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Chinese Economy to Remain Robust After 2008 Olympics
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The Chinese economy will remain robust after the 2008 Beijing Olympics as has happened in some other host nations, said renowned economist Li Yining.

China is only halfway to full industrialization and the thirst for investment will not subside when the Beijing Olympics closes, said Li at the ninth New Year Forum held in Beijing University.

Huge amounts of investment is required to rejuvenate the old industrial base in northeast China and the country's underdeveloped west, said the economist, adding that hi-tech industries are also a new hot area that will attract new investment.

New energy resources, bio-technology, new materials and new generations of electronic products will draw huge sum of money, said Li.

Strong investment after the Beijing Olympics will keep the Chinese economy growing fast, said the economist.

Li says the challenges facing the economy include slow growth of farmers' income, shortages of resources and environmental deterioration.

These problems can be solved, said Li, calling for more private businesses to be established to break up monopolies and system reform of science and technology development. He also advocates the development of a recycling and tighter supervision over the environment.

As the largest sporting event in the world, the Olympics are expected to bring huge business opportunities to the host nation but some analysts are worried the Chinese economy may slump when this apparent driving force expires. Some people have even delayed buying homes as they expect the housing prices to drop after 2008.

(Xinhua News Agency January 7, 2007)

 

 

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