Economy

Chinese economy to keep high growth amid challenges: Experts

(Xinhua)
Updated: 2010-10-14 15:17
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STOCKHOLM - The Chinese economy will keep rapid growth for another 10 to 20 years, and at the same time face challenges, said experts at a seminar held by Stockholm China Alliance (SCA) on Wednesday.

Under the theme of "Is China a Sustainable Engine for the Global Economy," experts from China and Sweden exchanged views on the current macroeconomic situation in China as well as China's mid-term challenges and opportunities.

Anders Ahnlid, director general for trade from the Swedish Foreign Ministry, said that China is emerging as a leading force in the world economy.

"The financial crisis and the recession have no doubt accelerated this process, and now we are facing a situation where we have to deal with a huge economy," Ahnlid said.

He added that Sweden consistently seeks to resist trade protectionism and firmly opposes restrictions to imports to the European Union market.

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Lu Feng, deputy dean of National School of Development at Beijing University, said that China has achieved a V-shape or quick and strong economic recovery with the four-trillion-yuan ($586 billion) stimulus package by the Chinese government after the outbreak of the global financial crisis.

"China has taken a proactive fiscal policy with large flexibility in monetary policies using diversified tools to control the bubbles," Lu said.

Professor Yao Yang, Lu's colleague, also predicted that China will continue to develop at a rate of at least 8 percent in the coming ten or more years.

But Yao also warned that obstacles, such as an aging population, lie on China's road to development.

The four-month-old SCA, co-formed by three Swedish think tanks, is an interdisciplinary organization engaged in policy research on a stronger China. It aims to promote communication between politicians and academics, with a focus on sustainable solutions.