Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
China able to expand over 8% for long time
Adjust font size:

China's economy can maintain a steady growth above 8 percent for a relatively long period because of a stable society, a vast market and ample capital, said Cheng Siwei, an economist and former vice chairman of the Standing Committee of the National People's Congress.

"China's economy can stay in the fast developing track if we work hard and pay enough attention to existing problems," Cheng said at a three-day forum with the theme of "Economic globalization and the choice of Asia: transition, growth and welfare" yesterday in Shanghai.

"Social stability is crucial to economic development while China has a market of 1.3 billion people, which creates a huge consumption power," said Cheng. "Meanwhile, China's foreign reserves have reached US$1.68 trillion, and it has built up an ample capital pool."

China also beefed up its efforts to improve education and expand its coverage, which paved the way for sustainable economic development, he said, but added that there were problems China could not afford to ignore.

One of them was the yawning gap between the rich and the poor. The income of urban residents has tripled that of rural households while the purchasing power in cities was four times larger than that in rural areas.

China faced increasing pressure to protect the environment and in securing raw materials and resources for its economy. It also lacks a large pool of senior professionals in finance and management.

"For example, we buy a lot of the United States treasury bonds. It means appointing them (US bond managers) to manage our assets and we only gained a little bit of interest," said Cheng. "We are trying to work on such problems."

Cheng estimated China's per capita GDP can reach US$3,000 by 2010, US$5,000 by 2020 and US$10,000 by 2049, given its economic expansion and a stronger yuan.

(Shanghai Daily May 28, 2008)

Tools: Save | Print | E-mail | Most Read
Pet Name
China Archives
Related >>
- WTO: China's GDP-doubling target achievable
- Tight policy to remain unless GDP below 9%
- GDP grows faster than expected
- Slowdown no reason to spell gloom for growth
Most Viewed >>
- China's emerging influence: threats for the EU?
- Auto China 2008 staged in Beijing
- South Korean company to buy into Sinopec project
- Energy, agricultural goods supply must be ensured
- Gov't to cut import duties on some food, medicine
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?