MOSCOW, November 9 (RIA Novosti) — China’s economy, the second largest in the world, faces certain risks “but they are not that scary”, Xi Jinping, the country’s president, said at the ongoing Asia-Pacific Economic Cooperation (APEC) CEO Summit in Beijing, Reuters reports.
“Some worry whether China’s economic growth rate will fall further and whether it can overcome difficulties,” Xi said, as quoted by the news agency. “There are indeed risks but they are not that scary,” he stated, adding the economy was resilient enough to overcome any obstacles it faces, according to the Associated Press.
China’s economy enjoyed almost uninterrupted double-digit growth for three decades. However, it has slowed down to 7.3 percent growth in the third quarter of 2014, the lowest in five years. China’s annual GDP growth is estimated to be approximately 7.4 – 7.5 percent, according to the World Bank. However, in July, the International Monetary Fund lowered China’s projected economic growth in 2015 to 7.1 percent. Although the trend is worrying, the country’s leadership is convinced that China will remain one of the most vibrant economies globally. “Even at growth of around 7%, regardless of speed or volume, (we) are among the best in the world,” Xi stated, as quoted by the Guardian.
Chinese authorities have launched a series of reforms in monetary and fiscal policies, as well as infrastructure and housing to tackle the slowdown. “These reforms are gradually being put into effect project by project,” Xi stated, as quoted by the newspaper. “Once the bow is drawn, the arrow cannot be put back in the quiver; we will resolutely deepen reform.”
China has shifted to what Xi called a “new normal”. This phase of the country’s development is characterized by a more stable growth “driven by more diverse forces”, Xi explained, as quoted by by China’s state news agency Xinhua. The economy has become less dependent on investment and foreign trade, while domestic consumer demand has grown, Xi added.
“We are also certainly aware that the new normal is accompanied by new challenges and new problems,” Xi acknowledged, as quoted by Reuters. “In fact, some potential risks are already emerging,” he added without going into details.
The remarks were made ahead of a two-day summit of APEC leaders.
