China moving into era of stable growth: envoy
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The slowing growth of mainland China's economy reflects the need to return to a period of more stable rather than rapid expansion, which could take time to achieve, the People's Republic of China's ambassador to Thailand said yesterday.
During a keynote speech at Bangkok Bank’s programme for international knowledge talk, Guan Mu said his country was stepping forward into a hi-tech economy, which was dependent on many platforms.
The development of the Chinese economy has faced a challenge from many countries that are adjusting their economic policies by relying on domestic consumption to escape recession, he said, adding that those countries’ policy adjustments have had a slowing effect on China’s exports.
Mu said the changing economic situation in Asean meant that mainland China’s economy needed to be adjusted as well, especially since China was part of Asean + Three.
As to Thailand, the ambassador said the country had become a key import market for China, besides which the number of Chinese visiting the Kingdom was about 1.2 million per year.
This year, the embassy in Bangkok had expected the number of Chinese visiting Thailand to reach 1.8 million, but – with the number having reached 1.5 million by the end of April – it now believes some 3.6 million to 4 million visitors will have made the trip by year-end.
Moreover, many Chinese visitors to Thailand do not come for tourism, as many make the journey for investment purposes, he said.
Mu also lauded the coming relationship between Thailand and China in hi-speed rail projects, for which a bilateral agreement has been signed.
Thai banks – including Bangkok Bank – have also joined the agreement, which will bolster transactions in yuan, he said.
The development of the Chinese economy and the growing relationship between the countries will create opportunities for both nations’ businesses, and competition in the foreign-exchange market will be higher, he added.
According to Agence France-Presse, the World Bank has slashed its growth forecast for China’s economy this year to 7.7 per cent from 8.4 per cent, warning of a potential “sharp” slowdown triggered by a fall in investment.
The projection is lower than the 7.8-per-cent expansion the country recorded last year, which was its weakest in 13 years, and comes as a slew of data indicate the economy is struggling to pick up pace.
The main risk related to China remains the possibility that high investment rates will prove unsustainable, provoking a disorderly unwinding and sharp economic slowdown, said the World Bank.
