Optimistic about China's economy in 2010

Ningbo, China, January 27 — Why am I optimistic about China's economy in 2010?

In contrast to Western economies in the current depression，the 2010 Chinese lunar new year will drive consumption and promote a new economic upsurge in China. As far as I understand, there might be some forces supporting China's economic growth.

First, the Chinese government has adopted various measures to stimulate economic growth. In 2009, China Data Watch expected China's fourth quarter GDP growth to be 10.9%. To determine the strength of China's economy there needs to be a strong base at home.

The second reason is China's ample savings. As of the end of 2009, the total savings of Chinese urban and rural residents should have exceeded 20 trillion yuan ($2.92 trillion), as long as there is no significant inflation, which is of considerable value to the purchasing power of the nation.

Third, China is trying to stimulate rural economic activity with a policy of sending surplus household electrical appliances to the countryside, to tap into the relatively untouched market there. The development of the automobile industry and supporting industries, as well as the nation's basic industries, are indispensable for China's economy.

On the other hand, challenges in keeping China's real estate bubble from bursting and dealing with an idle rural labor force will also play a vital role in the economy.

In conclusion, although the weather of the northern hemisphere has been influencing the economy somewhat, with the advent of the 2010 World Expo and Asian Games, the Chinese economy in 2010 might advance to a new level.