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- Chinese economy will remain stable – government is flexible and rapid with policy responses.
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China StabilityHigh NowChina’s economy will remain stable – strong job growth, low inflation, rising incomes, and shift away from investment.News.Com.Au 14 (Australia’s most popular news website, “China’s economic growth slowing but stable,” News.com.au, 10 November 2014, http://www.news.com.au/finance/economy/chinas-economic-growth-slowing-but-stable/story-e6frflo9-1227118250938, *fc) CHINA’S economy is shifting to a “new normal” of slower but more stable growth and has the resiliency to overcome any bumps in the road, Chinese President Xi Jinping said Sunday. Xi also touted the benefits of Chinese development to the world in a speech to Asian business leaders gathered in Beijing ahead of the Asia-Pacific Economic Cooperation summit Monday and Tuesday. China’s outbound investment will exceed $1.25 trillion over the next 10 years, while China will import more than $10 trillion worth of goods and send more than 500 million tourists abroad over next five years, Xi said. “For the Asia-Pacific and the world at large, China’s development will generate huge opportunities and benefits and hold lasting and infinite promise,” Xi said. At the APEC summit of 21 economies including the U.S., Japan, Russia, and Mexico, China is spearheading a free trade initiative — the Free-Trade Area of the Asia Pacific — seen as part of Beijing’s efforts to counter U.S. domination of global trade and financial regulation.
However, Xi said the economy remains robust, with strong job growth, low inflation, rising incomes and a shift away from investment to services and hi-tech manufacturing. China is also shifting to a consumption-driven economy, reducing the importance of investment and government inputs and decreasing its dependence on export markets, Xi said. “Under the new normal conditions, China’s economic growth has become more stable and driven by more diverse forces,” Xi said at the opening ceremony of the APEC CEO Summit. The world’s No. 2 economy has shifted down a gear from the torrid rates of the previous decade, but remains among the world’s most dynamic, he said.
“Resilience best equips the Chinese economy against risks,” Xi said. Chinese economy will remain stable – government is flexible and rapid with policy responses.Rudd 15 (Kevin Rudd, Prime Minister of Australia with a Bachelor of Arts in Asian Studies from the Australian National University in Canberra, “U.S.-China 21: The Future of U.S.-China Relations Under Xi Jinping,” Harvard Belfer Center for Science and International Affairs, April 2015, http://belfercenter.ksg.harvard.edu/files/Summary%20Report%20US-China%2021.pdf, *fc) 1. Sorry, but on balance, the Chinese economic model is probably sustainable. On the sustainability of Chinese economic growth as the continuing basis of Chinese national power, on balance we should assume a Chinese growth rate in the medium to medium-high range (i.e. in excess of 6 percent) as probable for the period under review. This takes into account both official and unofficial statistics on the recent slowing of the rate. It also takes into account lower levels of global demand for Chinese exports, high levels of domestic debt, the beginning of a demographically driven shrinking in the labor force, continued high levels of domestic savings, at best modest levels of household consumption, an expanding private sector still constrained by state-owned monoliths, and a growing environmental crisis. But it also takes into account the vast battery of Chinese policy responses to each of these and does not assume that these are by definition destined to fail.q Furthermore, if China’s growth rate begins to falter, China has sufficient fiscal and monetary policy capacity to intervene to ensure the growth rate remains above 6 percent, which is broadly the number policy makers deem to be necessary to maintain social stability. It is equally unconvincing to argue that China’s transformation from an old economic growth model (based on a combination of high levels of state infrastructure investment and low-wage, labor-intensive manufacturing for export), to a new model (based on household consumption, the services sector and a strongly innovative private sector) is also somehow doomed to failure. This is a sophisticated policy blueprint developed over many years and is necessary to secure China’s future growth trajectory through different drivers of demand to those that have powered Chinese growth rates in the past. There is also a high level of political backing to drive implementation. The process and progress of implementation has so far been reasonable. Moreover, to assume that China’s seasoned policy elites will somehow prove to be less capable in meeting China’s next set of economic policy challenges than they have been with previous sets of major policy challenges over the last 35 years is just plain wrong. China does face a bewildering array of policy challenges and it is possible that any one of these could significantly de-rail the Government’s economic program. But it is equally true that Chinese policy elites are more sophisticated now than at any time since the current period of reform began back in 1978, and are capable of rapid and flexible policy responses when necessary. For these reasons, and others concerning the structure of Chinese politics, the report explicitly rejects the “China collapse” thesis recently advanced by David Shambaugh. It would also be imprudent in the extreme for America’s China policy to be based on an implicit (and sometimes explicit) policy assumption that China will either economically stagnate or politically implode because of underlying contradictions in its overall political economy. This would amount to a triumph of hope over cold, hard analysis. No ImpactNo impact to declining economy – China taking steps to increase growth now.Bishop and Clinch 2/4 (Katrina Bishop, Acting digital news editor of CNBC.com, Matt Clinch, Associate Producer at CNBC.com, “China cuts bank reserves to 'keep economy stable',” CNBC, 4 February 2015, http://www.cnbc.com/2015/02/04/china-cuts-bank-reserves-to-keep-economy-stable.html, *fc) China's central bank increased its economic stimulus measures even further Wednesday amid growing concerns about the rate of expansion in the world's second-largest economy. The People's Bank of China (PBOC) decided to cut banks' reserve requirement ratio (RRR) by 50 basis points to 19.5 percent. The move, effective Thursday, is the first such cut since May 2012. This will lower the amount of deposits that each lender is required to hold as reserves. The measure will help keep the economy stable, the PBOC said alongside the decision which was announced around 10:30 a.m. GMT. It added that it will also help guide the appropriate growth in social financing. Asian markets were closed during the announcement but their European counterparts received a boost on the news. Mining stocks like Fresnillo, which have a heavy exposure to China, rallied on the announcement as did Asian exposed lenders like Standard Chartered. Australian and New Zealand, whose economies are heavily reliant on the Chinese economy, saw their currencies lift on the news. The PBOC's move follows on from a cut to one-year benchmark lending rates in November. Analysts at the time believed that such moves are motivated by a dovish central bank trying to cushion its fall from years of double-digit growth. Data published last month revealed that China's economy grew at its slowest pace in 24 years in 2014, undershooting the government's target for the first time since 1998. Gross domestic product (GDP) expanded 7.4 percent from 7.7 percent in 2013. Government targets have been for a print of "around 7.5 percent." Meanwhile, China's services sector grew at the slowest pace in six months in January as growth in new business weakened, an HSBC services purchasing manager's index (PMI) showed Wednesday, Reuters reported. The slowdown comes at a time when the country's new leadership is stepping up regulation, curbing an overheated credit market and switching an export-focused economy into a consumer-driven one. However, Larry McDonald, the senior director at Newedge USA, told CNBC Wednesday that the new announcement does mark a change in direction from the bank, compared to its strategy at this point last year. He explained that the PBOC had been more worried about the country's credit markets and had tried to curtail risk, but were now appearing to be more dovish. "They have completely reversed course," he said. "It's a sign of global central bank panic," he added, with other central banks also producing similar moves in the last few months in the face of global deflation and growth downgrades from organizations like the World Bank. In January, Chinese Premier Li Keqiang told an audience at the World Economic Forum in Davos that the economy was not heading for a hard landing and would instead stick to its current path of reforms and create far-reaching opportunities for the whole world. He said that the Chinese economy had now entered a "new normal" where development is moving to a "medium-to-high" level. Likening the Chinese economy to a train, he added that the train would "not lose speed or momentum" and will be powered with a stronger motor going forward. Directory: file -> view view -> Western Europe after wwii view -> Author study: paul fleischman view -> Qpa1 7ela study Guide view -> Arctic Oil/Gas Neg view -> November 1970 Approximately 150,000-500,000 deaths Bhola Cyclone Bangladesh view -> Grade Level: 6 Unit of Study: Caribbean glce view -> Citation: Duffield, Katy view -> Table of Contents Lesson # view -> Chinese Wind Energy Disad Download 2.62 Mb. Share with your friends:
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