US expert hails China's economic development

Added On October 13, 2017

Farok Contractor, a distinguished professor at Rutgers Business School, said that China's growth rate has come down from the previous eight or 10 percent, but it is still a very healthy rate and that should be the envy of any other country in the world. 

The expert lauded China's continuous efforts in liberalizing its foreign exchange market.
SOUNDBITE(ENGLISH) FAROK CONTRACTOR, Professor, Rutgers Business School
"In the past five years there's been a lot of significant achievements such as the inclusion of the RMB or the yuan in the IMF SDR basket, which is putting China on the path to becoming a recognized internationally tradable currency."
Contractor also hailed China's efforts in poverty reduction and RMB internationalization. 
SOUNDBITE(ENGLISH) FAROK CONTRACTOR, Professor, Rutgers Business School
"It is a wonderful story in China where the poverty rate is now in terms of the World Bank's criterion for grinding poverty, which is equivalent to $1.90 per person per day. Today there only about 50 million Chinese left who are in grinding poverty, so that's a wonderful accomplishment not just for China but for the whole world."
Rather than adopting large-scale stimulus, China has been intensifying efforts to shift the economy towards consumption, services and innovation.
The expert believed such structural reform could help the country to maintain a more sustainable growth rate.
SOUNDBITE(ENGLISH) FAROK CONTRACTOR, Professor, Rutgers Business School
"Innovation is another area where China has invested a lot of resources, a lot of emphasis in universities and companies to do more R&D, file more patents. China has arrived on the scene as one of the innovators of the world, that is been an achievement."
According to official data, China's economy expanded 6.9 percent in the first half of 2017, with consumption and services, and new innovation-driven economic sectors taking up larger roles.
The International Monetary Fund (IMF) on Tuesday expected the Chinese economy to grow 6.8 percent this year and 6.5 percent next year, both 0.1 percentage point higher than its previous forecast in July.