Chinese officials see growing global risks in 2013
2012-11-16 15:22:29
China faces growing global economic risks in 2013, with the looming fiscal cliff in the United States, Europe's debt crisis and rising trade tensions all threatening growth in the world's second-biggest economy, senior officials warned on Friday.
The comments came a day after China unveiled the new leaders who will take charge of the world's most populous nation for at least the next five years. China's economy is showing signs of recovery after seven successive quarters of slowing growth that leave it on course for its weakest full year of expansion in 13 years.
"Uncertainties in the global economy will increase further in 2013, especially in Europe and the United States - China's largest export markets," Vice Finance Minister Zhu Guangyao told a financial forum in Beijing.
He cited the recent IMF forecast that the fiscal cliff in the United States - shorthand for budget cuts and tax hikes that could take effect next year - could amount to US$800 billion and cut could US growth by 4.8 percentage points in a worst case view.
"It could drag China's economic growth down by 1.2 percentage points," Mr Zhu said, adding that he hoped Washington lawmakers would come to an agreement on taxes that would keep the US economy on track.
He reaffirmed China's support for the euro zone's efforts to deal with its debt crisis and revive the bloc's economy.
Ms Wu Xiaoling, a senior lawmaker and former vice central bank chief, said China faced rising trade protectionism as the global economy continued to struggle.
"We need more trade to help the recovery from the global crisis, but trade protectionism is on the rise and nationalism is on the rise," she said.
She said that China must press ahead with market-based economic reforms and political reforms to help sustain long-term economic growth.
Economists say the seven-quarter long cyclical downturn in China's growth ended in the third quarter, when growth dipped to 7.4 per cent year-on-year. A tepid rebound to 7.7 per cent is anticipated in the fourth quarter but full-year growth remains on course for its slowest year since 1999.