Review on China's economic situation in first half of 2012 II

Facing a GDP growth rate of 7.8 percent, we have no reason to lose confidence on China's economy.

In the long run, China is still within the strategic opportunity period of development, the fundamental situation for China's economic development has not changed, and the industrialization, marketization and internationalization are still fundamental impetuses for China's economic growth.

Former vice president and chief economist of the World Bank Justin Yifu Lin, who just resigned and returned China, said firmly that as a developing country, China has a large space and many projects to upgrade its industries, construct its infrastructures and improve its social welfares, and with the sufficient financial power and huge economic demand, it is quite possible for China to maintain a steady and high-speed economic growth for quite a long period in the future.

It is unquestionable that China's economy currently is facing some serious difficulties and China is still facing the pressure of economic slowdown.

On the one hand, we should see that the proper adjustment on the economic growth rate accords with the expected goal of the macroeconomic control and accords with the requirement of changing the economic development mode and adjusting the economic structure.

On the other hand, we should also pay attention to the newly-emerged situations and problems of the economic operation and focus on solving main problems met by enterprises in their productions.

Different from the year of 2008 when the international financial crisis broke out, currently the whole society of China has reached the agreement of basing the economic development on the domestic demand.

The internal growth factors of China's economy are accumulating and we are still confident on China's economic development. Especially, the Chinese government already has accumulated more macroeconomic control experience, and has adopted and is adopting more flexible and well-targeted measures for solving the current difficulties.

The economic situation is just like what Lin said, “Facing the impact from the global economic slowdown, the Chinese government has a financial space and an industrial upgrading space that are large enough for China to maintain a steady and high-speed economic development in next one or two years.”

Read the Chinese version at: 中国经济上半年经济形势述评（上）, Source: People's Daily, Author: Zhu Jianhong