China steps away from export-led growth
Updated: 2011-04-11 15:41
By Hua Xiuping (chinadaily.com.cn)
The global financial crisis in 2008 and subsequent currency wars have also reminded us that external demand is not always a reliable source in maintaining or creating job opportunities. Regarding future employment policy, governments definitely need to focus more on stimulating domestic demand.
Finally, now most of world's foreign exchange reserves are concentrated in East Asia, with China being top in the list. The risks of foreign exchange reserves have also attracted significant international attention and policy debates. The greatest concern of the Chinese government, which holds a significant proportion of American government bonds, is the solvency of the US government. 'Self insurance' may be just a time bomb!
In conclusion, the consensus seems to be that we shall reform the domestic economic growth model and the previous export-led model must be replaced! This quarter's trade balance figure is an excellent start and let us keep on moving.
Dr Xiuping Hua, assistant professor in Finance, Nottingham University Business School (NUBS), University of Nottingham Ningbo China (UNNC)
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