Latest News:  
Beijing   Overcast/Moderate rain    9 / 12 ℃  City Forecast

English>>China Business

China's slowdown 'beneficial'


13:27, October 24, 2012

A former adviser to the central bank says that the current economic slowdown in China is doing more good than harm.

Li Daokui, who is now a professor at Tsinghua University, said on Tuesday that the current easing in economic growth—which has seen the pace slow to around 7.5 percent from 10 per cent in 2010 — has created 11 million new jobs in the first nine months of this year, more than the entire annual target of previous years.

"There's no massive unemployment, wages are growing, and so is domestic demand and consumption, which are all beneficial for China's structural adjustment," Li told the 2012 Tsinghua Management Global Forum.

"This stands in contrast to the 'recoveries' being experienced by the United States and Europe, which have generated no jobs," he added.

According to Li's research, household consumption has contributed to 41 percent of China's GDP since 2007, instead of the official target figure of 33 percent.

Although Li admitted that an economic slowdown might result in a rise of non-performing loans in China's banking system, he said the risks remain controllable.

"The next round of global economic growth will come from those countries who dare to make appropriate changes in public policies, but I see no such signs of this in the US and Europe," Li said.

He added that China still needs to make a lot of improvements in public policy after the change in government due next month, in particular to simplify approval processes.

News we recommend:
House prices nudge upward in September Islands dispute benefits carmakers' competitors Sany's bid to usurp Caterpillar
Falsely labeled crabs upset the market A Boon to the Economy 'Right time' for London to build RMB business
Beijing offices still hot properties  The consuming challenge of food safety The dawn of a new growth era


Leave your comment0 comments

  1. Name


Selections for you

  1. Helicopter formation of PLA army aviation force

  2. Four "gun masters" of PLA Beijing MAC

  3. James Bond and his girls on big screen

  4. Elderly people in pictures

  5. China (Shengyang) Int'l Automobile Fair opens

  6. China's economy has bottomed out

  7. J.K. Rowling's new book gets Chinese version

  8. Charming Indian models

Most Popular


  1. China's development benefits all: U.S. city official
  2. Vested interests must not prevent gaokao reform
  3. Economic strains put Hollande on back foot
  4. Sino-Cambodian ties undimmed by Sihanouk’s death
  5. US should engage Asia as a partner
  6. US risks losing neutrality over Diaoyu
  7. New energy initiatives just for show
  8. Commentary: Shining a light on lower taxes
  9. U.S. needs to rethink how to partner China
  10. China needs to rebuild economy

What’s happening in China

All IDs to be checked on trains to Beijing

  1. Mo's Nobel may pull in 200m yuan by year's end
  2. Villagers find deposits in loan co-ops vaporize
  3. Police probe doctors in human egg case
  4. Chinese daughters more filial than sons
  5. Wuhan to get 200-m ferris wheel