Quotes

“Stabilizing economic growth ‘top priority’’

Premier Wen Jiabao said on June 10 that stabilizing economic growth is the most pressing matter currently facing China， Xinhua reported.

Policies and measures to stabilize economic growth currently include boosting consumption， diversifying exports and promoting investment， Wen said while meeting representatives from research institutes and companies on July 9 and 10.

Wen said the structure， quality and cost-effectiveness of investment should be given greater importance， adding that investment should be used to improve livelihoods and help the country develop scientifically.

“Guard against investment fever”

China needs to find a balance between supporting a slowing economy and too much stimulus that may further unbalance the economy， the Bank of Communications said on July 18， China Daily reported.

“Currently， China faces more risks from inflation than deflation，” said Lian Ping， the bank’s chief economist.

Lian said global demand may improve in the second half， as the euro zone stabilizes， and the United States and Japan experience moderate recovery， which will reduce the pressure on China’s exports.

Domestically， he said， a healthy job market and growing individual incomes suggested that the economic slowdown is still under control.

“Policymakers should guard against possible investment fever caused by misused stimulus funding， as well as a possible rise in prices after economic growth rebounds，” Lian said.

“China has ample capacity to avoid hard landing”

China has sufficient policy maneuver to respond to economic slowdown and the consistency of policy measures is noticeable in its reforms， a senior U.S. Treasury official said on July 18， according to Xinhua.

“China has ample capacity to avoid a hard landing，” said Lael Brainard， the Treasury’s under secretary for international affairs， said at a Washington-based think tank.

“Chinese authorities have been very pragmatic，” she said， adding that it is“very important” for Chinese policymakers to support domestic consumers and continues the rebalancing.

“China’s rebalancing to benefit emerging Asian economies”

The rebalancing of China’s economy will benefit emerging Asian markets like the Philippines， Thailand and Vietnam， according to a recent study issued on July 17 by the global finance firm Citigroup， Xinhua reported.

According to Citi， China’s plan to shift from an investment- to a consumerdriven economy means Asian countries with low labor cost and strong logistics will benefit as global manufacturers seek new locations.

“Indeed， most of the beneficiaries are likely to be Asian: Thailand， India， Philippines， Vietnam and possibly Indonesia all score reasonably well here，” Citi said.

“China building up rare earth reserves”

China is spending billions of yuan buying domestically mined rare earth to build up its national strategic reserves， an official was quoted as saying by Xinua on July 13.

Shi Yaoqiang， an official in the rare earth division of the Ministry of Industry and Information Technology， told China Daily that the nation started the purchasing program last year， mainly targeting heavy rare earth， without disclosing details such as the amount and the price.