|Benjamin Hun, Standard Chartered regional chief executive officer for Greater China (File Photo)|
Recently, during my travel in Western countries, I found that the further a country is awayfrom China, the more pessimistic it feels about Chinese economy. In my opinion, they havea biased view toward Chinese economy.
China is advancing its opening-up and the Chinese government is determined to adjust itseconomic structure. As a large economy, it’s not easy for it to promote its reform and at thesame time opening up to the world.
The slow-down of economic activities doesn’t mean the fundamentals of the economyworsen significantly. This would only make decision makers pay more attention to reformand adopt more active policies.
Though China faces difficulties in its reform, it recently promoted the internationalizationof the yuan through a series of reforms. The world will change its view about China as thecountry implements more reforms. China will gradually grow to a mature economy.
There is no denying its manufacturing sector is facing difficulties such as excess capacity,sluggish demand, higher labor cost, but the Chinese government is encouragingenterprises to climb up the value chains, to improve production efficiency and lowermanagement cost. China’s economy is transforming into a service-dominated andinnovation-driven economy. The service sector accounts for over 50% of the GDP.
China’s enormous market has attracted huge foreign investment. The consumptionpotential is still attractive to investors from Western countries. The “One Belt One Road”initiative will further promote trade and investment.
I think the pessimisstic views on China’s economy are based on misperception and bias.What I see in China is an open country, the government is determined to adjustment ofeconomic structure and broad reforms.
Reform can’t be plain sailing. Western countries should be constructive participants in theprocess. A sustainable, predictable, market-oriented Chinese economy is good to theworld.
The article is edited and translated from《西方对中国经济看法有失偏颇》, source: People’sDaily Overseas Edition, author: Benjamin Hun, Standard Chartered regional chiefexecutive officer for Greater China.