CHINA faces immense pressure to maintain economic growth despite recent signs of recovery due to uncertainties in exports while the benefits of urbanization may be overvalued, economists said yesterday in Shanghai.
Mr Shen Jianguang, managing director and chief Asia economist at Mizuho Securities Asia Ltd, said at the Shanghai International Private Equity Forum said that "We should avoid being too optimistic."
Mr Shen cited falling trade as a potential threat to China's economic growth next year.
Mr Shen said that China's major exports markets are going through a difficult period in which demand is weak although the country's exports grew 11.6% from a year earlier in October and 9.9 percent in September. He said that "The United States can hardly present a decent recovery next year because of its too aggressive easing policies in the past few years which make its economy numb to stimulus, and the European Union is no better."
Mr Li Xunlei deputy CEO and chief economist at Haitong Securities Co said that another threat comes from the excessive hopes of urbanization. He said that "China's urbanization may be unable to create so much consumption and investment as expected" because income levels may not increase accordingly."