Former Fed chief economist positive on Chinese economy
美联储官员对中国经济表示乐观

The Chinese economy continues to show signs of a gradual slowdown and some experts are wondering if China might be headed for a hard economic landing. The former chief economist for the U.S. Federal Reserve, David Stockton, tells CCTV that he thinks the Chinese economy will do just fine.

The Fed’s former chief economist David Stockton believes that China’s economic fundamentals are intact. Stockton says China runs certain risks such as an overheated real estate market but he holds a generally positive view of the country’s economy.

"I think the Chinese economy has indeed slowed over the course of the last year, and probably will slow a little bit further over the course of the next year or so. But I’m not anticipating a hard landing for the Chinese economy. I’m expecting a slowdown and the slowdown probably would be consistent with what the Chinese government has been aiming for," he said.

Stockton also points out that a series of recent reforms will help raising the quality and sustainability of China’s economic development.

"I think the potential for those reforms to affect a better balance of economic growth in China, one that has more dependence on consumer, and less dependent on investment, is likely to pay some dividends. I think they will be successful," he said.

"I think it will be a slow process. I don’t expect those reforms to produce an immediate or significant rebalancing in the economy. But I think they are helpful steps that are probably leading in the right direction."

Since the U.S. fed started tapering its bond buying program, some developing economies have suffered a flight of capital that has led to liquidity strains, stock market plunges, depreciated currencies and other ills.

Stockton believes, though, that China has shown greater resistance to the impact of the QE tapering, and the country’s central bank has reserved enough ammunition to guard against additional risks.