World Trade Centers: China’s urbanization will drive growth

With sluggish growth in major developed countries, China and other emerging economies will continue to have a more influential role in the global economy, a top executive with the World Trade Centers Association said.

“Obviously, China is going to play a major role to help recovery of the world economy. I am quite hopeful for the future of China,” said Eric Dahl, chief executive officer of the WTCA.

Favorable factors including innovation, rising investment and deepening reform will play big roles in the country’s sustainable economic performance in the future, according to Dahl.

“The outlook for China’s economy is very strong. The country has great potential to develop its domestic industries and serve domestic demand,” he said.

“China has environmental and social challenges. But the country’s performance in the last 30 years was fantastic. It was a miracle.”

Dahl said China’s vast domestic demand provided a new market when other markets around the world were hard hit by the global economic downturn.

“Labor costs and land use in the United States are cheap today. Given that the US economy is in crisis, it is obvious that they are buying less from China than before,” said Dahl.

“But luckily, China can refocus on the domestic market as there is huge demand domestically. It will help the country to offset the global decline.”

In an exclusive interview with China Daily after the WTCA China Forum on Monday, Dahl said China’s urbanization also has huge potential to drive the country’s economy. The forum was held as part of the annual China International Fair for Investment and Trade.

“From the economic point of view, China’s urbanization policy will get people together to be more productive. It also has social benefits because the needs of hundreds of millions of people will be addressed. They will move from poverty to a sustainable living standard,” he said.

In China, new neighborhoods and cities emerge faster than ever before. They are widely regarded as the most dynamic growth engine for the country, according to Dahl.

Under the urbanization process, some 400 million farmers are expected to migrate to urban cities in China from now until 2020. As a result, as much as 8 trillion yuan ($1.27 trillion) in infrastructure investment will be needed, according to the WTCA.

Eric Dahl,