Expert on GDP growth target, innovation

CNC
Added On March 6, 2017

Now we'll continue to look at the newly released government work report. After achieving 6.7 percent GDP growth last year, China has now set its target for 2017 at around 6.5 percent, a 25-year low for China. Some doubt if the Chinese economy can continue to be a powerful engine for global economic recovery.
 
Joining us now is Professor Wang Yiwei from Beijing's Renmin University. Hello,Professor Wang, how would you respond to these doubts? Can China still drive global recovery?
 
SOUNDBITE (ENGLISH) WANG YIWEI, School of International Studies, Renmin University of China
Definitely. Compared to the former time, China's economy grows 6.7%. Maybe is not two digital of the growth again, but in the world, still the fastest of economic growth. Particularly for 1 trillion US dollars' GDP, this is a remarkable achievement Well, the rate will Slow down because of the structural reform. So China is not just an engine for the world's economic growth, but also a powerhouse of the structural reform, like G20 summit in Hangzhou indicates that the world's economy also needs structural reform. Structural reform is every country's job. Otherwise, the world's economy will be unhealthy and economic growth will be unsustainable. So China is also taking a leading role in this regard.
 
We have noticed that Chinese investments in foreign countries have been increasingly steadily in the last few years. What do you think the reasons are for this? What's your take on the situation?
 
SOUNDBITE (ENGLISH) WANG YIWEI, School of International Studies, Renmin University of China
Well...when China joined WTO also many concerns that the foreign industries will destroy Chinese national industries. Like...today, the Chinese investments in many other countries. Their concerns are like similar. But it depends on what do you do and what kind of investment. Firstly, what do you do. I think competition is healthy. You need to open your market is not your protective that can keep you strong. Secondly, I think..what kind of investment. Chinese investment, I think, is more focus on the local, reality, the demands. And also according to the local, even the regional law. Like in European countries. Because the members of European Union, so our investment in European Union countries needs to according to European law and also the local law.
 
In this year's annual work report, the government highlighted innovation once again. It seems innovation is increasingly important in China. Professor Wang, why do you think that is?
 
SOUNDBITE (ENGLISH) WANG YIWEI, School of International Studies, Renmin University of China
Well, there are three basic reasons why China focused on innovation. Firstly, today there are billions of people join in the capitalization and industrialization, so we can not just rely on traditional model, traditional economic laws. Otherwise, we can solve more and more problems. Secondly, I think China focused on that because the comparative advantages of the Chinese... made in China and created by China as more rely on technology institutional innovation, not just labor or capital. And for other countries, also similarly. And certainly, I think the world also need structure reform and pay more attention to innovation. Otherwise, the world resources will be used up and economic laws are healthy and sustainable.