China's measures to cut trade surplus good for world economy: U.S. economist

Updated 2018-05-20 21:00:01 Xinhua

China has implemented measures to cut its trade surplus and restructure its economy, which is good for the world economy, Adam Posen, president of Peterson Institute of International Economics (PIIE), told Xinhua in an interview.

"China's economics has changed on the fundamentals," Posen said. "The saving share of the Chinese economy is much lower and the consumption share of growth has been growing."

If China continues slowly reducing its rate of savings, it will be in the interests of both China and the world. It is a clear result of policy and makes the economy more stable and efficient, said Posen.

"China is on the right track on the broad macro-issues," he said.

According to Posen, China's global surplus is between 1 percent to 2 percent of its GDP, which is a very reasonable figure for any country. "It is very different from what we've seen 10 or 15 years ago," he said.

China's current account surplus stood at 164.9 billion U.S. dollars in 2017, accounting for 1.3 percent of GDP, according to the State Administration of Foreign Exchange (SAFE). Before the global financial crisis in 2008, the percentage share was about 10 percent.

In the first quarter of 2018, China had a trade surplus of 326.2 billion yuan (about 51.2 billion U.S. dollars), down 21.8 percent year on year.

China has reaffirmed its stance that it does not seek a trade surplus and is continuously expanding imports, which will bring new opportunities for other countries to share the country's market dividends.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58August 19 2019 09:27:54

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16August 19 2019 09:27:54

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18August 19 2019 09:27:54

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords