The Chinese Economy has received a lot of attention in the past six months and not in a good way. Most are worried that the wheels are coming off. No doubt, this story will be closely watched for the rest of 2016. But there has always been some hype on the slowdown. For all intensive purposes, the economy is still strong and resilient and this is what the Head of the Chinese Central Bank Zhou Xiaochun also feels in this wide ranging interview with Caixin.
There are indeed differences in the views of the economic situation and financial market developments. It is necessary to analyze the current state of China’s economy in a comprehensive and objective way. Overall, the performance of the economy remains within a reasonably strong range. Against the backdrop of a slowing world economy and global trade, and heightened fluctuations in the international financial markets, China maintained a growth rate of 6.9 percent in 2015, still relatively high compared with other countries.
The change in China’s growth rate can be attributed in part to weak performance of the global economy. It also reflects the structural adjustment policies adopted by the Chinese government. Such a change is conducive to the ongoing efforts in China to pursue more sustainable and quality growth and is beneficial to the rebalancing of the global economy. Going forward, China will strengthen structural reform, especially supply-side reform, in order to strike a better balance among economic growth, structural adjustment and risk prevention, and to achieve sustainable and steady development.