China's economy to remain beacon and engine in 2012
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Xinhua, January 1, 2012
China's economy will not break. Instead, it will sustain its robust vitality and remain a beacon of hope and an engine of growth for the still fragile world economy in 2012.
Some Western analysts, including Nobel Laureate Paul Krugman, who is known not only for his economic insights but for his harsh judgement on China's economy, recently warned of a possible crash of the Chinese economy in the near future.
They claimed that slowing growth and declining stock and commodity prices were signals that the country's property bubble was set to burst.
Such warnings, however, are simply far-fetched and do not reflect the reality of China's economy.
At the nadir of the 2008 financial crisis, China was among the first countries to bounce back. In 2009, China reached a growth rate of 8.7 percent, outperforming not only developed countries, whose economies dropped 3.2 percent, but also emerging ones, which enjoyed an average growth of 2.4 percent.
China's economic growth, though on a slower track recently, is still expected to reach 9 percent in 2011, contrasting starkly with the anemic growth in Europe and the United States.
Those who warned of an economic collapse of China also underestimated the Chinese government's capacities to avert financial risks.
China has in its arsenal a powerful and flexible tool of macroeconomic regulation which allows the country to take effective measures to avoid risks in the property sector.
At the moment, the world is still subject to hydra-headed threats: Europe's debt crisis lingers, the U.S. stimulus-fuelled recovery is petering out and economic activities in emerging economies have slowed.
Against such a backdrop, China will remain a lighthouse in the rough sea of global economic growth, providing more exports and investment opportunities for other countries and helping boost regional cooperation.
Just as Chinese President Hu Jintao said in his New Year's address, China will speed up economic restructuring, maintain the sound momentum of economic growth and help accomplish common development.
In line with this spirit, China is set to continue with its economic overhaul, wean its economy from the heavy dependence on exports and unleash more domestic demand.
A consumption-driven Chinese economy, with its 1.3 billion population, will create an astronomical domestic market for products and services from all corners of the world, supporting jobs and uplifting economies both at home and abroad.
The unfolding economic restructuring in China will also further cement its role as a global export market, helping other countries lift their sagging exports and cushioning the impact of dwindling demand from the West.
Meanwhile, with China being a genuine friend and partner of its neighbors and dedicated to regional cooperation and common development, the benefits of a prosperous China extend far beyond China's borders.
At the 14th summit between China and the Association of Southeast Asian Nations in November, Chinese Premier Wen Jiabao outlined a six-point proposal to facilitate China-ASEAN practical cooperation.
Chinese leaders have also conveyed a firm commitment to reducing trade barriers and fostering regional integration in the Asia-Pacific region.
These commitments mean that regional cooperation will grow stronger, deeper and broader in 2012 between China and its neighboring countries.
Peering ahead into 2012, obstacles litter the path to growth. However, China will continue working together with the rest of the world to tackle economic challenges and providing powerful impetus for the world economy.
