CPPCC spokesman upbeat on growth as gathering opens
Tensions in region eased since relations with Philippines were repaired last year
China will continue to be the engine of global growth as its economic fundamentals remain strong and resilient, a senior official said on Thursday, dismissing the pessimism regarding the country’s economic prospects.
Wang Guoqing, spokesman for the annual session of the National Committee of the Chinese People’s Political Consultative Conference, said China has made a good start in its 13th Five-Year Plan (2016-20) and the country contributed about a third of world growth in 2016, more than any other country’s contribution.
“China’s steady growth has brought in greater demand, investment and products to the world economy and created many opportunities for cooperation,” Wang said at a news conference.
China’s growth target, as well as its policy and reform priorities, will be closely watched as the annual meetings of the country’s top legislature and political advisory body open this week.
The country will also help improve global prosperity and regional infrastructure as it pushes the Belt and Road Initiative, Wang said.
The value of investment in 53 countries involved in the Belt and Road Initiative reached $14.5 billion last year, he said.
The annual meeting of the National Committee of the CPPCC, the country’s top political advisory body, will open on Friday.
The National People’s Congress, the top legislature, will convene on Sunday, with lawmakers reviewing and elaborating on Premier Li Keqiang’s Government Work Report.
The consensus among economists is that China will keep its growth target unchanged at about 6.5 to 7 percent this year. The government will likely adopt a more expansionary fiscal policy by raising its budget deficits, while keeping its monetary policy neutral or even tighter to curb financial risks, they said.
Other reform priorities will include deepening supply-side reform, cutting excessive industrial capacity and reducing the burden for the corporate sector.
Ding Shuang, head of Greater China economic research at Standard Chartered Bank, said policymakers will emphasize economic and financial stability during the meetings and may raise the budget deficit to 3.5 percent of GDP, from last year’s 3 percent, to maintain growth.
“In light of the impact of a cooling property market on investment and consumption, we think a more expansionary fiscal policy and higher budget deficit are needed to prevent growth from falling significantly below 6.5 percent,” Ding said.
Xu Hongcai, an economist at the China Center for International Economic Exchanges, said China will likely achieve 6.8 percent GDP growth in the first quarter, as the economy has made a mild recovery since last quarter.
“With improved foreign trade, domestic investment and manufacturing activity picking up, I expect the growth momentum to continue at 6.8 percent in the first quarter,” Xu said.
“While the correction in the property market and decline in auto sales will weigh on economic growth, the rise of the new economic drivers, such as tourism, high technology and the innovative industry will offset the negative impact,” he said.
The concern about “freedom of navigation” in the South China Sea is “much ado about nothing”, a spokesman for the annual session of the top political advisory body said at a news conference in Beijing on Thursday.
“There is an old Chinese saying that ‘There’s no trouble in the world, except for what the unenlightened agitate’,” said Wang Guoqing, spokesman for the Fifth Session of the 12th National Committee of the Chinese People’s Political Consultative Conference, when asked about how China can ensure navigational freedom in the South China Sea.
“As a major trading nation and the biggest country along the South China Sea, China attaches more importance than any other country to navigational freedom and security in the South China Sea,” Wang said.
He said the accusation of “China threatening navigational freedom”, which has been raised by some nations, is a“fake proposition ”, as there have never been problems in that regard since China took back its islands in the South China Sea after World War II.
Stressing that the South China Sea islands are an integral part of China’s territory, Wang said that it is “perfectly normal” for China to build facilities, including those necessaryfor defensive purposes, on its own territory.
The civilian facilities China has built on the South China Sea islands, such as light houses, have played a positive role in guaranteeing navigation
The waters are at peace now, but Washington sent its carrier here in the name of protecting navigational freedom.” Luo Yongkun, researcher at the China Institutes of Contemporary International Relations
safety and humanitarian rescue, Wang added.
On Feb 12, the US Navy Times reported that the United States navy was planning to dispatch warships to the South China Sea for“freedom of navigation” operations.
Last month, the USS Carl Vinson Nimitz-class carrier strike group began patrolling the South China Sea.
Luo Yongkun, a researcher at the China Institutes of Contemporary International Relations, said that since relations between Beijing and Manila were repaired last year after the new Philippine administration came to power, tensions in the South China Sea have been eased.
“The waters are at peace now, but Washington sent its carrier herein the name of protecting navigation al freedom. It is obvious that we are not the one destabilizing the region.”