundreds of millions of people from rural areas to urban China to continue to power its manufacturing and industrial progress."

"So I would not describe it as a collapse of real estate bubble, we can look forward to a rationalization of housing and real estate prices," Quah said. "The improvement and expansion of housing stock will play an important role in continuing to move the Chinese economy forward."

"I think Chinese fundamentals will continue to be strong. And a little bit of high inflation, as long as it doesn't break out into some kind of runaway high inflation, is probably no bad thing," he said. "We will get it under control again as the Chinese government did previously."

On allegations that China deliberately keeps its currency RMB weak to obtain unfair advantages in trade with countries like the United States, Quah said people who draw such a false conclusion are misguided.

"The United States is running a trade deficit not just against China. It is running a trade deficit against almost 100 other countries," he said. "China is not unique in how it is exporting more to the United States than it's importing."

The U.S. government was beginning to run a large trade deficit long before China's trade surpluses started grow, he added.

"If you take the ratio of China's bilateral trade surplus against the U.S. as a fraction of the U.S.' overall bilateral trade deficit against all of the countries, it has remained constant over the last 15, 20 years," Quah said.

He said these facts clearly show that the appreciation of RMB will not end the U.S. trade deficit, instead it may produce unexpected repercussions upon the U.S. economy and the rest of the world.

Quah said RMB appreciation would also force American consumers to purchase goods from other nations at higher expenses.

"Revaluation proponents should be reminded that manufacturers of the U.S. rely on the inputs from China," he said. "If China's commodities get more expensive, it would hurt the U.S. industry, and hundreds of thousands of jobs will be destroyed."

When asked what is behind the world imbalances, Quah said: "The direction of the causality I think is much more compelling from the behavior of the U.S. economy to the rest of the world than it is from China to the U.S. economy."

"The inability of the dollar to adjust the world imbalance contributes much to the financial crisis," he said.

"If you believe this alternative of this pattern of causality, then how we fix the problem of trade deficit imbalances is to fix the U.S. economy," he added.

Quah said the U.S. role in the world economy is no longer as optimistic as it was. Other parts of the global economy are actually growing faster and already having a much bigger role in the global economy. American consumers have to be more careful with their borrowing behaviors, he said.

"When they do that, I would argue, a more rational attitude toward savings and consumption. That would restore the world pattern of global balances," he said. "We would need other things as well, but I think that is the single largest cause for global imbalances."

Quah said the "global economy's center of gravity," a quantified indicator showing the global distribution of economic activities, has been moving 2,000 km eastwards for the past three decades, indicating the increasing importance of the East in the world economy.

However, "it may take decades if not centuries to see a shift of leadership from the West to the East with the reconfiguration of political power and soft power paralleled with the economic power," he said.

Print E-mail Bookmark and Share

Go to Forum >>0 Comments

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter
主站蜘蛛池模板: 亚洲国产成人va在线观看| ww亚洲ww在线观看国产| 欧美videos另类极品| 人久热欧美在线观看量量 | 国产精品久久久久aaaa| 99在线热视频只有精品免费| 婷婷色在线播放| 两个小孩一起差差| 日日干日日操日日射| 久久精品国产精品| 杨玉环三级dvd| 亚洲午夜久久久久妓女影院| 欧美色欧美亚洲高清在线观看| 人人妻人人澡人人爽人人精品| 精品久久中文字幕| 吃奶呻吟打开双腿做受视频| 色综合综合色综合色综合| 国产国语对白露脸正在播放| 精品丝袜国产自在线拍亚洲 | 欧美videos娇小| 亚洲午夜精品一区二区| 欧美激情另类自拍| 亚洲第一区在线| 狠狠爱天天综合色欲网| 免费在线观看你懂的| 精品久久久中文字幕人妻| 午夜福利一区二区三区在线观看| 色婷婷综合在线| 国产一级黄色毛片| 蜜臀av无码人妻精品| 国产区卡一卡二卡三乱码免费| 黄又色又污又爽又高潮动态图| 国产放荡对白视频在线观看 | 成人深夜视频在线观看| 中文字幕日韩有码| 无人视频免费观看免费视频| 久久久精品人妻一区二区三区蜜桃| 日韩在线视频线视频免费网站| 久久精品无码专区免费青青| 日韩精品专区在线影院重磅| 九九九国产视频|