Bloomberg News:

Would you share with us your outlook on China's economic growth in Q2? From the economic data released in March, such as fixed asset investment, retail sales and industrial production, it seems that China's economic situation had become more sluggish. Is China able to keep its GDP growth above 7 percent in Q2?

Sheng Laiyun:

Thank you for the question. Concerning the economic situation in Q2 and the following quarters, I have two points to make.

My first point is: In the short term, the economic adjustments in China and the world will continue. This is unavoidable. Therefore, the downward pressure on China's economy will remain.

From an international perspective, the world is witnessing structural divergence and adjustment. However, the different economic trajectories of different countries, especially the adjustments in industries and economic structures, won't produce any notable effects in the short term. Neither can the policies on structural reforms. Therefore, in the short term, the current situation in the world won't change.

From a domestic perspective, we are at a crucial stage of structural adjustment. We need to tackle some critical problems to make further progress. It will take a long time to reduce traditional industries' inventory and excess production capacity. It will also take a long time for new stimulants of economic growth to emerge and grow.

All these factors will contribute to the downward pressure, and they will continue to exist both internationally and domestically in the short term.

My second point is: Despite the downward pressure, China is able to keep its economic development steady, and the current situation allows us to do so. The Chinese economy is highly resilient and has much potential. This gives us enough room to promote growth. Fundamentally speaking, the momentum of economic growth remains unchanged.

First, China hasn't finished industrializing and urbanizing. Industrialization, urbanization, agricultural modernization and IT application continue to be major economic stimulus in China. Currently, new IT technologies, such as the Internet, Internet Plus, big data and cloud computing, are seeing flourishing development. Their application to urbanization, manufacturing and industrialization has been accelerated. This has brought about many new modes of economic growth and new engines of economic growth. Therefore, fundamentally speaking, industrialization, urbanization, agricultural modernization and the application of new IT will lead to new investment and consumption demands, and will majorly stimulate China's economic growth.

Next, the Chinese government is accelerating the pace of reform and opening up and unleashing the dividends of reform. This is visible to all. Since last year, the new government has deepened reform, which will lead to a new economic stimulus and will boost economic vitality.

Moreover, the Chinese government is experienced in using macro-regulation tools to deal with complex situations. We have accumulated experience in this field for years. The government will continue to improve macro-control and create new regulation tools to handle new situations and new problems.

In short, we are able to keep our economy growing at a medium-to-high speed, and the current situation allows us to do so. As long as we strictly follow the instructions of the CPC Central Committee and the State Council, work with diligence and a down-to-earth attitude, accelerate the pace of reform and adjustment, and strive for reform and transformation, China will see steady and sound economic development.

Related

Go to Forum >>0 Comment(s)