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Business / View

Experts optimistic about China's economy, citing pro-growth policies

(Xinhua) Updated: 2015-07-24 10:50

Published by the State Council in May, the "Made in China 2025" initiative aims to accelerate the transformation of the Chinese economy from a manufacture-oriented one into an innovation-driven one, which protects intellectual property and focuses on environment-friendly development.

The "Internet Plus" action plan was elaborated in March by Chinese Premier Li Keqiang in the government work report, which strives to integrate the Internet into modern manufacturing centering on promoting e-commerce, the Internet industry and the Internet finance.

With the help of the initiatives, new Internet companies have mushroomed across China in the first half of this year, with the number of newly-registered companies increasing at a year-on-year growth rate of 19.4 percent.

"In 2015, China emphasized reforms and structural adjustments which proved to be effective," said Roberto Damas, economics professor at Business School Sao Paulo's Insper in Brazil, adding that the Chinese government should carry on with the reforms and structural adjustments.

"Structural adjustments are unlikely to be completed in the short run, which may need another decade," Damas said.

Experts also believe the Chinese economy, whose performance also impacts the world economy, would continue at a stable pace in the second half of the year.

"As the policies aiming at stabilizing the economy continue to take effect, the Chinese economy is expected to gain more momentum in the third quarter," Guo Feng, chief economist on China at the Institute of International Finance, told Xinhua.

"As the Chinese economy gradually stabilizes and gets better, it will also benefit the world economic growth," Guo added.

"China has a range of policies that will beneficially effect the economy in quarters to come: One Belt One Road, Internet Plus, and Made In China, to name a few," Ahern said, emphasizing that "continued focus on implementation of these policies will help mitigate Greece's turmoil in Europe and the continued low growth in the United States."

The Silk Road Economic Belt, together with the 21st-Century Maritime Silk Road, commonly known as the "Belt and Road" initiatives, were proposed by Chinese President Xi Jinping in 2013. The initiatives bring together countries in Asia, Europe and even Africa via overland and maritime networks, with the purpose of boosting infrastructure building, financial cooperation and cultural exchanges in those regions.

Ross Garnaut, an economist who was once an Australian Ambassador to China, suggested less stress put on the slowdown, which he believed won't decide the future of a country.

"Sustainable development with balanced structure, market reform and lower energy consumption is the key for China's future," he stressed.

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