Liu Zhiqin, a senior fellow of the Chongyang Institute for Financial studies at Renmin University of China (RDCY), was interviewed by CGTN, talking with the reporter of the Global Bussiness program over the topics at China`s economic in 2nd half.
Q: Why do you say support will still be strong for the economy?
A: I think the figure is quite normal. It’s within our expectation. After the first 6 months high development in China, I think July or August will have a slide down turn in the economic growth. Because in this season we have seen the weather condition in China is quite different, such as flood and extremely heat. The bad weather condition makes many people are out of work. Another reason is that the demand from outside and international demand are limited in this season. There are also some negative influences on our outcome of the figures in July. However, generally speaking, the figures in July are still positive and in good shape. The basic figures of development are very positive. There is no need to worry about the future development, especially in the second half of this year. We have enough reasons and conditions to have a better performance in the next 6 months.
Q: The consensus seems to be that the second half, compared to the first half, will have a weaker growth. Why don’t you agree?
A: In the second half we will have two big events. Firstly, the 1 October celebration, we should have a positive outcome to welcome the day. Secondly, the CCP Conference will also take place. We should have a good performance to show and to tell the whole world how great efforts that China had made to develop our economy.
Q: China is running up a big trade surplus, and in fact, the US is expected to overtake the EU these year, to become Chinese biggest trade partner. That’s not going to make the US politicians happy. How is that going to impact our trade relations?
A: There are some impacts on bilateral relations, but they are not so serious. American politicians should realize what’s the real reason behind trade deficit or surplus. Because it’s a structure problem. In China, surplus comes from the labor intensive products, and deficit comes from the high-technical products from America. That’s the reason why we have such surplus and deficit. If we pay more attention to restructure the trading relations, I think this problem could be well improved. Especially for American side, they should make trade reform and restructure to deal with the demands of the international market.