Economist: Long-lasting inflation unlikely in China

16:13, June 07, 2010      

Email | Print | Subscribe | Comments | Forum 

Long-lasting inflation is unlikely to hit China in the coming decade, said Li Yang, vice president of the Chinese Academy of Social Sciences (CASS) on June 6.

"In general, China is facing the problem of a lack of demand. Twenty-one of 24 industries are experiencing overcapacity, which nullifies the massive price hike," Li said.

Since the beginning of 2010, certain agricultural products including garlic have shown a large-scale price increase. Li said that supply-side factors have led to rising prices in some areas. If macro-economic measures are used to fix those issues, it would only cause more new problems, Li said.

He said that prices levels would stay stable in general this year, even if there are some minor fluctuations in prices. The current issue is asset prices. Government regulators should focus on real estate and stock markets and deal with them cautiously.

Li said that China's exports might be impacted by Europe's sovereign debt crisis, but the momentum of development is not certain. China's economy is unlikely to hit bottom for a second time, and the economic growth rate of China should almost certainly reach 9 percent in 2010, Li said.

Due to the European debt crisis, E.U. economic growth might decline, which should have an impact on China's exports because China is the most important exporter to the European Union, said Yu Yongding, research fellow of the CASS.

By People's Daily Online

(Editor:黄硕)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Giant red lantern lights up in Tiananmen Square to celebrate the coming National Day on Oct. 1. (Xinhua/Li Xin)
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
Hot Forum Discussion