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Will China's economic growth change the world economic pattern? (2) |
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17:28, September 11, 2009 |
Wen Jiabao, premier of China's State Council, attended the launch ceremony of the Summer Davos Forum on September 10 and said in his address that over the past year, the world economy has experienced the most severe challenge since the Great Depression. China, however, has risen up to challenge and dealt with the difficulties with full confidence. It has achieved initial results and economic negative growth has been curbed.
According to statistics, in the first half of 2009, China's GDP growth rate reached 7.1 percent and investment continued to increase. With consumption growing rapidly and steadily, the role played by domestic demand to stimulate economic development is strengthening gradually; in the first seven months of 2009, 6.66 million people were newly employed and the income of urban and rural citizens increased, creating a stable society.
According to Pang Kaige, China CEO with the Standard Bank of South Africa, the largest bank in Africa, despite that the global financial crisis plunging the world economy into recession, China's economy stands out and has become the stabilizer of international economic development, which has also opened new space for China-Africa cooperation.
As for this, John Varley, vice president of Barclays Capital says that China issuing a package of stimulus plans worth 4 trillion yuan will not only help the country cope with the financial crisis, but also indicates that China has taken on responsibilities as a power in the world arena.
The international community is becoming more confident in China's economic growth. According to Robert Zoellick, president of the World Bank (WB), who visited China earlier this month, the WB has recently increased the rate of China's economic growth to eight percent. This is the third time that the WB has raised their expectation of China's economic growth.
From casting doubt over whether China could reach its goal of eight percent growth to currently believing that this will be no problem, the confidence of the international community in China is reinforced by a set of encouraging statistics.
Will China's economic growth change the world economic pattern?
"Who will become the driving force behind global economic growth in the future, the U.S., China, Japan, India or Europe?" This was a special multiple choice question proposed to members participating in an interactive meeting themed "Asian economy outlook" at the Summer Davos Forum held in Dalian.
"This is a very interesting multiple choice question," Zhao Xiaoyu, vice president for operations of the Asian Development Bank (ADB), told Xinhua News Agency reporters once the interactive meeting was over.
"Who will become the driving force behind global economic growth in the future?" This question proposed at the Davos Forum, which is famous for its innovation and advanced consciousness, reflects a hot topic attracting worldwide attention since the outbreak of the financial crisis: will China's rapid and steady economic growth change the world economic pattern?
A survey report published at the Summer Davos Forum being held in Dalian between September 10 and 12 showed that over 70 percent of respondents believe that by 2020, Asia led by China will become the most influential region among global economies. This survey report involved 130 worldwide important business leaders, financial personnel, scholars, government officials and people from supervisory institutions.
This week's issue of the U.S. Fortune magazine used a formula to illustrate the global influence of the Chinese economy: Sinopec plus the Industrial and Commercial Bank of China (ICBC) equal ExxonMobil Chemical plus Microsoft plus Luxembourg's gross domestic product (GDP).
This formula shows the respective growth and decline of the strengths of Chinese and US enterprises, but its deep underlying meaning is that the financial crisis is shifting world power to emerging markets led by China.
This view was agreed by most Davos participants. "The world economy is recovering and it started from China," said Klaus Kleinfeld, Alcoa president and CEO attending the Summer Davos Forum in Dalian, in an interview. U.S.-based Alcoa is the world's largest aluminium producer. Kleinfeld also said that at present, China is the first country to show achievements in economic recovery worldwide, which is mainly thanks to a series of timely and effective economic stimulus measures launched by the Chinese government.
Wen Jiabao, premier of China's State Council, attended the launch ceremony of the Summer Davos Forum on September 10 and said in his address that over the past year, the world economy has experienced the most severe challenge since the Great Depression. China, however, has risen up to challenge and dealt with the difficulties with full confidence. It has achieved initial results and economic negative growth has been curbed.
According to statistics, in the first half of 2009, China's GDP growth rate reached 7.1 percent and investment continued to increase. With consumption growing rapidly and steadily, the role played by domestic demand to stimulate economic development is strengthening gradually; in the first seven months of 2009, 6.66 million people were newly employed and the income of urban and rural citizens increased, creating a stable society.
According to Pang Kaige, China CEO with the Standard Bank of South Africa, the largest bank in Africa, despite that the global financial crisis plunging the world economy into recession, China's economy stands out and has become the stabilizer of international economic development, which has also opened new space for China-Africa cooperation.
As for this, John Varley, vice president of Barclays Capital says that China issuing a package of stimulus plans worth 4 trillion yuan will not only help the country cope with the financial crisis, but also indicates that China has taken on responsibilities as a power in the world arena.
The international community is becoming more confident in China's economic growth. According to Robert Zoellick, president of the World Bank (WB), who visited China earlier this month, the WB has recently increased the rate of China's economic growth to eight percent. This is the third time that the WB has raised their expectation of China's economic growth.
From casting doubt over whether China could reach its goal of eight percent growth to currently believing that this will be no problem, the confidence of the international community in China is reinforced by a set of encouraging statistics.
In the context of global recession, in 2008, China's economy grew by nine percent, contributing more than 20 percent to the world economy. Since the start of this year, China's GDP rebounded from 6.1 percent in the first quarter to 7.9 in the second quarter, and is gradually on the path of recovery.
However, in terms of the rapid growth of China's economy, Davos Forum provokes thinking about the development modes of Asian countries including China; something which has become one of the most important topics this year.
According to Stephen Roche, Chairman of Morgan Stanley Asia, who took part in the forum, the urgent task that China faces is accelerating the transformation from an investment-and-export driven economy to a consumption-driven one. "Only when China's economic growth mode becomes more balanced can China become the engine and stabilizer of international economic growth in a real sense, bring more opportunities to global market development."
During the forum, Sha Zukang, United Nations deputy secretary-general, told the media that in light of the fact that China is still a country with a low per-capita income, at present China cannot be expected to lead the development of the world economy. "For a long period of time, European countries and the U.S. will continue to be the main driving force in the development of global economy."
According to a research report of the ADB, in recent years China's share in the export market of the world's seven largest industrial countries has increased notably, and the further promotion of domestic demand in China will help change the one-way reliance of Asian developing economies on European and U.S. markets, thus forming a new pattern of a two-way balanced flow of trade.
"In the current complicated development pattern of the global economy, both China and the U.S. play an important role of engine. The driving force propelling the growth of world economy cannot be accomplished by a single country," said Zhao Xiaoyu.
According to some experts, for China it does not matter whether the country is the leading engine in the growth of world economy; instead, what is important is what kind of approach China takes in terms of future development. This will not only significantly impact the global economy, but will also have far-reaching significance for China's sustainable development.
In the context of global recession, in 2008, China's economy grew by nine percent, contributing more than 20 percent to the world economy. Since the start of this year, China's GDP rebounded from 6.1 percent in the first quarter to 7.9 in the second quarter, and is gradually on the path of recovery.
However, in terms of the rapid growth of China's economy, Davos Forum provokes thinking about the development modes of Asian countries including China; something which has become one of the most important topics this year.
According to Stephen Roche, Chairman of Morgan Stanley Asia, who took part in the forum, the urgent task that China faces is accelerating the transformation from an investment-and-export driven economy to a consumption-driven one. "Only when China's economic growth mode becomes more balanced can China become the engine and stabilizer of international economic growth in a real sense, bring more opportunities to global market development."
During the forum, Sha Zukang, United Nations deputy secretary-general, told the media that in light of the fact that China is still a country with a low per-capita income, at present China cannot be expected to lead the development of the world economy. "For a long period of time, European countries and the U.S. will continue to be the main driving force in the development of global economy."
According to a research report of the ADB, in recent years China's share in the export market of the world's seven largest industrial countries has increased notably, and the further promotion of domestic demand in China will help change the one-way reliance of Asian developing economies on European and U.S. markets, thus forming a new pattern of a two-way balanced flow of trade.
"In the current complicated development pattern of the global economy, both China and the U.S. play an important role of engine. The driving force propelling the growth of world economy cannot be accomplished by a single country," said Zhao Xiaoyu.
According to some experts, for China it does not matter whether the country is the leading engine in the growth of world economy; instead, what is important is what kind of approach China takes in terms of future development. This will not only significantly impact the global economy, but will also have far-reaching significance for China's sustainable development.
By People's Daily Online
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