CCIEE Holds 57th Monthly Economic Talk

CCIEE Holds 57th Monthly Economic Talk

On March 10, 2014, CCIEE held the 57th Monthly Economic Talk at Beijing Merchantel Hotel, under the theme of The New Impetus of China’s Economic Development. Zheng Xinli, Permanent Vice Chairman of CCIEE, presided over the meeting.

Wang Yiming, Vice President of the Institute of Macroeconomic Research under the NDRC (National Development and Reform Commission), Jin Zhongxia, President of Financial Research Institute, People’s Bank of China, Liu Shangxi, Vice-President of Fiscal Science Research Institute, Ministry of Finance, and Zhang Yongjun, Deputy General-Director of the Economic Research Department of CCIEE, delivered their presentations.

Wang Yiming pointsed out that the slowdown in China’s economic growth does not necessarily imply that there has been a remarkable slack in the driving force of China’s economy. In fact, the impetus of China’s economy is restructuring itself and new impetus is forming. In the future, consumption will make more contribution to China’s economic growth.

Jin Zhongxia believesbelieved that China’s macroeconomic condition is very stable and thus, the possibility of a widespread debt crisis is minimal. The exit of the US QE policy will help China to balance its international balance of payment. Furthermore, the fall  decrease of international hot money will give China’s central bank the opportunity to reduce its deposit reserve ratio.

Liu Shangxi arguesargued that a scientific evaluation system is required to assess China’s economy, rather than just a few indicators. He reckons reckoned that Chinese economy is undergoing structural economic transformation and hence, it is faced with various uncertainties and risks. The current economic reform needs to be taken into account when assessing China’s economic development. Despite the risks involved in Chinese economy, China has a good variety of tools and measures which can be implemented to deal with them.

Zhang Yongjun states stated that over-capacity has had negative impact on Chinese economy, but such kind of impact is far not as severe as the western institutions and what scholars have claimed. Upon successful completion of interest marketization and financial supervision reform, China will be able to minimize financial and economic risks and thus, China’s economy will not end up with a hard-landing.

At the end of the talk, experts took questions from the audience and media.

Researchers and representatives from corporate member companies of CCIEE, other research institutions and the media attended the meeting.