LONDON - The chairman of a leading British bank has dismissed speculations of economic crash in China, pointing out that the country has sufficient means to sustain growth.
Speaking at a lunch celebrating the Chinese Lunar New Year on Wednesday, Douglas Flint, group chairman of the HSBC Holdings plc, noted that sluggish exports and lacklustre global demand are weighing heavily on the Chinese economy, with its impact being felt throughout Asia and around the world.
"But I do not expect a hard landing. China retains the fiscal and monetary tools to cushion the impact in the short-term. Further easing measures and the relaxation of controls on spending will certainly help", he said.
In the long-term, reforming state-owned enterprises, further lowering trade and investment barriers, and spending more on the right kinds of infrastructure are just some of the steps that China can take to support sustainable growth, Flint said.
He said that a new Five-Year Plan to be published in March will lay out China's blueprint for the future and he fully expected it "to signal China's intention to stick to the course of reform".
Also speaking at the lunch, Chinese Ambassador to Britain Liu Xiaoming said the 13th five-year plan beginning this year will be based on the concepts of innovation, balanced growth, green economy, opening-up and inclusive development.
It will provide strong impetus to economic growth for both China and the rest of the world, the ambassador said.
