CCIEE Holds the 85th Monthly Economic Talk

On 29 July 2016, CCIEE held the 85th Monthly Economic Talk on the theme of “Analysis of Economic Situation in the First Half of the Year”. CCIEE Vice Chairman Wei Jianguo presided over the talk. Ms. Chen Wenling, Chief Economist and Assistant CEO of CCIEE, Mr. Yao Yudong, Director of Financial Research Institute of the People’s Bank of China, and Mr. Wang Jun, Deputy Head of Information Department of CCIEE, respectively gave a speech.

Ms. Chen Wenling noted that with the new order, new structure and new dynamics of the global economy emerging, the world has entered an era of globalization 4.0 advocated and promoted by China and driven by the emerging economies. Innovation has become the main driver of global economy and the national strategy of each country. Not all economies are in the doldrums. As the gravity of the global economy shifts to the Asian-Pacific region, Asia in particular, some Asian countries, such as China, India, Indonesia and Bangladesh remain energetic and resilient.

Mr. Yu Yaodong expressed the view that although Britain’s exit from the EU will have a spillover effect on China’s and global economy, it will also create a favorable environment. Therefore, China’s economic growth will remain in a reasonable range. This said, however, China needs to make more efforts to promote structural reform on the supply side.

Wang Jun held that this round of weak inflation of CPI has by and large finished; more attention should be paid to deflation risks in the future. Regulatory measures need to be strengthened to maintain prices at a stable level. For example, we need to ensure sufficient supplies of the main agricultural products, fight speculative attempts to hyper up agricultural prices by exploiting the flooding in south China, speed up reform in the pricing of key public services, cut overcapacity faster and de-leverage in a more orderly way, take credible steps to deal with “zombie companies” in key industries, pursue prudent, slightly easing and appropriately flexible monetary policies, and implement stable macroeconomic policies to stabilize social expectations.

After giving the speeches, the experts answered questions from the media and audience. Some of the CCIEE researchers and representatives of the CCIEE member organizations, businesses, research institutions and the media attended the event.