CHINA (OBSERVATORY) – President Xi Jinping insists on the need to increase domestic demand in China in the context of worsening external political and economic situation, including the trade war with the US. However, the role of the contradictions between Beijing and Washington should not be exaggerated, a Chinese analyst told Sputnik.
The trade war triggered by the United States may effectively deprive China of much of its export earnings, but nothing serious will happen, said in an interview with Sputnik Liu Dan, Financial Institute Chongyang at the People’s University of PRC.
“Right now, China faces three major problems: excessive credit, environmental pollution and the gap between the rich and the poor. And the trade dispute with the United States is basically only an external factor and nothing more, “said the interlocutor of the agency.
And to add that China was well aware that contemporary competitiveness was based on high technology.
“So, we must move forward on the path of innovation. […] However, it will no longer be export revenues but those of domestic consumption which must henceforth constitute the basis of innovations, “said Liu.
And remember that over the last five years, an average of 13 million new jobs were created each year, while 68 million Chinese people had crossed the poverty line.
“Unemployment in cities and the countryside has stabilized at 5%, which is well below the same rate in the industrialized countries. The consumer price index is around 2%. As a result, almost two-thirds of China’s economic growth returns to consumption in 2017. Thus, regardless of the evolution of the external situation, in its development, China will rely on its own strength. summed up Sputnik’s interlocutor.