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Still the economic engine

Updated: 2012-04-13 08:07

(China Daily)

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The latest report released by the Asian Development Bank on Apr 11 says China will continue to be the most robust economic growth engine in the world despite the slowdown in its rate of growth.

China' economy has become evermore intertwined with other Asian economies and the rest of the world, which makes predicting the prospects for China's economy more complicated and confusing. Especially as the world economy is in the process of rebalancing and many countries have serious problems to solve.

Some economists from the West try to take a shortcut and extrapolate from the experience of developed countries when making predictions about China' s economy. This inevitably leads them down the wrong path, as they ignore the unique characteristics and advantages of China's economy.

The report looks at China's economy within the bigger global picture and concludes there will be no hard landing. But it cautions that Europe's sovereign debt crisis remains a big threat to Asian economies.

Comparing China's economy within the context of the global economy is conducive to understanding the real state of the Chinese economy, which is in the process of transforming its development mode to support future growth, as it highlights the unique characteristics and advantages of China's economy.

Clearly, China does not have the debt and social-welfare burden of European countries and will not be trapped in the quagmire of partisan politics like the United States.

It enjoys advantages in terms of efficiency in decision-making and implementation as well as in social and political stability, which provides a solid foundation for Chinese economic growth.

Indeed, China's stability is the largest resource for its sustainable development. History shows that long-term stable development brings more benefits to people than rollercoaster economic growth.

Recent events in some European countries show that even a slight reduction in social welfare can cause unrest, but China is steadily improving its social welfare coverage.

Stability does not mean standing still or refusing to progress. Instead, it means seeking reforms to promote stability in an ever-changing environment.

The vitality of the Chinese economy will be sustained by the long-term stability of the country, which is undoubtedly beneficial for the whole world.

(China Daily 04/13/2012 page8)

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