China’s economy grew by 6.9 percent in 2015 — the slowest rate in 25 years.
Some analysts say the nation could be heading for a hard landing, involving a financial crisis and more severe economic recession.
However, Bernard Yeung, Professor of the National University of Singapore Business School, says a growth rate of around 5 percent to 6 percent will be healthy for China’s economy.
SOUNDBITE (ENGLISH): BERNARD YEUNG, Professor of NUS Business School
“The fist point is that, given China’s GDP, 5 percent now is better than 10 percent five years ago. Number two, why do we keep on pumping growth? Using investment to pump up short-term growth is like growth by steroid. So pumping the growth by forcing investment, you’ll have short-term growth, but you have long-term problem, and is very wasteful. I don’t think we need that. China is now talking about rebalancing, restructuring, let it be. There’s shift towards consumption, that’s good, and if in the past, my muscle bump up because of steroid, now I don’t. I think it’ s healthy, you’ll have a healthier body in the future.”