01:29 GMT +315 November 2019
Listen Live
    In this photo released by China's Xinhua News Agency, Japanese Prime Minister Shinzo Abe, second from left, and Chinese President Xi Jinping, second from right, meet on the sidelines of the G20 summit in Hamburg, Germany, Saturday, July 8, 2017.

    China's Economy Not Expected To V-Shape Rebound Soon, Expert Warns

    © AP Photo / Ma Zhancheng/Xinhua via AP
    Asia & Pacific
    Get short URL
    0 02
    Subscribe

    Judging from current GDP growth and the change of manufacturing purchasing managers’ index (PMI), China’s economic growth will not see a V-shape rebound though it has stopped falling, said Cai Fang, deputy director of the Chinese Academy of Social Sciences.

    The country's economic growth is declining as a result of rising labor cost, insufficient human capital and decrease in capital returns in the 21st century, especially in the first decade, Cai said at the 2017 Netease Annual Economist Conference held recently. 

    "The real growth of a healthy economy should conform to potential growth, just like a person's running speed is determined by their physical condition," Cai said. Based on downward potential growth, China's economy in the long term will slow down, he warned.

    China's economic growth is expected to present L-shaped trajectories in the long term, the economist said.

    This article was originally published in The Global Times.

    Related:

    We Can Work it Out? US, China Announce Intention to Strengthen Military Ties
    China Urges India to Abide by Border Agreements Amid Border Guard Skirmish
    Indo-China Trade War Looms Amid Simmering Border Standoff
    India, China Both Too Powerful to Be Defeated - Dalai Lama
    US-China 'Trade War': Is It Just a Diversion Tactic for Trump Voters?
    Tags:
    conference, human capital, economy, China
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik