“China’s economic growth potential is immense,” said CKGSB Associate Dean, Professor Li Haitao, at the Asia-Pacific Financial Forum (APFF) hosted by Aju Business Daily and Hong Kong Wenweipo on March 27, as he maintained a positive outlook on the future of the Chinese economy. Professor Li emphasized that the golden age of the Chinese economy has yet to come, and that the Chinese economy still has enormous growth potential. Professor Li described that the ’13 billion Chinese citizens’ desire for improved life’, ‘development gap between the East coast and the inland area’ and ‘the Chinese government’s willingness towards economic reform’ to be the main drivers for this growth.
Professor Li commented that east coastal areas such as Shanghai are as competitive as developed cities such as New York, Seoul and Tokyo. In contrast, inland regions such as Lanzhou are being deteriorated and have lower income standards compared to the east coast region. However, he claimed that this means that the inland regions have much more room for development and can be one of the new growth drivers for China.
Professor Li also pointed out that the Chinese government has wasted resource allocation by monopolizing key industrial sectors such as banking, communication, and energy. In contrast, he highlighted that the industrial sectors which are free from the government control such as the internet industry are showing dynamic and creative development. He commented that the government is making efforts to give autonomy to private sectors where resource allocation by the ‘invisible hand’ will be the growth engine for the Chinese economy.
Meanwhile, Professor Li still remained maintained his positive outlook despite several issues raised on the Chinese economic crisis such as the Chinese real estate market collapse, corporate bankruptcy and shadow banking. He commented that turning the crisis into transformation is the driving force for growth. So far, China has grown by managing crises with transformation and reformation. Since the Cultural Revolution back in 1960s when the Chinese economy was in the worst of situations, China has been leading small changes such as dissolving the People’s Commune and introducing the contract farming system. As a result of these measures, China has been making incredible developments, and this makes it even more difficult to imagine the potential growth of China in the next 20 years. He said that China is expected to grow further in response to the ongoing structural transformations.
Read [The 7th Asia-Pacific Financial Forum] CKGSB Associate Dean, Li Haitao “Chinese Economic Growth Potential is Immense”on Aju Business Daily website