The policy of economic macro control introduced by the Chinese government in the latter half of last year is "good for the world, especially developing countries," Tang Min, chief economist with Resident Mission of Asian Development Bank in China, said Saturday.  

Tang said that economists were initially worried about the possible negative influence that might be exerted by China's economic macro control over the regional economy, but judging from economic performance in the first three quarters of the year, "there have been almost no such negative elements."

 

The Chinese economy showed a growth of 9.5 percent from January to September this year, coupled with a welcome drop in the growth of certain overheated sectors.

 

Tang said that foreign trade was an important signal of China's adaptation into the world. China has kept a strong momentum in foreign trade, with the country's trade surplus decreasing as a result of increased imports. The country has made a positive contribution to the world's economy, he said.

 

China is now the world's third largest import market and the largest import market in Asia.

 

"Foreign investment has also increased, which shows that China's economy has provided plenty of opportunities to foreign investors, who haven't lost their confidence in the Chinese economy because of the government's macro-control policy. Foreign investors are more concerned with medium- and long-term development. Major fluctuations in the Chinese economy will be bad for foreign investors," Tang said.

 

In the past several months, China issued a series of policies to encourage domestic enterprises to invest overseas. Tang held that it would be a "win-win" deal for developing countries, because they need funds and more employment opportunities, and China has been struggling to find new outlets for its capital, technologies and products.

 

As China loosened some of its restrictions on overseas investment, more Chinese companies have made such investments, contributing to the world economy.

 

Since the latter half of last year, the Chinese government has adopted a range of measures including limiting money supply, tightening land administration and limiting the scale of credits and loans.

 

Tang said that judging from present performance, China has kept a normal economic development while at the same time restricting the unhealthy part of the economy.

 

He said China should continue its macro control to maintain the healthy growth of Chinese economy.

 

Though prices have continued to rise, but "they might come down in the next two months," he said. But in the medium and long term, China will inevitably face the pressures of inflation from rising oil and energy prices and increased labor costs, he said.

 

(Xinhua News Agency October 31, 2004)