Chinese and global economies entering new phase of interaction

The latest issue of Qiushi journal carried an article by Li Xiangyang, deputy director and a research fellow of the World Economy and Politics Institute of the Chinese Academy of Social Sciences. The article says as Chinese economy is growing rapidly its pace of merging with world economy is accelerating. While it is being increasingly influenced by the world economy the outside world is also feeling its growing impact. The Chinese and world economies are entering a new phase of interaction.

The article says in terms of economic growth China's contribution to global economic growth is expanding. It is estimated that a third of the global economic growth between 1999 and 2003 was accomplished by the Chinese economy. Many international institutions have listed the "soft landing" of the Chinese economy as a key factor in their forecasts of world economic growth between 2004 and 2005.

In terms of market prices the impact of the Chinese economy also attracts the attention of the international community. The scale of China's foreign trade has jumped to the world's top three. This will inevitably influence the relation between supply and demand and market prices. Some in the international community, who harbor animosity toward China, advocate the "China threat theory" on this pretext. This is totally not in accordance with the truth. To ask China to push the growth of global economy while forbidding China from acquiring the needed energy and raw material is without common sense.

In terms of economic policy some policies of China have become the focus of international community. Meanwhile China is actively participating in the international coordination of economic policies. In 2004 China took part in the meeting of G7 finance ministers, which indicates that China's participation in the coordination of international economic policies has entered a new phase. It also means that China's economic policy-making has to meet higher requirement in the future.

By People's Daily Online