Thursday, October 9, 2008

Bent on our own undertakings

Currently, the specter of global financial crisis induced by the U.S sub-prime mortgage crisis has extended well beyond the financial sector and is hovering over almost all the economic entities. The individual consumption accounting for 2/3 of the U.S GDP has been on the conspicuous decline. The unprecedented financial turmoil also hit the E.U countries and Japan, dramatically lowering their import demands.

Generally speaking, the contradictions seen in the world economy and involving multi-parties are still accumulating and deepening, with many uncertain and unpredictable factors in existence. Overshadowed by the gloomy world economy, the foreign demands for China’s economic growth would correspondingly go down, and the production as well as operation in some industries and enterprises would also be thrown into great difficult.

With the shrinking of foreign demands, the situation featuring less orders and downward exports could not be reversed in a short period. China’ emerging economy, highly dependent on its foreign trade, will accordingly have to face a fresh challenge. We will, therefore, have to make all-out efforts to shake off the side effects brought about by the globe-sized financial turmoil by facing up to the harsh reality and beating difficulties confronting us. China’s government decided to adopt flexible but prudent policies in its efforts to promote economic restructuring and transformation, steering clear of economic ups and downs in a bid to ensure a steady and smooth growth in its exports.

Facing the world wide financial crisis, China, as the biggest developing country, will act in a responsible way, bent on its own work ensuring a long-term and stable economic growth, which will be a great contribution to the global economy. To combat the weakening foreign demands, China is endeavoring to expand the domestic demands, streamline the relationship between domestic demands and foreign demands, further increase the ability of resistance on risks, and sharpen the comprehensive competitiveness of China’s economy.

Since the beginning of this year, reconciliation has been enhanced in China’s national economic development, and the ‘three carriages’---investment, consumption and export—have tended to keep in balance. Domestic demands have thus far contributed more than ever to the GDP growth. The first three quarters of the year have yielded the highest growth rate for 12 years in retail volumes of consumer goods. The just closed National Day holidays, set on October 1 and lasting a week, has created nearly 420 billion yuan so far in consumption. All this put together has delivered a positive message in face of the dim economic outlook.

The downward spiral of foreign demands could to some extent affect China’s economic growth rate, nevertheless, China is an emerging but giant economy with a much broader horizon in terms of its domestic market, and its large population of 1.3 billion, especially its vast countryside with a population of more than 800 million, possesses great market potential to be tapped.

On top of that, China is at the accelerating stage of urbanization and industrialization, with more opportunities and more room for maneuver. The driving force propelling China’s economic growth is being shifted from the heavy dependence on foreign demands and exports to the dependence on the coordination of consumption, investment and export. It is convincing that, with the ‘three carriages’ going well and advancing in step with time and situation, China’s economy will be strong enough to brave the financial storms from outside, by standing at a new height, take advantage of ‘two markets’ and ‘two resources,’ and maintain a better and faster trend in its economic development.

By People's Daily Online

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