An overlook from the inside of Shanghai Global Financial Center which was open on Aug. 30, 2008.(Xinhua Photo) Photo Gallery>>>
BEIJING, Sept. 3 (Xinhua) -- China is experiencing a
temporary economic slowdown rather than a downturn, said Cheng Siwei, former
vice chairman of the Standing Committee of the National People's Congress,
raising the prospect that adjustments might be necessary.
"The domestic inflation, severe winter weather,
devastating earthquakes and the weakening global economy in the first half year
have pushed the country's economy to the edge of decline, but it is getting
better", Cheng said in a China Central Television talk show aired on Tuesday
night.
He said according to the business cycle theory, any
economy develops in cycles, and 10 years constituted a cycle for China's
economy.
The decade from 1990 to 2000 saw about a 14 percent
growth of gross domestic product (GDP) in the first two or three years and then
a slowdown to about 8 percent in the remaining period. Economic growth continued
rising from about 7.3 percent per annum in 2001 to 11.4 percent in 2007.
The estimated GDP growth rate in 2008 may slow to
around 10 percent. Worry over a downturn for the Chinese economy reemerged.
However, he didn't agree with the view that the
Chinese economy faced a watershed, noting that this year's growth rate, compared
with 2007, meant only a temporary slowdown lasting two or three years.
The country's decision makers now face the problem of
combating inflation while at the same time boosting economic growth in the rest
of the year to ensure a steady and fast economic development. He said the two
courses could be both contradictory and mutually stimulating. It is the strategy
which could maintain a strong momentum for investment, consumption and exports
while controlling inflation at six to seven percent that matters, he said.
The government said last week it would stick to an economic
policy that focuses on curbing inflation for the rest of the year.
