(August 16, 2012, New York) China should ready plans to respond to near term risks in an economy facing significant downward pressure, but keep the broad policy focus on longer term structural adjustments, the official People's Daily said in a front page editorial on Friday. This will be expanded at upcoming China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", New York, October 2nd (http://www.ChinaLeadersForum.com).
"For some uncertain factors that might bring new shocks to the economy we should be prepared in the short-term - but keep making long-term plans," the editorial said, without detailing the risks it envisaged.
Evidence has mounted in recent weeks that China's economy is struggling to overcome strong global headwinds, with economists' expectations of a second half pick-up being pushed steadily further back, leading some to say that the government's full year growth target of 7.5 percent may be in jeopardy.
Around a dozen local and city governments have been reported by Chinese media as announcing huge, multi-year investment plans in recent weeks, though they broadly seem to be restatements of official five-year plans, not new spending.
Nevertheless they have fuelled market talk that China is readying a giant government spending scheme to lift an economy mired in its worst downturn in three years, forecast to see growth cool to a 13-year low of 8 percent in 2012.
China rescued its economy from a prolonged global recession in 2008/09 by rolling out a 4 trillion yuan ($635 billion) investment stimulus. But that left 10.7 trillion yuan worth of debt racked up by local governments to meet obligations under the national plan, drove a frenzy of speculation in real estate and was a key factor in a surge in inflation to a three-year high of 6.5 percent in July 2011. Economists fear it also likely added to a swathe of inefficient production capacity that China was already struggling to turn around.
China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", October 2nd, New York City, will provide attendees with the responses to the above-mentioned questions and the most up-to-date review of where the Asian giant stands and the challenges and opportunities for businessmen looking to expand their business with China when others only see growth contraction. Recognized experts, regulators, and strategists, will return to China Leaders Forum 2012 in its fourth edition to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.
China Leaders Forum 2012 is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to firstname.lastname@example.org.