China’s economy not at risk

The Chinese economy will not experience a “double-dip” nor big fluctuations, and the government is capable and confident of keeping steady and relatively fast growth in the long run, an official from the National Development and Reform Commission (NDRC) said on Tuesday.

China’s potential growth rate will remain at a high level in the future on the back of the deepening process of industrialization and urbanization, as well as accelerated economic restructuring, which will create huge domestic demand, said Li Pumin, spokesperson of the NDRC.

Improving scientific and educational development and lowering institutional restrictions will also promote stable growth, he said.

Li admitted the country faces many challenges, such as the weakening global economic recovery and unbalanced domestic development. Many new problems emerging in the first half of this year have complicated the macro-regulation.

However, many advantages and opportunities remain. As long as the central government’s policy is implemented, the economy will maintain sound growth, he added.

Cooling down is conducive to correct relationship between market supply and demand, reduce price-hike pressure, and relieve resources and environmental restraints, he noted.

The government announced a 4 trillion yuan ($621 billion) stimulus package in November 2008 that boosted spending on infrastructure and the improvement of people’s lives.

Xinhua

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