Yao Jingyuan:

China Ensures A GDP Growth of Eight Percent in 2009

According to Yao Jingyuan, chief economist with the National Bureau of Statistics, China will be able to achieve its target of 8 percent growth in gross domestic product (GDP) this year, though difficulties lie ahead. He said the countrys economy demonstrates better recovery than in the U.S., Japan, Europe and other members of the BRIC group, which includes Brazil, Russia, India and China. China has maintained an average annual growth of 9.8 percent for 30 years since the adoption of the reform and opening-up policy. The current financial crisis slowed the growth to 9 percent last year, but the global economic downturn did not change the fundamental aspects of Chinas economy, as shown in its industrialization, urbanization and marketization.

MOC:

Chinas Probe “Not Revenge” for Hefty Tire Tariff

Recently Chinas Ministry of Commerce (MOC) launched anti-dumping and anti-subsidies investigations into chicken products and some automobile products imported from the U.S. The investigations are based on Chinas relevant laws and regulations. Not long before that, U.S. President Barack Obama signed off on a punitive duty to all passenger vehicle and light truck tires imported from China for a period of three years. The timing prompted some media outlets to speculate this was a retaliatory move by the Chinese government. In response, Ministry of Commerce Spokesman Yao Jian said the investigations are in accordance with the countrys anti-dumping and anti-subsidy regulations. According to Yao, the ministry received requests from 17 member companies of the China Animal Agriculture Association to launch investigations into chicken products imported from the U.S.

Xie Guozhong:

Exorbitantly High Housing Prices an Economic Spoiler

Exorbitantly high housing prices were recently fingered by independent economist Xie Guozhong as a significant obstacle to economic progress in China. He pointed out that it is difficult to maintain the growth model of past years.Currently many people park their savings in stocks and real estate, and the government is also liberal with its investments. All this leads to a chronic imbalance in Chinas economy. He explained that the proportion of consumption in the countrys GDP has decreased by 10 percent in less than a decade and this problem makes it difficult for Chinas economy to develop further: “High housing prices exert an enormous pressure on people and encourage them to eliminate or reduce spending in other areas. When housing prices are about to fall, the government enacts measures to support them, therefore the real estate bubble persists. When the government has no more money to support the falsely maintained values, the real estate industry collapses, with a domino effect on the national economy.” He concludes that without allowing exorbitantly high housing prices to level off, there can be no sound adjustment of Chinas economy.