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China unable to serve as locomotive for world economy

(People's Daily Online)

14:59, January 14, 2013

The international community is generally optimistic about China's role in the world economy. The world economy is increasingly led by China, according to a report recently released by HSBC Global Research.

However, the international community has also overpraised China as the locomotive for the world economy. Experts noted that exaggeration of the global role of the Chinese economy is aimed at forcing China to shoulder more international responsibilities.

As a developing country, China still has a long way to go to become a real economic powerhouse. The international community should take an objective view of China's economic development situation, otherwise the sustainable development of both the Chinese and world economies will be affected.

Ulterior motives in exaggerating China's role

"It is understandable that they hope China to stimulate the sluggish world economy," said Xu Hongcai, deputy director of the Information Department at the China Center for International Economic Exchanges.

Due to urbanization, a large number of workers in China and other emerging countries have migrated from rural to urban areas, which have naturally created tremendous investment and consumption opportunities and greatly increased their demand for investment and technologies from developed countries. This is a great opportunity for both emerging economies and the rest of the world, said Xu.

However, experts noted that China is unable to pull the world economy out of the doldrums on its own, and certain people have ulterior motives in exaggerating China's role.

Xu said that China launched a 4-trillion-yuan stimulus package shortly after the global financial crisis erupted, and contributed greatly to the world economic recovery. However, China needs a moderate economic slowdown right now, and should pay more attention to the quality and efficiency of economic growth as well as the transformation of the economic growth model.

The West has overpraised China in hopes that China will increase overseas investment and boost their economic development. Under such circumstances, China must keep a clear head, and should not invest too much abroad or serve as the so-called locomotive for the world economy at the expense of its own sustainable development. It is unrealistic for the international community to expect China to launch another 4-trillion-yuan stimulus package, said Xu.

Experts also noted that the West has overpraised China also to force China to shoulder more international responsibilities such as supplying global public goods. They have also asked China to revalue its currency and make greater contributions to the world economic recovery.

Read the Chinese version: 中国当不起世界经济“火车头”(热点聚焦)
Source: People's Daily; Author: Luo Lan

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