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Academics: China's clout in world economy growing

Author  :  Zhang Junrong     Source  :    Chinese Social Sciences Today     2016-12-13

Experts spoke highly of China’s positive influence on the sluggish world economy at a recent forum, saying that emerging countries like China are expected to add a measure of security to the uncertain global economy.

The fourth RUC World Economic Forum was held at Renmin University of China in Beijing on Nov. 26. A report was released that focuses on the world economy under dual impacts of economic and financial cycles.

According to the report, the global economy is in the stage of structural reform, and its recovery will be slow.

“The world economy has been uncertain since 2008, going through a slow recovery period or economic downturn,” said Tong Jiadong, vice-president of Nanjing University.

Wang Jinbin, deputy dean of the School of Economics at Renmin University, said turbulence in the financial market has become a key factor affecting the recovery of the world economy. Wang said policies that foster global cooperation rather than those bucking the trend of globalization will play a decisive role in recovery.

Due to rapid changes in the world economy and constant turmoil in the international financial market, global interest and exchange rates will constitute a major issue, said Wang Yu, deputy director of the Research Bureau under the People’s Bank of China. “A clear understanding of the development vein of interest and exchange rates will guide the international financial market and the world economy.”

Wang Yu predicted that the dollar will enter a new cycle of appreciation, and prices of international commodities will remain low in the near future, so it is necessary to stay vigilant against latent low inflation and growth in the world economy.

“The global financial sector is undergoing severe tests,” said Wang Jinbin, urging export-oriented economies to promote exports.

Tong noted the major trends of global economic restructuring. From the perspective of trade, protectionism is on the rise. In terms of investment, capital supply to developed countries and direct investment in developing countries are not as active as before, Tong said.

Financially, quantitative easing has been widely adopted since the 2008 crisis, while the real economy is not growing evidently, which has triggered worries about “over-finance.” In addition, the reorganization and intensification of regional integration will also make world recovery more uncertain, Tong added.

Zong Liang, a lead researcher at the Bank of China, pointed out the need to find certain factors amid uncertainties. At present and in the future, China should maintain steady growth to provide basic conditions for the development of other spheres, Zong said.

It should also emphasize supply-side reforms that are needed for economic transition and the “Belt and Road” initiative, which will lend market support to the Chinese and global economy, Zong added.

“The Chinese economy is moving to the center of the world economy and gradually developing into one of the leading roles in the world economic arena,” said He Yaomin, vice-president of Renmin University. The country’s growth and influence on the world economy are becoming increasingly important, He added.

“China has put forward a systematic plan for supply-side reform to optimize its economic structure and unleash vitality,” Wang Jinbin said.

Editor: Ma Yuhong

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