Editor's notes: China's slow but better than expected growth for the first quarter has garnered attention recently, amid concerns that expansion in the world's second-largest economy will deteriorate. Many remain upbeat about China's economic prospects but warn risks ahead, given that the country aims to shift from export-driven growth toward consumption-led growth. Here our forum readers offer their take on the latest China Q1 GDP numbers.
One can always argue the pros and cons of economic policies, but using traditional economic logic and analysis to judge China's economic performance, its future prospects, will always fall flat on its predictions. In the past 30 years I have seen loads of predictions on how the Chinese financial system is going to crash (but China took the advice from western economists to heart, and went through a painful reform program, and came out with a quite healthy financial system); turned out it was the US banking system that crashed and caused the worldwide financial meltdown in 2009 / 2010, and is still trying to recover from that fiasco today, Then there were other predictions : collapse of the Chinese property market, collapse of this and that industry - all based on conventional economic theories.
But the fact speaks louder than words - so far, the Chinese government has managed the economy, through its severe down turns during the Asian Financial crisis in 1998 - 2002, worldwide financial meltdown in 2009 / 2010, quite well. I don't want to bother everyone here on how they did what and when, but the fact is they managed their economy better than anyone in the world today.
Losing steam is hardly the word I would use to describe China's economy today. But it seems Sophia didn't pay attention to the macro-economic policies laid out in the recent general meetings of both the party and the People's Congress Annual meetings. China's economy is going through another transformation, making major adjustments, focusing on high valued added goods, and turning its attention to pollution control, etc. Keep your eyes - this 7.5%, or even 7% GDP growth will have a profound impact on the Chinese economy and this time, with positive results - stronger economy, clean environment, and better overall living conditions to be had by all.