Yin Yanlin: China’s economic growth momentum structure is undergoing positive changes

China News Service, Beijing, November 12 (Tao Siyue) Yin Yanlin, a member of the National Committee of the Chinese People's Political Consultative Conference, said at the 17th Caixin Summit held in Beijing on the 12th that China's economic development has provided important support for world economic growth, and the power structure of China's economic growth is undergoing positive changes.

Yin Yanlin pointed out that positive changes are reflected in two aspects: first, the transformation and upgrading of traditional industries; second, emerging industries such as artificial intelligence and new energy continue to grow, technological breakthroughs accelerate industrialization, and continue to open up new growth space.

When talking about the current challenges facing China's economy, he believed that the expansion of domestic demand should be placed in a more prominent position, continue to promote the stable and healthy development of the real estate market, and coordinate the relationship between the cultivation of emerging industries and the upgrading of traditional industries. At the same time, we must closely track changes in overseas markets and be wary of pressure on external demand adversely dragging down domestic growth.

On November 12, the 17th Caixin Summit was held in Beijing, with many guests speaking. Photo by Tao Siyue

He also mentioned that the current global economy is facing the "three highs" challenges of high interest rates, high debt, and high uncertainty. This situation may partially ease in the short term, but fundamental repairs will take a long time.

In terms of high interest rates, Yin Yanlin analyzed that although inflationary pressure has eased in some economies, inflation is still highly sticky. Factors such as energy price fluctuations and supply chain disruptions may once again impact the price level. The central banks of major economies have been cautious and restrained in cutting interest rates. After the Federal Reserve raised interest rates, many countries tightened monetary policies, and there was great uncertainty about the space and pace of interest rate reductions.

High debt is also a medium- to long-term problem. Yin Yanlin said that the current global debt stock is still at a high level, interest payments continue to squeeze out the fiscal space of various countries, and the financial resources of many economies are consumed by debt interest payments. Even if the interest rate falls in the future, it can only reduce the burden of interest payments, but cannot fundamentally resolve the risk of debt stock. It is difficult to expect that this problem will be solved in the short term.

At the same time, high uncertainty will remain a challenge that the global economy needs to deal with prudently. He believes that the superposition of multiple factors such as geopolitical conflicts, supply chain impacts, and trade barriers have jointly pushed up market volatility.

"The world economy is interconnected and interdependent." Yin Yanlin emphasized that in the stage of rising uncertainty, it is even more important to adhere to open cooperation, maintain the stability of the multilateral system, and ensure the smoothness and stability of the global industrial chain and supply chain. Only by working together to make the "cake" of cooperation bigger can we create a more lasting and stable development environment for the world economy. (over)