The Chinese economy should enjoy steady growth in the next five years, with huge potential.
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Khiem Do, head of Asian Multi-Assets Group at Baring Asset Management, said Asia markets would continue to benefit from a strong regional economy underpinned by Chinese growth.
Everyone marvels at the growth of the Chinese economy in the reform era, the period beginning at the end of 1978.
Lutts likes Sinopec because of the underlying strength of the Chinese economy, evidenced by 10% growth in oil consumption and a 15% rise in electricity consumption in 2003.
On the plus side, the presence of the state has lent a stability and long-term perspective to the investment and growth of the Chinese economy, which is not just reminiscent of the keiretsu in Japan but also the family holdings in the chaebols in Korea.
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Likewise, the continued growth of the Chinese economy, and its ultimate ascendancy to the top of the global economic pyramid, will afford Chinese companies the opportunity to build a strong base in their home country that will position them to become globally dominant as well.
"This implies that the Chinese economy is still on track for gradual growth recovery, " he added.
They realised that, thanks to reforms initiated in the 1970s, the Chinese economy was launched on a path of sustainable growth.
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The last few years have witnessed the rapid growth not just of the Chinese economy but in particular of the Chinese state owned enterprises (SOEs).
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Barclays Capital said this week in a note to clients that it expects that the Chinese economy is bottoming out this quarter, with GDP growth of under 8 percent before rising above that in the third and fourth quarter.
Yet why is the Chinese economy still moving at a brisk 7% to 8% growth rate?
Shen also believes inflation is the biggest problem currently facing the Chinese economy because everything else can be solved through continued strong economic growth.
The Chinese economy has now enjoyed four consecutive years of at least 10% growth, the NBS said.
The currency peg of the Yuan against the dollar, which China has enforced with varying degrees of exactitude over the past few decades, has helped the Chinese government exert greater influence over the growth and contours of its economy.
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Despite this, the Chinese export-based economy, a manufacturer to the world, has clocked growth of 8.7% in 2009.
In a year when the global economy struggled, Chinese entertainers benefited from the country's brisk economic growth rate of more than 8%.
The days of China being a cheap labor mill that relies on exports for growth are giving way to the rise of the Chinese domestic economy.
Margins increased from 1.4% at the start of the decade to a peak of 9.4% as the global economy marched straight up through 2006 on the back of the Chinese growth engine fueled by a credit-obsessed American consumer.
This kind of demand, especially in a place where counterfeit luxury goods are easy to come by, has led to the assumption that prospects for parts of the Chinese consumer market remain strong despite rapidly-slowing growth in the overall economy.
"For the last 20 years, the Chinese government has been saying they have to change the growth mode of the economy, " Mr. Yang notes.
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To reverse the downturn in growth, Chinese leaders have decided to step up their investment in the economy, especially infrastructure.
As a result, exports, which account for about 31% of the Chinese economy and support 200 million jobs according to the World Bank, are unlikely to create substantial growth in either the short or medium term.
Their baseline projections look for 8 percent export growth, assuming a stabilizing U.S. economy, robust emerging markets recovery, and improving Chinese demand.
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