Deloitte China Chief Economist Xu Sitao Talks on “The Changing Chinese Economy and its Global Impact”
Recently, the sharing session “China in Asia's context – conversations with Xu Sitao, Chief Economist of Deloitte China” was successfully convened by Deloitte Malaysia Chinese Services Group in Kuala Lumpur, during which Xu Sitao, the Chief Economist of Deloitte China spoke on the underlying trends of the Chinese economy and the new open-door policy of “Belt and Road Initiative”, followed by the panel discussion with over 80 guests, including Prof. Fan Zhiquan from Xiamen University Malaysia Campus, undergraduates from Peking University and Tsinghua University, as well as business representatives of Chinese companies.
In his speech titled “the changing Chinese economy and its global impact”, Prof. Xu has argued that despite an economic slowdown, China still has under-rated resilience thanks to the secular trend of consumption upgrade. Indeed, booming consumption and potential private investment will underpin China’s economic growth as China stays the course of reform and open-door policies.
In the short to medium terms, the most pressing problem facing China’s economic transformation lies in
Prof. Xu also related to the lessons which China could have drawn from certain seemingly unorthodox measures which were taken by Malaysia during the Asian Financial Crisis. Malaysia has come out of the crisis relatively unscathed. Drastic measures on imposing capital controls might be necessary but given the fact that China is also a rather open economy, it would be prudent for policymakers to phase out capital controls after sentiment improves. Sometimes, it is less practical for policymakers to implement water-tight capital controls in open economies because
China has been Malaysia's largest trading partner for years, underpinned by the strong economic ties and excellent bilateral relations. In light of potential protectionism which is looming in developed countries, Malaysia, thanks to its geographic advantages, rich natural resources and cultural heritages of local Chinese communities, has always been one of the most attractive