OECD: China is expected to become the largest producer of industrial products in the next few years

On February 2, according to the 'China Economic Survey Report' (2010) published here by the Organization for Economic Cooperation and Development (OECD), my country will surpass the United States to become the world's largest industrial product manufacturer in the next 5 to 7 years. In this regard, Chinese scholars believe that when talking about China's economy, we should not only look at the total amount, but also look at the basic national conditions such as China's huge population. Pierre Padoan, deputy secretary-general and chief economist of the Organization for Economic Cooperation and Development, said at a press conference that with the support of the huge government stimulus plan, China is taking the lead in the global economy out of recession. In the future, China is expected to replace the United States as the world's largest manufacturer of industrial products within 5 to 7 years. In this regard, Zhang Zhigang, chief economist of the China Center for International Economic Exchanges who commented on the 'Report' at the invitation of the OECD, said that to understand China correctly and comprehensively, not only the total volume of China’s economy but also the per capita level must be looked at. Look at China's national conditions: China is a developing country with a population of 1.3 billion. Previously, domestic and foreign media widely reported that my country's gross domestic product and total import and export volume in 2009 ranked among the best in the world. However, experts believe that, on a per capita basis, China is clearly behind in the rankings of other countries in the world, with only more than 100 places in the ranking. This 232-page survey report reviews my country’s achievements in the past five years, future economic development prospects and challenges in 8 chapters; it discusses my country’s monetary policy and financial system reforms, commodity market regulation and competition, Regional coordinated development, labor market reform, pension issues, and improvement of the medical and health system. According to the report, although the reforms of the Chinese government in recent years have increasingly focused on maintaining harmony. To improve people's livelihood, China still needs to increase social spending. While highly appraising China's economic and social achievements, the report also put forward a series of policy recommendations, including further promoting monetary and financial reforms, and increasing the flexibility of the RMB exchange rate in a timely manner. Padoan believes that enhancing the flexibility of the RMB exchange rate cannot be accomplished overnight. It should be a medium-term goal, and related supporting reforms in the financial sector are required. Zhang Zhigang believes that China's maintenance of the basic stability of the renminbi currency is not only conducive to the stability of the Chinese economy, but also conducive to the stability of the world economy. During the 1997 Asian financial crisis, China maintained a stable renminbi currency, which was well received by the world. After the outbreak of the world financial crisis, some Westerners were dissatisfied with China's stability in the value of the renminbi, and demanded that the renminbi be appreciated, which was obviously utilitarian. Source: Xinhuanet