Despite the signs of downturn in China’s manufacturing and industrial sector and China's economy, President Xi Jinping told global business leaders on Sunday to dispel worries about the world's second-largest economy. "Some people worry that China's economic growth will fall further, can
it climb over the ridge?" Xi said. "There are indeed risks, but it's not
so scary." He also addressed that "China's development brings enormous opportunities and benefits to the
Asia Pacific and the world, and the business opportunities are lasting
and limitless."
Do you agree with his statement? Do you think President Xi Jinping is too over-confident that there is nothing to worry about the risks faced by China's economy?
From his comment about "even if China were to grow 7% it would still be at the forefront of the world's economies," wouldn't that mean that declines in their economy could greatly impact other economies since the Chinese economy is so influential? Perhaps their economy will still be able to be among the leaders of the world, however, I imagine that a rocky year in their economy could impact other economies around the world that interact with China. Xi Jinping seems confident about the Chinese economy remaining on top and adjusting accordingly, but I wonder how their decline could impact other countries.
ReplyDeleteI think that there are significant risks that are being overlooked. I don't think that an economy can sustain such large growth without pumping an enormous amount of money into the economy. Can China continue to expand its industries or loosen monetary and fiscal policy enough to keep growth high? Further if growth is kept artificially high, this could lead to a devastating recession once the economy returns to its normal level.
ReplyDeleteI agree with Cam, that the Chinese economy is quite influential as a player in the global economy. I think that President XI Jinping has the right to be confident about China's economy even with the risks it may face. I think the economy will be impacted by many outside factors such as politics which will prevent further growth. These outside factors will eventually catch up with the economy. I think there is still room for growth before the economy takes a hit.
ReplyDeleteI agree with Cam that a major worry of declining growth in China's economy is because it may have large adverse implications for other closely linked economies. Moreover, given that President Xi Jingping is a politician speaking to potential current and potential "investors," it's obvious that he's saying there aren't any problems. Clearly there are many potential issues, and if China was artificially inducing growth, the problems would be at even a higher magnitude.
ReplyDelete