Argentine experts expect China´s two sessions to boost confidence in economic recovery

Source: Xinhua | 03-06-2009 15:50

BUENOS AIRES, March 5 (Xinhua) -- While China's lawmakers and advisors gather in Beijing for their annual meetings, Argentine economists and experts on China said on Thursday that if the delegates support the government's plan to expand investment and boost domestic demand, they will also uplift people's confidence in the world economy.

Against the backdrop of the global downturn, this year's two sessions in China seem to be all the more important, said Gustavo Gerardo, head of an organization of Asia-Argentina relations, in an interview with Xinhua.

The meetings, the Second Session of the 11th National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC), have recently become a worldwide focus of attention.

The Chinese government has already taken active measures to counter the crisis, which play a crucial role in stabilizing the world's financial market and preventing the global economy from a fast decline, said Gerardo.

Just as what it did during the 1997 Asian financial crisis, the Chinese government acted positively and responsibly this time to soothe the world economy amid dreadful crisis, he said.

He said China's responses were "adequate" and he is confident that delegates attending the ongoing two sessions in Beijing will back the government's stimulus plan to stoke domestic demand.

Such support will be of vital importance to boost investors' confidence, Gerardo said, adding that the growing domestic demand will not only guarantee a relatively fast growth of China's economy, but also fuel the recovery of the world's ailing economy at large.

Eduardo Oviedo, expert on Chinese affairs in the National University of Rosario, told Xinhua that China has made substantial decisions that are significant both economically and politically for the fight against the financial turmoil.

Apart from just hailing those decisions, the two sessions will also set the orientation of all new policies, Oviedo predicted.

The global downturn poses grave challenges to China whose gross domestic product (GDP) relies heavily on export, he said.

But he also spoke highly of the Chinese government's decisive plan to expand domestic demand, adding that 30 years after reform and opening-up, China's national strength, valuable experiences and its enormous market potential will facilitate the implementation of the expansion policy.

Those who can stimulate most effectively the demand of domestic market in gloomy times are likely to be the quickest to find a way out of the tunnel, the expert said.

Argentina itself is a country famous for its agricultural production and export, so its people are also concerned about China's ongoing agricultural reform and any new policies that might be enacted during the two sessions, Oviedo said, adding that reforms may greatly enhance efficiency and bring about changes to the world agricultural production patterns.

Jorge Castro, director of Argentina's Institute of Strategic plan, pointed out that the production capacity of the United States and the demand of China are the two hinges for a worldwide economic recovery.

He said quick moves by the Chinese government to boost investment and domestic demand will help steady the national economy.

China's actions in the wake of the crisis have drawn the attention of Latin American countries.

China is a key buyer of the world's primary products, therefore a quick rejuvenation of the Chinese economy will be conducive to the stabilization of primary goods prices in international markets, which is also in the interests of countries in his region, said Castro.

Editor:Zhang Ning