Must remain ‘vigilant’ in face of risks: Chinese economic planner
Watch out for 'black swan' and 'gray rhino' events as economy slows, top official warns
As Beijing continues to voice commitment to a higher quality of economic growth, a top Chinese economic planner said on Monday that expansion of the country’s gross domestic product would slow down this year, urging continued vigilance in the face of potential risks.
China’s economy is undergoing a shift from a stage of rapid economic expansion to a one of high-quality growth, National Development and Reform Commission vice-secretary Fan Hengshan wrote in the Beijing Daily, adding that maintaining quality is the top priority.
While China can probably become a moderately prosperous society by 2020 with around 6.3% growth, Fan said, it is necessary to promote faster growth if possible. This year may see growth in the 6.5%-6.8% range, he predicted.
Synchronized global growth accross advanced and emerging economies will help support China’s economic growth as Beijing pursues its reform goals, Fan said.
“Of course, we also have to see [if] the international environment will remain tangled and complicated,” he cautioned. There are domestic problems regarding unbalanced development that haven’t been resolved, he added.
“On the path ahead, ‘black swan’ and ‘gray rhino’ events may transpire, bringing unfortunate consequences,” he continued, adding that “China must remain vigilant.”
A “gray rhino” is a large but neglected danger, while a “black swan” is a highly expected risk. The two terms, coined in recent years by Western authors, started to become popular in Communist Party of China mouthpieces last year, the South China Morning Post has reported.