Con­fi­dence holds against claims of spec­u­la­tors who try to cre­ate panic

China Daily (Canada) - - LIFE -

who claimed he was see­ing a hard land­ing for China at theWorld Eco­nomic Fo­rum in Davos, Switzer­land, last Thurs­day, had made the same pre­dic­tion sev­eral times in the past. Doom­say­ers about China are in­ten­tion­ally try­ing to cre­ate panic to snap up prof­its as much as pos­si­ble, Xin­hua News Agency com­mented onWed­nes­day:

Far from some spec­u­la­tors’ claims, China is not a source of trou­ble but an im­por­tant en­gine of global eco­nomic growth with its grow­ing de­mand and in­vest­ment.

The world econ­omy is hav­ing trou­ble be­cause of the slug­gish growth and slow re­cov­ery of many economies. The mon­e­tary poli­cies of the US Fed­eral Re­serve and the ex­pan­sion of govern­ment debt are the orig­i­nal sources of the prob­lems.

Mean­while, China’s eco­nomic trans­for­ma­tion is cur­rently un­der way. Fig­ures show that for­eign in­vest­ment in China’s ser­vice sec­tor saw ro­bust growth in 2016.

Thanks to govern­ment poli­cies en­cour­ag­ing in­no­va­tion and the stream­lin­ing of pro­ce­dures, en­trepreneur­ship is flour­ish­ing and bring­ing fun­da­men­tal change to Chi­nese so­ci­ety. In the first half of 2015, the num­ber of newly reg­is­tered busi­nesses ex­ceeded 10,000 on a daily ba­sis.

Job cre­ation is also strong, which, cou­pled with a sound growth rate and strong cap­i­tal for­ma­tion and

in­no­va­tion, means that the world’s se­cond-largest econ­omy is un­likely to ex­pe­ri­ence a hard land­ing.

So why do spec­u­la­tors make claims that run counter to re­al­ity?

An­a­lysts say it is be­cause ei­ther the short-sellers haven’t done their home­work or that they are in­ten­tion­ally try­ing to cre­ate panic to snap up prof­its as much as pos­si­ble.

It is true that the growth of the world’s se­cond largest econ­omy is ex­pe­ri­enc­ing a rel­a­tive slow­down com­pared with the blis­ter­ing growth of the past decade. But as we know, de­ci­sion-mak­ers have now opted for a slower pace in or­der to make the coun­try’s growth more sus­tain­able in the fu­ture.

More­over, a growth rate of 6.9 per­cent is the envy of most other economies. China’s added eco­nomic out­put last year was more than the GDP of Swe­den or Ar­gentina.

And Chi­nese tourists spent 1.2 tril­lion yuan ($182 bil­lion) over­seas, while the coun­try’s in­vestors pumped 735 bil­lion yuan into other economies.

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