Although China cannot rise as the savior of the floundering world economy, its stable growth will offer more than just confidence amid deep economic gloom.
China wrapped up its most important economic meeting of the year with an agreement to focus on maintaining stable economic growth while preventing a potentially destabilizing rebound in inflation next year amid the “extremely grim and complicated” global outlook.
Economic targets mapped out at the meeting also include improving the quality and efficiency of growth. Rather than blindly seeking fast expansion, China is shifting more focus toward achieving sustainable development.
Its longer-term goal is to wean itself off the current export-driven and fixed asset investment-based growth model by encouraging consumption at home.
Given the worsening Eurozone debt crisis, feeble recoveries in other major economies, chaos in financial markets and challenges in China’s domestic policy, maintaining stable growth will not be an easy task in 2012.
Although China’s development has far outperformed other major economies’, it’s not problem-free because of the ripple effects of globalization.
Growth has slowed for three consecutive quarters and many forecasts say it will dip further in 2012. Trade prospects were described as “grim” with China’s major trade partners in the doldrums.
Under such turmoil, the commitment of stable growth is a reassuring force for the world economy.
China has been seen as a possible engine to help shore up world economic growth, a role it played three years ago, when strong growth here — backed by a 4-trillion-yuan (630.91 billion U.S. dollars) stimulus package — helped avert the worst of a global recession.
With less than half of the United States’ output, China’s contribution to the global GDP was around 50 percent in 2009, the worst period of the global financial crisis, and over 30 percent in 2010.