China could maintain fast growth for 20 yrs

Historical experience predicts that the Chinese economy has the potential to maintain fast growth for 20 years, yet still financial risks pose great challenges to the world's second largest economy in 2013, said leading Chinese economists at a press conference of the first session of the 12th Chinese People's Political Consultative Conference (CPPCC) National Committee.

Technological innovation, industrial upgrading and late-mover advantage make it possible for China to maintain a growth rate of 8 percent in the next 20 years, said Lin Yifu, former World Bank governor and CPPCC member, who made the prediction based on the development of Western and East Asian countries in the past century.

While the Chinese economy will maintain steady growth in 2013, urbanization should better fend off financial risks and care not to repeat the past failure of excessive and inefficient investment, which carry the risks of causing bank collapses, company shutdowns and broken debt chains, said Li Yining, a CPPCC member.

Li Yining answers questions on March 7, 2013, at a press conference of the first session of the 12th Chinese People's Political Consultative Conference (CPPCC) National Committee. Photo by Zhu Xingxin/Asianewsphoto