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Review: FBCS Christmas Luncheon Seminar - Chinese Economy at Crossroads
Published: Mon / December 12 / 2011
Last Friday, nearly 30 attendees enjoyed the insightful presentation by Mr. Frank Peng, renowned economist in China, who is a professor at both Tong Ji and United Nations International University. He is also the acting director of the World Bank Studies Center of the University.
During the seminar Mr. Peng discussed about the challenges and the opportunities of today's China. Despite China's strong historic economy growth, the country was hit hard by the financial crisis in 2008. Mr. Peng stressed that even though the drop in growth was not large in relative terms (GDP decreased from 10,6 % to 6,8 % in 2008), the real impact was huge. Every percent drop meant millions of unemployed people.
In order to overcome the crisis and stimulate the economy, China has taken major fiscal and monetary measures. The rescue plan launched in 2008 considered 4 trillion yuan, of which a big share has been spent on transportation and infrastructure (铁公基 - 'iron cock').
However, Mr. Peng states that to achieve sustainable development, China has to do more. China needs to actively promote innovation and entrepreneurship, as well as, develop its social security. Furthermore, China should boost up its domestic consumption while controlling inflation and protecting the environment. Finally, China has need to optimize its capital flow to support healthy investment and growth.
In the end, Mr Peng points out that there are considerable business opportunities ahead. Promising areas include alternative energy, advanced materials, new generation IT and biotechnology.
Although this was the last event this year, we look forward to welcome you back in Spring 2012 with more inspiring topics and interesting speakers. Happy holidays and safe travels to all!