Having experienced a 30-year GDP growth of 9.5 percent on average, China's economic development, due to the momentum and conditions offered by its long-term consecutive growth, is expected to remain at similar high speeds in the next two decades, Prof. Hai Wen, vice principal of the Peking University said recently, adding that this will happen despite the fact that China's economy has entered a phase of facing problems similar to those of Japan's past economic growth patterns.
Prof. Hai Wen, also deputy director of the China Center for Economic Research, affiliated to the university, made the remark at a forum hosted by the Shenzhen-based Songhe Capital.
According to Prof. Hai, products made in China will continue to occupy a significant share of the international market because of China's comparative advantage regarding the international division of labor caused by the country's cheap and plentiful labor force.
Secondly, the massively scaled market in China can cause the scale effect, especially the instant scale effect, to come into play.
Thirdly, as China's transition into a complete market economy has not yet finished, reforms provoked in the process will further boost creativity and enhance productivity.
Fourthly, as China continues to open and world markets enlarge rapidly, China may obtain rare resources from this trend in various respects. Also fierce competition also may provide further opportunities for development.
Additionally, Prof. Hai pointed out four major challenges faced by China's economy. They are: maintaining a stable macro-economy, increasing enterprises' competitive power, maintaining stable political and social development, and smoothly adapting to the international environment.
For more details, please read the full story in Chinese (http://paper.cs.com.cn/html/2008-03/10/content_14817279.htm).
(China.org.cn March 10, 2008)
