Latest News:  
Beijing   Sunny/Cloudy    14 / 5 ℃  City Forecast

English>>China Business

Reliance on investment should be reduced, says IMF

By Lan Lan (China Daily)

09:02, November 14, 2012

As China's economy becomes less dependent on exports, care has to be taken not to let future growth become too dependent on investment.

That's according to Il Houng Lee, the International Monetary Fund's senior resident representative in China, who added that it remains vital to determine exactly what is the best amount of investment for the country, as it changes its economic growth model from an export-driven economy to one more reliant on domestic growth.

Lee said he didn't think there would be a "hard landing" for China in the short term, but he warned of continued risks if the level of investment remains at current level.

He said that despite benefiting from the strong growth by developed countries in the past, as well as strong investment in China, both growth engines have hit problems at the moment and need to be adjusted.

China's economy has become more sensitive to external economic influences, evidenced by recent economic figures, which show growth has slowed for seven consecutive quarters.

Lee said the most pressing need now is to transform the economic model into one less dependent on advanced economies, and more focused on encouraging domestic consumption.

One possible answer for the first challenge is to expand the country's trade within Asia instead of exporting more to advanced economies, he said.

" And China has to lower its reliance on investment.

【1】 【2】 【3】

We recommend:
A Decade of Fastest Development Eastern Boom Lightens Western Gloom Oct. data released, inflation slows
Gold collection issued to mark 'Year of Snake' China: A Fast-growing Force in IPR 13th Int'l Automobile Industry Exhibition
China Int'l Industry Fair opens in Shanghai Caofeidian coal wharf put into use Canton Fair wraps up on Sunday


Leave your comment0 comments

  1. Name


Selections for you

  1. PLA Aerobatic Team gives warm-up performance

  2. Breitling Wingwalkers presents wonderful performance

  3. Beard and Moustache Championships

  4. Beautiful Tachuan Village, China's Anhui

  5. Heavy snow sweeps NE China

  6. COMAC gets 50 more new orders for C919

  7. 'Cold War' to hit screen

  8. Carl Warner's Foodscapes

Most Popular


  1. Commentary: Turning point for growth
  2. Airline outlook: Less turbulence, more profit
  3. Playing well with concepts can influence world
  4. 'Eagle Dad' defends extreme parenting methods
  5. Commentary: Venture no further
  6. Chinese MSN users hope for clarity, stability
  7. Public has right to real emergencies information
  8. Analysis: China's social financing stable
  9. Smartphones disconnect people
  10. Recalling Faulty Vehicles

What’s happening in China

Heavy snowstorm wreaks havoc in NE China

  1. 341 giant pandas living in captivity: report
  2. China's pension insurance covers 459 mln people
  3. Snowstorms affect 7,500 people in NE China
  4. Internet users call for more help for elderly
  5. 1 bln yuan to award elite graduate students