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China Daily Website

Hu: Chinese economy will be 'stable and robust'

Updated: 2012-09-09 07:25
By Wu Jiao in Vladivostok, Russia and Zhao Shengnan in Beijin (China Daily)

China's domestic demand, overseas investment will create jobs for the whole world

Hu: Chinese economy will be 'stable and robust'

Russian President Vladimir Putin, third left, and President Hu Jintao, third right, shake hands with delegates during their meeting at the Asia-Pacific Economic Cooperation forum in Vladivostok, on Sept 8, 2012. APEC leaders' meeting in Russia's Far Eastern port city of Vladivostok takes place on Saturday and Sunday. [Photo/Agencies]

President Hu Jintao pledged on Saturday to keep the Chinese economy stable and robust, calming fears that a slowdown by the world's second-largest economy might further hamper a struggling global market.

In a speech ahead of an annual forum of Asia-Pacific leaders held at the Russian Pacific port of Vladivostok, Hu also acknowledged that China's economy faced "notable downward pressure", with "some SMEs having a hard time" and "exporters facing more difficulties".

Hu vowed to continue to pursue a proactive fiscal approach and a prudent monetary policy, and maintain balance by keeping steady and healthy growth, adjusting economic structure and managing inflation.

China "will boost domestic demand as well as maintain basic price stability", he added.

Analysts said China will continue contributing to the world economy through opening more sectors to foreign investment and balancing its investment and consumption structure, but the largest developing country in the world also needs international support.

Hu: Chinese economy will be 'stable and robust'
Special coverage: Hu attends APEC Summit
Asia's biggest economy expanded 7.8 percent during the first half of the year after the government moved to counter inflation and surging property prices.

The 7.8 percent growth, though lower than previous periods, still outperformed many major economies which have been struggling with gloomy prospects.

Wang Yiming, vice-president of the Academy of Macroeconomic Research of the National Development and Reform Commission, said the slowdown of growth does not necessarily means diminishing economic strength or business opportunity in China since the country's economic aggregate has been larger and more solid than before.

Yet the world, especially Asia-Pacific economies, is watching the performance of the economic engine and weighing the impact, especially as sluggish world recovery faced continuing challenges.

Noting that these were having an impact in the Asia-Pacific, Hu also said that China's development will create opportunities for the development of the Asia Pacific as the world faces the arduous task of overcoming major difficulties in order to achieve full recovery and sustained growth.

Chinese direct investment overseas is estimated to surpass $500 billion during that five-year period.

"All this will create many business opportunities and jobs for both the Asia Pacific and the world, contribute to global growth and provide valuable opportunities for APEC members and particularly the business community," said Hu.

Hu: Chinese economy will be 'stable and robust'
The increasing GDP and income per capita will further shift China from an investment-centered country to a consumption-centered one, which means China needs more imports from the other countries in the future, said Wang.

China will further open up sectors including service, infrastructure and culture to the world, but first, it has to improve its management for foreign investments flooding into these segments, Wang said.

China has already made great contribution to the world economy and stability while facing increasing trade protectionism - a common measure amid recession, said Xiao Lian, an expert on economic studies at the Chinese Academy of Social Sciences.

Developing countries like China have their own problems to address, Xiao said. "But if the developed countries continue their protectionism and discriminatory regulations, China's economic slowdown will eventually threaten the development of the whole world."

 

 
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