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Confidence in Chinese economy

By Jiang Shixue | China Daily | Updated: 2013-09-17 08:19

Restructuring and releasing domestic demand will ensure the country maintains sustainable and balanced growth

It used to be said that if the United States sneezed, the rest of the world caught a cold. However the influence of the US economy on the global economy seems to be waning, as the US slowdown has had little discernible effect on growth in most other countries, except its neighbors, Canada and Mexico. The conclusion is that the spillover effects of the US' economic slowdown are limited and the global economy in the future might decouple from the US economy.

It has also been said that in the 1990s, whenever the world caught a cold, emerging markets got pneumonia. But when the G7 economies got pneumonia in 2008, emerging economies just caught a cold. When the US sub-prime mortgage crisis developed into a global financial crisis, emerging economies, without exception, were subject to the impact of this financial tsunami, however, the intensity was less than expected. Through introducing large-scale stimulus plans, emerging economies realized recovery in a relatively short period of time.

Confidence in Chinese economy

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