|Economist Lin Yifu, a member of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC), gives a lecture about economic situation after a panel discussion of the second session of the 12th CPPCC National Committee at Kuntai Hotel in Beijing, capital of China, March 4, 2014. (Xinhua/Zhang Yuwei)|
"Recently, there are voices bad mouthing China, saying China's economic growth is unsustainable because of its internal system and mechanism. But the slowdown was caused by external factors, and China has potentials to keep the growth rate of 7.5% to 8% in the following years. " Justin Lin said in Beijing on March 4. 2014.
Noted economist Justin Lin, a member of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC), gives a lecture about economic situation to other members at Kuntai Hotel in Beijing, capital of China, March 4, 2014.
After analyzing the economic situation of Japan and Germany, Lin pointed out the faltering global economy was the major reason that triggered the decline of China’s growth rate since the first quarter of 2010.
Lin said that facing the sluggishness of world economic recovery, China must depend on stimulating domestic demands to keep economic growth. Consumption is important, but China’s economy should exactly rely on investment. China has many opportunities for investment to get high return, including some projects in upgrading the industrial sector, improving the infrastructure and environmental protection.
Lin stated that China is still a developing country in the process of transition, and has problems in system and mechanisms. China implemented the reform with a binary plan that resulted society’s discontent. “Now it is time to change; if China wants to deepen the reform, the transition from a binary plan to an effective market economy must be implemented in accordance with objective economic laws.”
Lin also said that local debt is still under control.
On questions about real estate sector, transformation of labor-intensive industry and other related issues, Lin said that China is now in the stage of urbanization, so there will be a huge demand for house, as a result there is no doubt that the real estate sector will continue to grow, but people should be aware that many financial crises are caused by housing bubbles. But he didn’t predict if the housing price would continue to increase.
"Single flower doesn’t make spring," President Xi Jinping said at Boao Forum for Asia last year The words have inspired Lin. For him, it means China advocates the spirit of one world. Lin hoped China could avoid the middle-income trap and be able to offer a set of theory that helps Africa, South Asia and all countries to achieve industrialization and modernization.
The article is edited and translated from 《林毅夫为政协委员上“经济课” 驳“唱衰中国论”》, source: ECNS