China has the capacity to ensure economic stability and the government has "encouraging plans" to deal with the current economic challenges, overseas experts and scholars said after China closed a key domestic economic meeting.
The Central Economic Work Conference opened here Friday to review China's economic performance in 2015 and map out plans for 2016. According to an official statement released after the meeting, the government will make fiscal policy more forceful and monetary policy more flexible to keep growth within a proper range in 2016, with an emphasis on structural reforms.
China has the capacity to ensure economic stability and continue its economic reform, said Indian economist Sanjaya Baru, who is currently serving as director for Geo-economic and Strategy at the London-headquartered International Institute of Strategic Studies. "The growth rate of the Chinese economy has come down, as has been expected for some time ... If this slowdown is accompanied by a shift from investment-led growth to consumption-led growth, that will benefit the ordinary people of China, whose consumptions levels are still low," added Baru.
The annual meeting was held at a time when China's economy is facing increasing downward pressure, but many overseas experts believed the Chinese economy is still making major strides in the right direction. Brendan Ahern, chief investment officer of Krane Funds Advisors, said the transition of China's economy is taking place. "A lot of rebalancing has been done. Part of China faces headwinds of slowed global economic growth, particularly the export-driven manufacturing," said Ahern, adding that at the same time, China's consumption continued to do very well. "The comments came out of the economic working committee are very confident.
The leaders are very assuring to the challenges. There is a game plan. It's not solved overnight. It will take time. I am witnessing it. The plan is very encouraging," said Ahern. Ahern also expressed the belief that the reform of state-owned enterprises will continue. "Certainly the opening-up, liberation and reforms of the capital market, the bond market, the RMB internationalization will continue in 2016." "The new five-year plan really helps us know about the direction. In our view, the continuation is very strong reform agenda.
The direction and development policy will lead to positive outcome," said Ahern. The expert also pointed out that China's supply side reform will be new drivers of growth, and China's economy will continue to evolve. "China's urbanization will continue. Farming will be industrialized that will help food safety. At the same time, urban residents will have higher standard of living, as well as the ability to be part of the rebalancing, moving from blue collar to white collar jobs," added the expert.
Latest comments