The Chinese economy will remain robust after the 2008 Beijing Olympics as has happened in some other host nations,
said renowned economist Li Yining.
China is only halfway to full
industrialization and the thirst for investment will not subside when the
Beijing Olympics closes, said Li at the ninth New Year Forum held in Beijing
Huge amounts of investment is required to rejuvenate the old
industrial base in northeast China and the country's underdeveloped west, said
the economist, adding that hi-tech industries are also a new hot area that will
attract new investment.
New energy resources, bio-technology, new
materials and new generations of electronic products will draw huge sum of
money, said Li.
Strong investment after the Beijing Olympics will keep
the Chinese economy growing fast, said the economist.
Li says the
challenges facing the economy include slow growth of farmers' income, shortages
of resources and environmental deterioration.
These problems can be
solved, said Li, calling for more private businesses to be established to break
up monopolies and system reform of science and technology development. He also
advocates the development of a recycling and tighter supervision over the
As the largest sporting event in the world, the Olympics
are expected to bring huge business opportunities to the host nation but some
analysts are worried the Chinese economy may slump when this apparent driving
force expires. Some people have even delayed buying homes as they expect the
housing prices to drop after 2008.
(For more biz stories, please visit Industry Updates)