China’s Top Economic Planners Says Hard Landing Impossible

China’s top economic planning official on Sunday said it is impossible that the Chinese economy would have a “hard landing” — or a sharp slowdown after a period of robust growth — and offered assurances that it would continue to contribute to global growth, not hinder it.

Xu Shaoshi, director of the National Development and Reform Commission, said at a news conference that China’s economy has inner flexibility and abilities to resist risks.

“I can say, China’s economy will absolutely not have a hard landing,” Xu said. “The so-called predictions for a hard landing will definitely come to nothing. Please rest assured, this possibility does not exist.”

Last year, China’s growth slowed to a 25-year low of 6.9 percent — but Xu said that this was still one of the fastest expansion rates in the world. On Saturday, Premier Li Keqiang said in a report to the annual National People’s Congress that authorities set a growth target of 6.5 to 7 percent for this year.

In his remarks at a news conference on the congress’ sidelines, Xu said China would remain stable despite sustained turbulence in the global economy.

“We are completely capable of running China’s economy within a reasonable range,” Xu said. “We are fully confident about the prospects for development.”

“Our contribution to the global economy is very obvious,” he added. “We are still a major engine for the growth of the world economy.”

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza