Experts endorse Xi's economic confidence

Experts have thrown their weight behind a speech by Chinese President Xi Jinping in which he expressed confidence in China's economic future and vowed to help shape brighter Asia-Pacific cooperation. "Impetus comes from reform, regulation and innovation," Xi said on Monday, while addressing the Asia-Pacific Economic Cooperation (APEC) CEO summit on the Indonesian resort island of Bali, noting that the recent slower speed of China's economic growth is within a reasonable range. The world's second-largest economy geared down growth to 7.6 percent in the first half of 2013, arousing worries over a possible slump and impacts on the country as well as the whole Asia-Pacific area. Xi, however, stressed that the slowdown is an intended result of China's own regulatory initiatives. "An annual speed of 7 percent is enough to realize China's goal of doubling gross domestic product (GDP) and income per capita between 2010 and 2020," the president said. Yuan Gangming, a researcher with Tsinghua University, agreed that the slowing pace was temporary and said that huge potential will be released through stronger consumption, which will lead to a higher economic growth rate. The president's optimism was helped by the fact that the quality and efficiency of China's economic development are improving steadily. Xi said domestic demand contributed 7.5 percentage points to the country's economic growth, showing a shift from over-reliance on investment and exports to dependence on domestic demand, other than solely pursuing GDP surges. Zhuang Jian, an economist at the Asian Development Bank, said this movement would generate sustainable development for China and the entire Asia-Pacific, which have more vigor than the United States and Europe after their experience of the global financial crisis. The Chinese leader also attributed his confidence to the robust domestic engines of ongoing urbanization, education improvement, scientific innovation and human-oriented development, as well as the sound prospects of the Asia-Pacific. To continue the smooth and sound economic development pace, Xi said that China will implement a more proactive opening-up strategy that underlines balance in foreign trade, a fair environment for foreign companies and overall planning for global and regional opening up and cooperation. "Rainbows follow the wind and rain," said Xi, adding that the country will continue promoting social justice while striving to tackle challenges that hinder development. Kuang Xianming, director of the Research Center for Economy with the China Institute For Reform and Development, said Xi's comments set a keynote for the country's reform and policy making in the coming years. "The robust domestic driving engines weigh the most in a country like China, with its huge population," Kuang said. "Xi's speech showed determination to push reforms but also the need to remain alert to risks." After visits to Indonesia and Malaysia, the Chinese president arrived in Bali on Saturday afternoon to attend the APEC meeting, his first appearance at the summit since taking over the presidency in March. He expressed belief that the high level of capital, information and talents in the Asia-Pacific has already provided China with a favorable environment, and said the country will firmly uphold regional peace and stability and help cement the foundation for a win-win situation in the entire region. "China participated in and benefited from globalization 35 years ago when it started opening up," Kuang noted, "and its sound development will stimulate a win-win process to benefit the Asia-Pacific region and the world."