Liu Zhiqin, a senior fellow at the Chongyang Institute for Financial Studies of Renmin University of China, was interviewed by CCTV on challenges in China`s economy on Oct.20.
Q: What`s your view on the numbers? What are the challenges?
Liu: Many people think that the new data of economic development is much better than expectation. The result is a positive outcome that came from a good policy one year ago. That means the good policy come into function now. So we can have such a good result. We have good and favorable policy in the past, especially we have taken active growth policy instead of passive growth policy.
For instance, we have made very good investment in many sectors not only in the property market, but also in manufacture sectors. From the figure, we can find the key point of the export increase sharply, and also from the export manufacture index is already over fifty percent from manufacture sector, that is different from before. That means in China we not only export all the low-end product, now we have already restore our tendence on exporting high-end product, and the manufacture stress is becoming more serious in China now. This is very good for our future.
Q: The government is trying to cool down the property market after prices soared in many cities this year. What are the other growth engines?
Liu: In the past quarter the investment in the property market has play an very important role for the GDP growth and the increase of the people’s income. But now in the first week of October, many cities have cooled down this market, because the high price could damage the pattern of the growth. Actually this policy still has positive impact at the moment. Because two years before, the passive policy in the governing of the property market, not only cool the market, but kill the market of property. Now the cooled market was restored and recovered. So the policy could have some negative impact in the short term, but in the long term, the policy could make benefit to the whole economic conditions of China.