Fighting the odds

The Central Economic Work Conference that ended yesterday has sounded the clarion call for the Chinese economy to press forward in the face of unprecedented difficulties.

If the country's remarkable growth story over the past three decades is any guide, Chinese leaders' strong determination and confidence to take all necessary stimulus measures will prove crucial to steering the economy through the global financial crisis and economic recession.

By maintaining stable and relatively fast economic growth at home, the country is also set to make the most effective contribution it can to help the world economy to ride through the worst crisis in more than six decades.

Fiscal stimulus and coordinated interest-rate cuts by governments and central banks around the world have so far failed to reverse a worldwide economic slump. The World Bank just lowered its global growth projections, and predicted international trade will shrink next year for the first time in more than 25 years.

As a result, the Chinese economy, which relies heavily on exports for growth, has slowed down to grow by only 9 percent in the third quarter, after five years of double-digit growth.

Worse, emerging signs like a sharp decline in producer-price inflation as well as falling urban housing prices across the country last month indicate that the world's fourth biggest economy is cooling faster than expected.

Gloomy as the recent growth outlook is, however, the long-term growth trend of the Chinese economy remains robust, given the tremendous potential of the domestic market and Chinese enterprises' growing capacity to adapt themselves to changes.

Chinese authorities are obviously resolved to make the current crisis a rare opportunity to accelerate pursuit of a more scientific development path for social progress and economic growth.

Tasks listed high on the government's agenda include efforts to boost domestic demand, facilitate industrial restructuring, deepen economic reforms and improve people's living standards.

The country definitely needs to brace for rough times ahead.In the face of daunting challenges, it is necessary to keep in mind that the only thing we have to fear is fear itself. And the only way to overcome adversities is for all of us to rally together with a firm belief in our own strength.

(China Daily 12/11/2008 page8)