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Is China wreaking havoc on the global economy?

By Gao Yinan (People's Daily Online)    14:34, February 25, 2016
Is China wreaking havoc on the global economy?

Once China's economic restructuring is finished, the Chinese economy is sure to offer a boost to the world economy, foreign ministry spokesperson Hua Chunying said on Wednesday.

In response to the conclusion of the European Union Chamber of Commerce in China that China's overcapacity is inflicting far-reaching damage on the global economy and China's economic growth in particular, Hua Chunying said that the very problem of overcapacity faced by some Chinese industries is just a temporary phenomenon on the journey of China's economic restructuring.

The rationale is that after over 30 years of high-speed growth, the Chinese economy has entered a new stage where its driving force is being converted and its structure readjusted. The Chinese economy is growing at a slower speed than before. That change is in line with economic laws and is also the result of the Chinese government's regulations.

"I wonder how the report reached the conclusion that China is ‘wreaking havoc on the global economy,'" said Hua.

In recent years, the Chinese economy has contributed 50 percent to world economic growth. Even in the last year, as the Chinese economy has been under increasing downward pressure due to external influences, China still created about 25 percent of world economic growth with a GDP that accounted for around 14 percent of the world's total.

However, the chamber president said that Beijing hopes to soak up overcapacity by selling its excess products to markets in Central Asia and the Middle East as part of the Belt and Road initiative. But those markets are not big enough to absorb all of China's overcapacity.

Hua Chunying said that in both the Belt and Road initiative and international cooperation on production capacity, China has been making joint efforts with other countries to make the best of each other's advantages and achieve mutually beneficial results. Therefore, the linking of the industrial chain and supply chain through production capacity cooperation will unleash new space and potential.

Because of that, some developed countries, including some E.U. countries, have taken an active role in trilateral production capacity cooperation with China and other developing countries.

"I believe that we can combine Chinese manufacturing advantages in cost and performance with developed countries' high-end technologies and developing countries' needs, in a bid to meet the interests of all and inject new impetus into the world economy," Hua added. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Gao Yinan,Bianji)

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