China’s Economy Has Potential to Sustain Fast Growth

%3CP%3E%3CFONT%20face%3DVerdana%3EIt%20is%20still%20possible%20for%20China%20to%20maintain%20fast%20economic%20growth%20despite%20a%20growth%20rate%20that%20has%20decelerated%20for%20the%20past%2013%20consecutive%20quarters%2C%20according%20to%20an%20opinion%20piece%20reprinted%20in%20the%20China%20Securities%20Journal%20on%20Monday.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20opinion%20piece%2C%20penned%20by%20Justin%20Yifu%20Lin%2C%20former%20senior%20vice%20president%20and%20chief%20economist%20of%20the%20World%20Bank%2C%20proposes%20that%20emerging%20markets%20have%20been%20impacted%20by%20shrinking%20demand%20from%20high-income%20economies%20since%20the%20global%20financial%20crisis%20erupted%20in%202008.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHowever%2C%20China%27s%20huge%20deposit%20and%20foreign%20exchange%20reserves%20will%20provide%20the%20world%27s%20second-largest%20economy%20with%20great%20potential%20for%20realizing%20industrial%20upgrading%20and%20infrastructure%20improvements%20that%20could%20sustain%20fast%20economic%20growth%2C%20according%20to%20Lin%27s%20analysis%20that%20first%20appeared%20on%20the%20Project%20Syndicate%20website%20on%20Aug.%205.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChina%27s%20gross%20domestic%20product%20%28GDP%29%20growth%20slowed%20to%207.6%20percent%20in%20the%20January-June%20period%20of%202013%2C%20the%20weakest%20first-half%20performance%20in%20three%20years%2C%20but%20it%20was%20in%20line%20with%20market%20expectations%20and%20above%20the%20government%27s%20full-year%20target%20of%207.5%20percent%2C%20data%20from%20the%20National%20Bureau%20of%20Statistics%20%28NBS%29%20show.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22It%20is%20not%20necessary%20to%20be%20too%20pessimistic%3B%20the%20bottom%20line%20in%20the%20government%27s%20two%20previous%20five-year%20plans%20was%207%20percent.%20We%20should%20prepare%20for%20a%20fairly%20long%2C%20difficult%20period%2C%20as%20that%20is%20the%20cost%20of%20reform%2C%22%20said%20Yu%20Yongding%2C%20an%20economist%20with%20the%20Chinese%20Academy%20of%20Social%20Sciences%2C%20a%20government%20think%20tank.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChina%27s%20full-year%20annual%20growth%20rate%20eased%20to%207.8%20percent%20last%20year%2C%20its%20weakest%20since%201999%2C%20due%20to%20volatile%20external%20markets%20and%20the%20government%27s%20domestic%20tightening%20to%20tame%20property%20prices%20and%20inflation.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIn%20his%20commentary%2C%20Lin%20wrote%20that%20some%20developing%20countries%20have%20faced%20even%20harsher%20economic%20conditions.%20Brazil%27s%20GDP%20growth%20rate%20dove%20from%207.5%20percent%20in%202010%20to%200.9%20percent%20in%202012%2C%20while%20India%27s%20dropped%20from%2010.5%20percent%20to%203.2%20percent%20during%20the%20same%20period.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHe%20attributed%20China%27s%20recent%20sag%20in%20economic%20development%20to%20%22external%20and%20cyclical%20factors.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Facing%20an%20external%20shock%2C%20the%20Chinese%20government%20should%20and%20can%20maintain%20a%207.5%20percent%20growth%20rate%20by%20taking%20counter-cyclical%20and%20proactive%20fiscal-policy%20measures%2C%20while%20maintaining%20a%20prudent%20monetary%20policy%2C%22%20he%20wrote.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELin%20expressed%20his%20belief%20that%20ongoing%20technological%20innovation%20and%20industrial%20upgrading%20will%20give%20China%20a%20boost%20in%20achieving%20an%20annual%20GDP%20growth%20rate%20of%208%20percent%20in%20years%20to%20come%2C%20because%20it%20is%20less%20costly%20for%20developing%20countries%20to%20engage%20in%20research%20and%20development%20%28R%26amp%3BD%29%20through%20learning%20or%20importing%20advanced%20innovation%20experiences%20than%20by%20investing%20in%20%22costly%20and%20risky%20indigenous%20research%20and%20development.%22%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELin%20forecast%20that%20China%27s%20average%20GDP%20growth%20rate%20will%20stand%20at%208%20percent%20in%20the%202008-2028%20period%2C%20provided%20the%20country%20sticks%20to%20deepening%20market-oriented%20reform%20to%20solve%20structural%20problems.%3C/FONT%3E%3C/P%3E%3CFONT%20face%3DVerdana%3E%0D%0A%3CP%3E%3CBR%3E%28CRI%20English%29%3C/P%3E%0D%0A%3CP%3E%3C/FONT%3E%26nbsp%3B%3C/P%3E