Don’t be scared by doomsday predictions
(Global Times) – The yuan has gone through seven days of consecutive depreciation, sending confusing signals around the world. The doomsday prediction for China’s economy has resurfaced again. It appears that uncertainty has become a popular tune in evaluating the country’s economic future.
Yet the rules may be unfit and the results inaccurate when measuring China’s large scale economic growth by Western concepts. The economic components in the West are much simpler, while business activity and implication here in China are more complicated.
For instance, a market crash may bring a much stronger impact in the West than to China. The same applies to the depreciation of a currency. China will feel it differently from its Western counterparts.
The economic foundation of Western society is actually quite limited compared to an enormous financial system it is supporting. This has made its structure more vulnerable and fragile. China, however, is the opposite. Although its economic foundation is not that sophisticated, it is vast in scale.
Doomsday prediction or a rosy painting should all be ignored. China still has quite a lot of ground work to do. Every family is dreaming a better life. These will continuously pump the country’s economy no matter how difficult the situation appears to be. The financial crisis and property bubble are only setbacks, not “turning points.”
Beneath China’s rapid growth lies concerns about its quality. We have reasons to be worried, but if we blindly accept comments from Western economists, we will lose sight.
China is poised to face tough challenges from different economic entities and waves of hungry speculators, yet its available options do not make it invincible.
It is difficult to tell the real logic of those who are short on China. Are they really pessimistic, or are they simply there to speculate from market turbulence.
Developing an economy is like playing chess. We may lose a few pieces, but these will also create opportunity for counters. However, the outcome ultimately lies on our shoulders.
The world is far from settled, especially in the economic realm. To measure China’s economic outcome, the criteria should be the quality of life enjoyed by its people, the abundance of its culture and material, and the growth of its sustainability.
Chinese people need to be more confident about their country’s future, because their country has a strong foundation to sustain its growth. Although issues do exist, and some of them are even threatening, our growth will provide a solution.
In fact few Chinese people believe that China’s economy is heading towards a collapse. Optimism is the overwhelming mindset. Ordinary people may know nothing about economic theory, but they may have better instincts.
