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Business / Economy

China faces economic challenges with confidence, resolution

(Xinhua) Updated: 2016-02-17 09:52

BEIJING - Last week, when Chinese people were celebrating the Chinese Lunar New Year of the Monkey, the global financial market was rocked by turmoil, bringing challenges and uncertainties to the Chinese economy.

However, the Chinese government is ready to deal with the difficult situation: It is confident that the world's second-largest economy still harbors great potential and has enough leeway to deal with economic predicament.

China's confidence and courage are rooted in sound economic fundamentals, massive economic volume and the government's management and mobilization capability.

First of all, China's economic fundamentals remain sound.

The surveyed unemployment rate for January 2016 stands at 4.99 percent, which is the biggest shining point, as a healthy employment rate guarantees sound economic fundamentals, Chinese Premier Li Keqiang said at Sunday's executive meeting of the State Council.

The current stable employment situation, increasing personal income growth that surpasses the GDP growth, and gradually decreased energy consumption per unit of GDP have all demonstrated the stability and health of the economic fundamentals.

Secondly, the Asian giant, which possesses the world's largest foreign exchange reserves and a high savings rate, enjoys much leeway in financial market and monetary policy.

According to the central bank, China held $3.23 trillion of foreign exchange reserves at the end of January, which will not allow speculators to dominate market sentiment.

Last year, despite a sluggish world economy and prominent structural problems facing the domestic economy, China's GDP realized medium-high growth on the basis of $10 trillion.

Without a doubt, these numbers can convince any critics who try to belittle China.

Moreover, China has ample tools at hand, including a relatively complete regulatory regime, a reformed?renminbi exchange rate and an enhanced monitor system for short-term speculative capital movements and cross-border financial derivative trading.

Thirdly, the Chinese government is very strong in mobilization and action, which has been admired by many other countries.

Many past crises have proved that the Chinese government is able to respond to tough situations effectively, which was vividly demonstrated in the 1997 financial crisis, when China, as opposed to many other Asian countries, maintained its own integrity.

As the Chinese premier put it, China's economic development has been constantly growing despite being faced with challenges, and the more difficult the situation, the more tenacious the Chinese economy.

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