2016年CRI Hard Landing Fallacy ＂No Way＂ in China: Economic Regulator

Xu Shaoshi head of National Development and Reform Commissionsays despite the slower pace of economic growth, China is not in for a hard-landing.

" But even with a growth rate of 6.9 percent (last year), it still proved that the economy operated within a reasonable range as we set our target at around 7 percent. Meanwhile, employment growth was also stable as 13 million more people were employed, over 3 million more than the target we set. Income increased steadily 1 reaching a pace of 7.4 percent, faster than economic growth. CPI rose gently at 1.4 percent last year while our environmental quality kept improving. Therefore I can say that our economy operated within a reasonable range."

Despite this, rating agency Moody's recently cut its outlook on China's credit rating from "stable" to "negative."

Xu says the world should adopt a new perspective when judging China's economy, which is robust 2 and still has growth potential.

He also refutes the belief in some quarters that China's economic slowdown is dragging down the world recovery.

"The quantity of our imports is increasing steadily despite a declining value. Our import value still ranks second in the world. Our outward investment is increasing. Last year our non-financial outward investment reached 118 billion U.S. dollars, up 14.7 percent. Our investment in countries alongside the 'Belt and Road' increased by 18.2 percent. This is also China's contribution."

The official says the Chinese and global economies will be confronted with challenges and difficulties in 2016, but China has confidence in maintaining a stable growth rate.

"In terms of the economic operation this year, we're already well-prepared mentally and all works are ready. We will focus on advancing supply-side structural 3 reform while enhancing consumer demand moderately. We will continue to develop new markets, invest in new areas, and generate new momentum 4."

The official notes that China will also actively 5 boost effective investment to shore up economic growth and help industrial restructuring.

"The central government plans to invest 500 billion yuan this year. We will focus on key areas and weak spots to support especially projects involving the residential 6 sector 7, grain and water conservancy, railways in regions of central and west China, technological 8 innovation, energy conservation and environment protection, education, medical care, culture, sports as well as poverty relief".

In response to concerns over job losses, Xu stresses that eliminating industrial overcapacity and economic transition will not cause mass unemployment.

"Firstly, although some of our enterprises are struggling, they are taking effective measures to keep job positions. Secondly 9, our economic aggregate 10 is increasing. Therefore, every point increase in our economy will drive more employment than it could before. Third, tertiary industry has more employment producing power. Fourth, mass entrepreneurship and innovation are booming and creating more jobs. Last but not least, the mobility 11 of the labor 12 force between regions and industries is increasing."

Xu adds that the central government is spending money to help state-owned businesses to resettle laid-off workers.

In terms of global economic cooperation, the official says China will step up exports of its advanced equipment and production capacity to countries joining the China-proposed Belt and Road Initiative.

" By a preliminary estimate, 65 countries are situated 13 along the 'Belt and Road' routes. Many of those nations are facing major social and economic tasks including infrastructure 14 construction and industrial upgrading during the process of industrialization and urbanization. The Belt and Road Initiative proposed by China fits those ambitions."

The minister notes that genuine progress is expected in railway construction and the transfer of industrial capacity to other countries and regions.