China’s top economic planning official Xu says any pred…
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The answer: no radical or rapid change. If you would like to discuss another topic, look for a relevant article.
Zhang Liqun, researcher with the State Council’sDevelopment Research Center, said China can achieve that without undermining its reshaping of the economy.
“So it is with China”.
Photo taken on November 2, 2015 shows the C919, China’s first homemade large passenger aircraft, at a plant of Commercial Aircraft Corporation of China, Ltd. (COMAC), in Shanghai, east China.
Such laws and regulations have sparked fear amongst foreign businesses operating in China, and prompted major powers to express concern to Beijing over three new or planned laws, including one on counterterrorism.
At least 1.5 million workers – and possibly millions more – are due to be let go by state-run coal mines and steel mills, while the People’s Liberation Army is shaving 300,000 jobs.
Concerning the recent bouts of market volatility in the USA and Europe, Mr. Xu played down China’s role. He added: “China will absolutely not experience a hard landing”.
The Premier did acknowledge some clouds on the horizon.
He said the country would undertake ambitious structural reforms to address “overcapacity” by Chinese firms.
Presenting a report on last year’s government performance to the NPC on Saturday, China’s Premier, Li Keqiang said the country had met all its economic and social development targets amidst ‘difficulties and challenges’.
“China is struggling between the poles of goosing the economic engine and throttling back the fuel supply, but in the end we are likely to see some gears burn out”, he said.
Still, striking an upbeat note, Li said the economy had great potential and promise if it could harness the strength of an increasingly skilled and educated workforce and shift towards higher-value and higher-technology industries. Last week, Moody’s Investors Service downgraded its outlook for China’s sovereign debt, along with that of 25 financial institutions and 38 state- owned companies. But plans to reduce industrial over-capacity were unlikely to result in large-scale layoffs, Xu said. In 2016 alone, China plans to spend 2.45 trillion yuan on new railroads and highways.
Fixed asset investment (the most important measure for Australia) was at 10% in December.
“Given the subdued prospects for organic growth drivers such as exports and private investment, 6.5% is an ambitious growth target that will require significant macroeconomic policy stimulus”, said Louis Kuijs, chief Asia economist at Oxford Economics who previously worked at the World Bank.
For 2016, a 6.5 per cent to 7 per cent growth range was outlined, with 6.5 per cent pegged as the baseline through 2020. “There aren’t any easy choices”.
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“We have some room, but can not increase too much”, he added, pointing out how China’s fiscal income was only equivalent to about 30% of GDP, “which is relatively low compared with other countries and far lower than that in developed countries”. “We just have to get through this process, and we can, without question, reinvigorate the economy and ensure its dynamic growth”.
