China to continue to grow in near future

Experts say that China's economy will continue to grow at rates above global averages in the near future, despite market fears sparked this week by the yuan's dip and economic policy adjustments.

Argentine asset management and consulting firm Delphos Investment published a special report Friday which basically dismissed the "panic over domestic recession" in China as "exaggerated."

"We understand that the engine of the Chinese economy is changing to domestic consumption, with implications for its growth rate and ... its imports. We also believe that China is gaining efficiency in its use of resources," Delphos said.

The report also includes the opinions of other Argentine analysts who believe China's economic policies are aimed at maintaining growth while adjusting to the new normal, meaning the transition from export-driven growth to consumer-driven growth.

The idea that China's economic policy adjustments are nothing to fear was supported by Dante Sica, former mining secretary and head of Abeceb Consulting.

"The People's Bank of China has been very active recently toward its objective to recover growth, first by depreciating the currency, and second by providing lower interest rates and injecting liquidity," he told Xinhua.

In the medium term, Sica said, analysts expect to see "less dynamism," but "continued middle-class growth boosting domestic consumption."

Gustavo Girado, director of the Asia and Argentina consultancy, said Beijing has "decided to grow more gradually ... and stimulate domestic consumption."

The opinions of the Argentine analysts have been echoed by their international counterparts.

While the Asian giant won't see the same galloping growth rates as in recent years, the country will grow some 7 percent this year, former World Bank senior vice president and chief economist Justin Yifu Lin told media in Argentina.

In an interview published Saturday by La Nacion daily, Lin, who was in Buenos Aires to give some seminars, said "China is going to maintain a 7-percent growth rate for the next 10 years. While that means a 25-percent reduction over the growth we had in recent years, we should keep in mind that the 7-percent growth is among the highest rates in the world."

"China alone is going to contribute a fourth of global growth, which will reach a scant 4 percent," the economist said.

China, Lin said, will transform itself from a medium-income country to a more urbanized high-income country in the next 25 years, and that process is what will give it an edge over the world's developed nations.

"They already have leading industries and infrastructure, and have completed the process of urbanization," Lin said. "That's what distinguishes China from high-income countries: it has more opportunities for investment, especially in infrastructure building, urbanization and environmental protection."

"The investments they will make in China will generate more jobs and higher income, which will ensure greater consumption," Lin said.

That news is particularly good for Argentina, which last year exported some 4.5 billion U.S. dollars' worth of foodstuffs to China, according to the daily.