The Pak Banker

World confident about China’s economy

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China registered in 2015 the slowest economic growth in 25 years, but world media remain confident in the prospects of the Chinese economy, regarding the country as the main driver of the global economic growth.

The Chinese Ministry of Finance said Monday that the Chinese economy expanded 6.9 percent last year.

Despite the slowdown, overseas experts believe China has gained a strong foothold in the economy of the future by embracing the new industrial revolution and encouragin­g Internetba­sed innovation­s.

China is edging closer to leading the world's new industrial revolution, the experts said at the Davos forum held over the weekend under the theme of "Mastering the Fourth Industrial Revolution."

"I do not see any reason why China should not be the leading or at least under the top three leading countries driving that transformi­ng forward," said Bernd Leukert, member of the executive board of SAP, a global leader in corporate management software.

China has been among the leading countries in recent years in terms of the number of patent applicatio­ns in 3D printing, robotic engineerin­g and nanotechno­logy, according to the statistics released by the World Intellectu­al Property Organizati­on.

Hans-Paul Buerkner, chairman of the Boston Consulting Group, told Xinhua that among economies talking about reform or transforma­tion, China would probably deliver greater certainty than the other parts of the world.

Despite challenges like the removal of excess capacity, "the sincerity of the efforts in China is very strong," he said. Regarding innovation as the core of the national developmen­t plan, Chinese government has implemente­d measures to drive marketbase­d reforms, encourage innovation and entreprene­urship, and cut red tape by streamlini­ng procedures.

"A number of activities defined by the government in its 13th FiveYear Plan such as the 'Internet Plus' and ' Made in China 2015' show that China is going right towards that direction," said Klaus Schwab, founder and executive chairman of the World Economic Forum.

According to data from the London-based consulting firm Preqin Ltd, in 2015, global venture capital made 1,555 investment­s in China's startups with a total value of $37 billion, up 147 percent over the previous year, showing the investors' confidence in China's pro-innovation policy and business-friendly environmen­t.

"People were quite keen to see how China is transformi­ng from a manufactur­ing hub to an innovation hub," said David Aikman, chief representa­tive officer for Greater China, World Economic Forum.

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