Chinese economy still an 'engine' rather than a 'laggard'

Updated: 2016-01-30 11:14


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US exports to China merely account for 0.7 percent of its GDP, and for emerging markets, that ratio is merely 2.3 percent, Goldman Saches' research revealed.

Therefore, China's economy, even with an annual increase rate of 3 to 4 percent, will not create problems for other parts of the world, said George Magnus, researcher with the University of Oxford China Center and senior advisor to the United Bank of Switzerland.

Former US Federal Reserve Chairman Ben Bernanke also said recently that China's slowdown does not seem so severe as to threaten the global economy, so there is no need to worry excessively.

China's transformation on its growth model is much more important than the general GDP figures that people have always been obsessed with, the Financial Times cited Stephen Roach, a senior researcher from Yale University and former chairman of Morgan Stanley (Asia), as saying.

Roach noted that China has been highly successful in its efforts to shift its economic structure from a manufacture-centered to a service-centered one.

Stiglitz also pointed out that the market is always short-sighted and fails to notice that China's structural adjustment is imperative.

Structural adjustment heralds future bonus

Despite the slowdown of its economic growth, China has been making encouraging progress in structural transformation, which could be seen as a silver lining in the current global economic landscape.

China's consumption contributed to 66.4 percent of its GDP growth in 2015, reaching the highest level since 2001. Meanwhile, the service industry contributed to 50.5 percent of the GDP, 10 percent higher than that of the manufacturing industry, according to data from China's National Bureau of Statistics.

Such data has demonstrated that China's economic transformation has been on a fast track. With a more reasonable growth pattern and a stronger sustainable growth capacity, China's economy will bring about long-term dividends to global economic growth.

Jim O'Neill, former chairman of Goldman Sachs Asset Management known for the creation of the BRICS acronym, recently said China's economy has been going through a necessary and complicated transformation, and the recent fluctuations should not overshadow the progress it has made.

Despite the macroeconomic data, the Chinese economy has shown great vigor and vitality in the micro-economic areas such as the film market, outbound tourism, on-line shopping as well as the service industry, in which shared economic belts have promoted technological upgrades.