China will sustain V-shape recovery

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The chief economist of the National Bureau of Statistics says China will be able to sustain its current V-shape recovery, setting the stage for stronger growth next year.

Yao Jingyuan says he is sure China's economy is over the worst. But he agrees there is no case for adjusting macroeconomic policies based on distant prospects of inflation. He also says the surplus of production capacity in China is the result of a long-term accumulation, and has nothing to do with the country's four-trillion yuan stimulus plan. But he says China needs to tackle deep-seated imbalances in its economy, which have become more pronounced due to the global financial crisis, to avoid repeated bouts of volatility.

Yao Jingyuan said, "We can say with certainty that China's economy is over the worst."

"There was no case for adjusting macroeconomic policies based on distant prospects of inflation."

"The production capacity surplus in China is the result of a long-term accumulation, while it has nothing to do with the country's four-trillion yuan stimulus plan."

"If China cannot tackle deep-seated imbalances in its economy, which have become more pronounced due to the global crisis, it would be vulnerable to repeated bouts of volatility."