4-3-2-1: China in the World Economy

Related entries: Economy, General

The CCPIT sponsored “Made in China 2007” seminar on Saturday featured two very impressive speakers – Dr. Shi Zhengrong, founder of Suntech Power (and one of China’s richest entrepreneurs), and Professor Lin Yifu, leading economist (and advisor to the Chinese State Council).

Professor Lin started off by putting China’s economy into a global context. He noted China’s position in the following areas:

    • 4th in GDP
    • 3rd in Trade
    • 2nd in Foreign Direct Investment
    • 1st in Foreign Exchange Holdings

While noting the challenges of achieving stability and growth at the same time, and over an extended period, Lin suggested that the government understood both the pressures and the need for action, and that GDP growth of around 9 percent a year would be possible over the next 20-30 years (together with appreciation of the RMB by 3-4 percent a year over the next few years).

Key issues raised included the risk of deflation; over-investment in some sectors; a relatively under-developed service sector; lack of access to capital for SMEs; need for better access to bank funding (e.g. via promotion of SME financial institutions); income disparity; the environment; and recognition that local officials need incentives to implement central policies (e.g. promotion should not be based only on economic achievements, but also on environmental impact and other measures).

He also noted that tax revenues could be increased in some areas – including in resources, with an indication that China is considering following Russia’s example. Mining and oil companies might want to update their risk assessments.

Frankly it was a challenge to keep up with the flow of information, and “live blogging” is not too advanced in these parts, but more on this will hopefully follow if the presentation materials become available.

2 Responses to “4-3-2-1: China in the World Economy”

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  2. Archive » China in the World (Bank)| China Business Blog Says:

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