Veteran corporate strategist upbeat about China economy

BEIJING - China's economy is well positioned to maintain good growth and a number of Chinese companies are becoming ready to be leaders instead of followers in high-tech sectors, a US veteran expert on China's industry and economy said.

Handel Jones, founder, chairman and CEO of US-based International Business Strategies Inc, made the remarks in an interview with Xinhua.

Moving away from the double-digit growth of the most recent decade, the world's second largest economy has been facing notable downward pressure and has entered a stage known as the new normal, characterized by slow, but higher quality growth.

The economy posted 7.4 percent growth in 2014, its weakest since 1990. The annual growth target was lowered to around 7 percent for 2015, arousing concern over the health and momentum of the economy.

"I'm confident that China, based on how things are going on, what the government is doing and what the companies are doing, is well positioned to have good growth in the next ten years," Jones told Xinhua.

As to the fear-mongers who foresee the collapse of China's economy, Jones said, "the Chinese economy has problems, but if you read the US press, you have the impression that the collapse of the economy is ready to be announced."

"I don't see collapse of the Chinese economy, although it has to be careful about a lukewarm global market, overcapacity or risks arising from expanding local debts," Jones, who is paying his 50th visit to China, said.

The author of the best-selling book Chinamerica, Jones bases his confidence on the "enormous people assets" and an efficient and visionary government.

"China has a broad base of high quality people assets. There is a strong desire to succeed, and they are very motivated and entrepreneurial," Jones said. It is, however, important that they do not become complacent after initial success. There is a national goal as well as personal goals.

Another guarantee for the success of the Chinese economy is the role of the government in making visionary and grand industrial plans, guiding the industries and building the stage for companies to perform, he said.