News / Asia

China Warns of Slowing Economic Growth Rates

A pizza delivery man wearing a reindeer helmet rides an electric bicycle crossing a road junction in Beijing, China. Chinese leaders pledged fine-tuning to ensure stable and more balanced growth while fighting inflation, ending a top-level economic planni
A pizza delivery man wearing a reindeer helmet rides an electric bicycle crossing a road junction in Beijing, China. Chinese leaders pledged fine-tuning to ensure stable and more balanced growth while fighting inflation, ending a top-level economic planni
TEXT SIZE - +

As China looks ahead to 2012, Chinese economists are cautioning that the country is likely to have lower rates of economic growth than the nine percent expected for this year. They say the government also should be preparing the public for the possibility of more inflation.

China's economic boom

During the past few years of global financial gloom, China has remained one of the world's economic bright spots.

At a recent ceremony to mark China's first decade in the World Trade Organization, President Hu Jintao stressed that a strong Chinese economy is good for the world.

Hu vowed that China will continue to follow a path of peaceful development and is committed to what he described as a win-win strategy. He added that China is  committed to the common development of the world by realizing its own development.

China's economy has grown at an annual rate of about 10 percent for more than three decades.

Different reasons for slowdown

Yu Bin, a senior macro-economist with China's State Council, says there are signals that China is nearing the end of a period of high economic growth.

Yu says the official forecast for China's economic growth next year will be lower than nine percent. He says he expects it will fall to about 8.5 percent.

He says there are many different reasons for the economic slowdown, but that it is partially due to Chinese government efforts to rein in inflation in the world’s second largest economy.

The economist says some believe that a Chinese economic slowdown is a temporary negative effect from the U.S. and European debt problems. But he adds that it is also part of what he describes as the Chinese government's “prudent” monetary policy aimed at curbing inflation.

Demand for exports declining

Yu says overall inflation this year, as measured by the consumer price index, will be around four percent. He says this is the same target for next year, but at the same time he warned that Chinese people will have to, in his words, “increase their tolerance for inflation.”

Liu Li-Gang, with the banking group ANZ Hong Kong, is predicting a slightly higher growth rate for China in 2012. “We think that a growth of nine percent in the coming year can be obtained,” he said.

Liu says since external demand for Chinese-made products has slowed, China will have to rely more on spurring demand at home - through increasing domestic consumption and investment.

“We have seen a lot of investment in roads, railways, but not enough investment in areas that are related to Chinese welfare, such as small investment in hospitals, education and things like that," Liu explained. "I think that perhaps the government will rely on administrative measures to enforce more investment in welfare-related areas so that overall social stability can be maintained.”

Challenges lie ahead

He points to another grassroots issue that he believes will be problematic in 2012. “I would say if there is a challenge, the government will need to continue to use its administrative measures to crack down on corruption at the low level of the government, so that social stability, discontent, can be managed,” Liu said.

Government economist Yu Bin says Beijing is aware of the need to spend more on the welfare of its more than one-point-three billion people. He says this is the reason why the country's 12th, five year economic plan that goes into effect in 2012 has made improving peoples' livelihoods one of its central tasks.

You May Like

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Replaced

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid