China plays a positive role in world economic growth
- By Zhang Yongjun
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E-mail China.org.cn, March 1, 2016
Direct investments from the Chinese companies to 49 countries along the routes of the "Silk Road Economic Belt and Maritime Silk Road" initiative reached US$14.82 billion, registering a year-on-year increase of 18.2 percent. Most of the countries are underdeveloped and troubled with constant outflow of foreign capital that has greatly affected the indigenous economic performance.
Merits and value of the RMB
China's contribution to the stable world economic growth can be additionally attributed to the stability of the RMB, which did not depreciate as much as many other currencies.
In 2015, the exchange rate between the Euro and U.S. dollar depreciated by 16.5 percent and the Japanese yen to U.S. dollar by 12.5 percent. The depreciation even expanded to India, as the Rupee to U.S. dollar rate fell by 3.9 percent.
As a result, the actual exchange rate of the RMB to U.S. dollar considerably appreciated. According to the Bank of International Settlement (BIS), the average monthly index of the RMB-US$ exchange rate appreciated by 9.7 percent.
Despite the decline of China's exports to a certain extent, the country did not choose seductive policies for the depreciation of its currency; instead, it took on the responsibilities of a major country seeking stability of the world economy.
Apparently, rather than affecting the global economy, the Chinese economy has played a significant role in pushing forward its growth.
The author is the deputy director of the Economy Research Office of the China Center for International Economic Exchanges.
The article is first published in Chinese and translated by Wu Jin.
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.
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