(New York News) The former head of the Chinese Ministry of the International Monetary Fund (IMF) Plaosad pointed out that the US economy seems to maintain a strong growth, and China is facing economic slowdown.The possibility that will surpass the United States is declining.
However, ESWAR PRASAD said in an interview with Asia that former US President Trump returned to the White House, he expects that global protectionism and geopolitical tensions will be upgraded, and American isolationism will revive.This will provide Beijing with opportunities to enhance influence.
Plazad is a professor at Cornell University.He said that the strong factors of the US economy include the flexible and powerful labor market, and the government's fiscal policy and financial system enables small and medium -sized enterprises to spend difficult periods such as epidemics.However, although the growth of the United States is not extremely dependent on exports, it may still be dragged down by the downturn in other countries. The continuous increase in public debt and the continuous increase in the proportion of interest payment accounting are also worrying.
Plastel believes that the Ministry of the People's Bank of China's recently lowered deposit reserve ratio (DePOSIT Reserve Ratio) measures reflect the Chinese government's concerns about the slowdown in growth and the plunge in the Chinese stock market.However, the Chinese government's restoration of the confidence of the private sector and the improving the economy still lacks a wide range of reform framework support.
Plastel mentioned various vulnerability facing China, including low birth rate and aging population, the decline in the real estate market, the deterioration of domestic and foreign investors, and the inadequate new growth model.He said that in the next few years, it may be difficult for China to maintain a growth rate of 4 % -5 %. It is expected that China's GDP (GDP) will surpass the United States one day.
