The risks faced by China’s economy are “not that scary,” and the government is confident it can head off the dangers, Chinese President Xi Jinping (習近平) told global business leaders yesterday to dispel worries about the world’s second-largest economy.
In a speech to chief executives at the APEC CEO Summit, Xi said even if China’s economy were to grow 7 percent, that would still rank it at the forefront of the world’s economies.
China’s economy has had a rocky year. Growth in the third quarter slid to a low not seen since the 2008 global financial crisis, dragged by a housing slowdown, softening domestic demand and unsteady exports.
“Some people worry that China’s economic growth will fall further, can it climb over the ridge? There are indeed risks, but it’s not so scary. Even at growth of around 7 percent, regardless of speed or volume, [we] are among the best in the world,” Xi said, adding that China’s economy remained “stable.”
The remarks from Xi came a day after data showed annual growth in Chinese exports and imports cooled last month, in another sign of fragility in the economy that could prompt policymakers to take further action to stoke growth.
Xi, who would sign off on any interest rate cut in China alongside the nation’s elite decisionmaking Politburo Standing Committee, did not comment on the policy outlook, but stressed that his government was focused on reforms and that China was open for business.
Underlining the nation’s growing clout as an exporter of capital, he said China’s overseas direct investment was expected to hit US$1.2 trillion in the next decade.
After three decades of almost uninterrupted double-digit growth, China’s economy has lifted several hundred millions of Chinese from abject poverty, but also polluted the nation’s air, land and waterways.
The destruction of China’s environment and a yawning income gap has led Chinese authorities to promise to enact sweeping social, financial and economic reforms in the nation which would be the most ambitious in three decades.
“These reforms are gradually being put into effect project by project,” Xi said. “Once the bow is drawn, the arrow cannot be put back in the quiver.”
Xi also sought to address concerns that China’s growing economic and diplomatic prowess could constitute a threat beyond its borders, saying that China is willing to have friendly relations with its neighbors.
China has territorial disputes with many of its neighbors and has been much more aggressive in enforcing its claims in recent years.
“China’s development brings enormous opportunities and benefits to the Asia-Pacific [region] and the world ... opportunities are lasting and limitless,” he said.
APEC finance ministers last month warned of increasing “downside risks” to the global economy, after China’s growth data came out, and called for the regional grouping to take the lead in bolstering growth.
Leaders from APEC’s 21 member economies, including US President Barack Obama, are scheduled to hold a two-day summit beginning today.
The summit is expected to end with a joint communique tomorrow reiterating regional commitments to work toward trade liberalization in the vibrant Pacific Rim.
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