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Sunday, October 26, 2008

China immunes to the toxicity of global financial crisis

Although global financial crisis has devastating effects on vast numbers of people, but many expatriates in China are finding they are largely immune to its toxicity and stabilizing an unstable global economy.


The fundamentals of the Chinese economy remain sound and can cope with the challenges caused by the worsening global financial crisis, nevertheless it should not underestimate the impact (of the crisis) on China's economy, Central Bank governor Zhou Xiaochuan told legislators Sunday.

He Said, despite the impact of the global financial crisis, China should recognize overall economic condition is good and financial institutions are generally strong, with increased profit-making and risk-fending abilities. Market liquidity on the whole is ample and the financial system is sound and safe.


Continuing urbanization and industrialization, which generate huge investment demand, as well as the large domestic market and low-cost labor, the basic economic growth track, will not deviate much, he said.

Lin Yifu, senior vice-president and chief economist of the World Bank said, the impact of the global financial crisis on China would be "limited". In the era of globalization, no place is safe but China's economic condition is one of the best compared with others, he said.

Economists said, China's GDP growth slipped to 9 percent in the third quarter from 10.1 percent. As the global economy is expected to slowdown, China's growth may weaken further, although it may avoid a hard landing.

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