Chinese economy maintains solid growth pace

Despite many worries in the first half of this year, the economic data in the third quarter showed that China's economy was still keeping a steady and solid growth. China's imports in September increased 7.4 percent from a year ago, accelerating from August's 7-percent rise, according to the General Administration of Customs. Taking into account exchange rate fluctuations, the country's foreign trade volume rose 3.3 percent in September, down from August's 7.1-percent rise and July's 7.8-percent rise, said Zheng Yuesheng, spokesman.of the General Administration of Customs. Although challenged by a complicated global economic situation, he said the country's foreign trade was stabilizing with improved structure. China's net exports, fixed-asset investment and retail sales, had all had a stable performance since the beginning of the third quarter, said Xu Pingsheng of the State Information Center, a top government think-tank. On the other hand, about 60 percent of China's listed companies expected their profits to rise in the third quarter due to cyclical recovery and fast growth of emerging industries, a report of the China Securities News said on Sept. 23. China is set to release its third-quarter GDP data on October 18. Analysts expect growth to exceed 7.5 percent from a year ago. "Growth in China is expected to meet the official indicative target of 7.5 percent this year. The short-term outlook is improving as industrial production data suggests further strengthening of output in the third quarter," according to a World Bank report. "China is likely to see further rebalancing of its economy by slowing credit growth and investment, although the pacing is likely to depend on overall growth," said the report. While maintaining macro-economic stability, experts suggest China should continue to pursue reforms to improve the quality and efficiency of economic development. As substantial uncertainties remain in the global economic outlook, the policymakers have to strengthen their efforts, particularly in setting comprehensive growth and reform strategies, said Yi Gang, deputy governor of the People's Bank of China. Yi noted that conditions are in place for China to undertake further interest rate liberalization and capital account convertibility, and the Chinese authorities remain committed to exchange rate reform.