The annual High-tech Expo is a platform on which new ideas blend and collide. And at the 7th China Beijing International High-tech Expo (CHITEC), what are eminent economists from overseas discussing?

Jia Qinglin visits high-tech expo

No over-inflation for China--Josef Ackermann, president of Institute of International Finance and CEO of Deutsche Bank

China is not troubled by over-inflation, at least not for the moment, said world famous economist Josef Ackermann in a thematic speech. A more accurate judgment over the current situation, he believes, is that China is facing the risk and possibility of over investment, but has not so far suffered from the problem of overheated economy which will lead to uncontrollable inflation. Consumption prices did rise in recent months, but they were much lower than the inflation rates in late 1980s and early 90s. Today's inflation is actually caused by fluctuation of food and energy prices. A "too slow braking" may increase the possibility of inflation, Ackermann pointed out, but "too fast a halting" may soon suffocate the economic growth, so the authority should always take a circumspect attitude.

No hard landing for Chinese economy--Hu Zuliu, general manager of Goldman Asia

"A hard landing for the Chinese economy is unavoidable", this is too pessimist a statement filled with irrational fear.

High-tech expo (1)

First, confusion exists in academic and policy-making circles on whether or not the Chinese economy is already overheated in an overall, serious manner. The word "overheated" is usually misused. Strictly speaking, an economy can only be called overheated when the total demand far exceeds the total supply, which leads to a soaring inflation and serious imbalance of both internal and external macro-economic control.

The modified GDP growth rate of China in the first quarter was 9.8 percent. This is of course a very high percentage, but actually it is nothing to be surprised at. The average growth rate for the Chinese economy was 9.8 percent for the past 25 years, it sounds quite high but the potential growth rate remained much the same. So we should not say the economy is seriously overheated. China has good records regarding macro-economic regulation and control. The country is capable of effective macro control to avoid a hard landing.

"China model" different from that of the West--Robert Mundell, winner of Nobel Economics Prize

"Father of the Euro" Robert Mundell chose "the balance of Chinese macro-economy" as the subject of his speech. He doesn't agree that China's economy is already overheated, but warns people that the Chinese cannot be measured with the western economics theories.

We cannot say generally it's overheated or not, Robert Mundell said. It's difficult because we have different explanations on being overheated. First of all, "overheated" is a figure of speech, which is obviously not accurate or precise enough when using it to describe a scientific model. He believes that both "hard landing" and "overheated" are figurative speeches, and the main point lies in the distance between demand and supply.

7th China Beijing International High-tech Exposition kicks off (1)

All we are talking on solving overheated economy, inflation and unemployment rate are based on western economics, but China has a different model. China has a different labor market, which is different from that in the United States, in Britain and Euro area and in Japan.

Stability and predictability top all--Klaus Schwab, chairman of World Economic Forum

The international society is used to paying much attention to high economic growth rate, but Claus Schwab believes that balanced, comprehensive and coordinated development is more important for China's future. China's unique development experience of "coordinated development" has been called by experts as "Beijing consensus" to differ it from "Washington consensus".

Stability and predictability absolutely top all, Claus Schwab stressed in his speech. Stability refers to that of economic and policy levels. On the economic level a macro-economic environment must be built. On the policy level stable and value-creating currency must be guaranteed, and inflation and interest rate must be kept low. All these come from cautious fiscal and monetary policies. Schwab believes that China has achieved a lot in this regard. Keeping a stable macro-economy is apparently not an easy thing, especially for China who has a tremendous economic scale. Far-sightedness is required when exercising regulation and control, and flexible adjustment on the rise and fall of economic periods is also needed.

By People's Daily Online