China’s economy to further stabilize

Premier Wen Jiabao said on Sept. 11 that China’s economy is expected to further stabilize as recent measures on tax cuts， required reserve ratio， investment， infrastructure and trade facilitation are implemented and take effect， Xinhua reported.

“Macroeconomic indicators show that China’s economic and social development is in good shape，”Wen said when addressing the opening ceremony of the Summer Davos Forum held in northern China’s port city of Tianjin.

“The speed of growth is still within the target range set at the start of the year， and although growth is slowing down， it is being more stable. As the recent measures are implemented and take effect， we expect the economy to further stabilize，” said Wen.

China’s 8-pct growth to continue for another 20 years

Leading Chinese economist Justin Yifu Lin on Sept. 11 said he expects China’s 8-percent annual economic growth to continue for another 20 years based on technological innovations and structural reforms， according to a Xinhua report.

Investment will still be a major driving force for future growth in the short term， Lin said at a session of the World Economic Forum’s 2012 Annual Meeting of the New Champions.

Lin， a professor with Peking University and former chief economist with the World Bank， suggested that China’s future economic stimulus package should put more weight on government investment rather than commercial loans to avoid excessive inflation.

“China’s economy to see mild pickup”

China’s economic growth is expected to see a mild pickup at the end of this year that will provide room for structural adjustments， Ba Shusong， a researcher with the State Council Development Research Center， said on Sept. 9 at the 16th International Fair for Investment and Trade being held in southeast China’s city of Xiamen， Xinhua reported.

Ba said that with China’s pro-growth policies gradually taking effect， the economy has bottomed out and will see mild expansion this year and next year.

“U.S. QE3 could affect yuan appreciation， inflation”

A possible third round of quantitative easing (QE3) in the United States may stimulate growth but also increase pressure concerning the appreciation and inflation of the yuan， economists was quoted as saying by Xinhua.

China will face renewed pressure for its currency to appreciate， although its exporters will benefit somewhat from stronger demand in the United States if QE3 is rolled out， said Li Daokui， a former advisor to China’s central bank， during the 2012 Summer Davos Forum being held in North China’s city of Tianjin.

“Islands purchase will hurt economic ties”

A senior trade official warned that the Japanese government’s so-called purchase of the Diaoyu Islands will “inevitably have a negative impact on ChinaJapan economic and trade ties”， while Japanese-funded companies expressed concerns over tensions， China Daily reported.

“If Chinese consumers， in a reasonable manner， express their positions and views against Japan’s violation of China’s territorial sovereignty， I think it is within their rights to do so and it is understandable，” Vice-Minister of Commerce Jiang Zengwei said at a news conference on Sept. 13.