Renowned Chinese economist Li Yining said on Monday that China's economy will continue to grow steadily after the Beijing Olympics. He also said the Chinese yuan will keep appreciating in small increments.
Li Yining, CPPCC Member & Economist
As a CPPCC member, Li Yining said there is still a lot of room for the Chinese economy to keep growing, considering tertiary industries only account for 40 percent of GDP. That's lower than the international 70 percent. He has ruled out the possibility of an economic slow down.
Li Yining, CPPCC Member & Economist said "According to our analysis, we can say the Chinese economy will not suffer a slowdown after the Olympics. It is impossible."
Li believes the advantages outweigh the disadvantages of an appreciation of the yuan by small amounts. He said the yuan's appreciation could curb over-liquidity and stimulate Chinese exporters to improve technology and build their own brands.
Li Yining said "As long as the advantages outweigh the disadvantages, I would say there is still space for the yuan to appreciate slightly and steadily."
Li Yining also discussed the stamp duty that is currently imposed on both buyers and sellers in the stock market.
Li Yining said "Imposing the duty on both sides is unreasonable. I won't comment on whether the duty should be adjusted, that's another question. But I believe a one-side levy of the stamp duty is quite necessary given the current situation."
As for the government target to keep the rise in consumer price index at 4.8 percent this year, Li predicted that goal could be reached as long as international oil prices remain steady and the country is not hit by severe weather.
(CCTV March 11, 2008)