Foreign expert: China should keep bank credit at reasonable levels

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CCTV has talked to Morgan Stanley Asia Chairman Stephen Roach, who says China needs to keep bank credit at reasonable levels as its economy recovers.

As a renowned Wall Street investment banker, Stephen Roach has been observing Asia's economy closely in recent years. He has visited China many times and now, at the Summer Davos, he says the country has taken the world lead in recovering from the financial crisis.

Roach says Asia's economy has outperformed the rest of the world during this crisis. But Asian countries need to seize the opportunity to transform their industry structures if they truly wish to become world economic engines.

Roach says China's counter-measures have successfully helped reverse the impact of the financial crisis. But in the long term, China has to quickly shift focus from investment and exports to social security and welfare so that its people will no longer refrain from spending.