Source: CCTV.com

11-14-2008 11:31

Special Report:   Global Financial Crisis

Early this week saw the formal launch of a fiscal stimulus plan to help China keep growth rates up amid chaos and uncertainty in global markets. As more details emerge over the days, experts say the economic package could be just what China needs to stay on top of financial challenges.

Experts say the measures focusing on ten points and costing 4 trillion yuan came at the right time. They think the package will not only boost China's economy, but also prove a good model for other economies.

Hu Angang, Director of Center for China Studies of Tsinghua University 
Hu Angang, Director of Center for China Studies of Tsinghua
University 

Hu Angang, Director of Center for China Studies of Tsinghua University said "The financial crisis has had a relatively small impact on China. But China did the most important thing, and gave a clear signal at the right time."

Compared with macro-control policies issued 10 years ago amid the Asian financial crisis, the newly issued stimulus measures pay more attention to benefits for the public.

Hu Angang said "China made an important decision in the midst of the global financial crisis. I think the measures highlighted the basic need to boost domestic demand, that is to enrich the people, especially to benefit low-income residents."

The stimulus plan also indicates that China will shift its economic focus from investment and export to domestic consumption. Many foreign economists are welcoming the change in strategy, believing that China's stable economic growth is the biggest contribution to the world.

Experts point out it is important for China to shift from an export-oriented economy to a consumption-oriented one, saying the financial crisis has to some extent helped China to realize its economic adjustments.

While other experts belive that China's stimulus plan could have even more effect than the 700 billion US dollar bail out plan backed by the US government.

Experts also say the stimulus plan is a big support to countries that are struggling amid the crisis.

 

Editor:Xiong Qu