By Cai U. Ordinario & Bianca Cuaresma
Chinese President Xi Jinping on Wednesday said Asia-Pacific countries can continue to count on China to propel the region’s growth, despite Beijing’s current struggle with so-called temporary pains of economic reforms.
Xi made the assurance in his speech before economic and industry leaders at the Asia-Pacific Economic Cooperation (Apec) CEO Summit in Manila on Wednesday.
“China is a member of the Asia-Pacific family. We began our development here and we owe our development to Asia Pacific. We will continue to anchor ourselves here and deliver benefits to the region,” Xi said.
He added that China will go for “broader, deeper and more sophisticated” cooperation at the regional level and is committed to “open regionalism.”
China urged Apec member-countries to fast-track the setup of the Beijing-led Free Trade Area of the Asi Pacific, considering the emergence of new regional free- trade agreements which have given rise to worries about the region’s fragmentation.
Xi said China has established the $40-billion Silk Road infrastructure fund and is now working with more than 50 countries to prepare for the launching of the Asian Infrastructure Investment Bank (AIIB).
The AIIB is a new type of investment and financing institution which can be tapped by Asian countries for their important projects. It is expected to be fully operational by the end of the year.
China is the world’s second-largest economy and is considered an important trading partner of many countries in Asia Pacific.
The slowdown in China’s economic growth has become a cause for concern and is being tagged as one of the major reasons behind the possible contraction in global growth this year.
Just last month, China reported that its economy dipped to 6.9 percent in January to September—the lowest growth rate posted by the economic powerhouse in six years.
“China is working vigorously to overcome difficulties and meet challenges by strengthening macro regulations and effectively advancing reforms,” Xi said. “In general, China’s positive economic fundamentals and long-term trajectory remain unchanged but also remain unchanged are the basic facts that China’s economy has strong resilience, great potential and ample room for maneuver,” he added.
Xi said Beijing is stepping up the implementation of reforms aimed at ensuring inclusive growth. He said Beijing will focus on innovation and remove “institutional obstacles.”
“We lifted 700 million Chinese people out of poverty. This is in itself a major contribution to human progress. In the next five years, all the remaining 70 million rural people living below Chinese poverty line will be lifted out of poverty,” he said. Despite the tension in West Philippine Sea, the Philippines welcomed the efforts of China to sustain growth.
“Of course, it is most reassuring that China is serious in its commitment to sustain the momentum of economic growth and keep China attractive to foreign investments,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor for Monetary Stability Sector Diwa C. Guinigundo told the BusinessMirror.
“It is crucial for economic and financial reforms to be sustained to cement China’s intent to internationalize the yuan. If these goals are realized, a strong China is good for both the Asia-Pacific region and the global economy,” Guinigundo added.
He said the Philippines stands to benefit from a firm driver of global growth through expanded trade and investment channel. Guinigundo, however, said the Philippines is not as tied to Chinese trade as other countries in Asia Pacific.
International Monetary Fund Resident Representative to the Philippines Shanaka Jayanath Peiris told the BusinessMirror earlier that the Philippines’s strong macroeconomic fundamentals and relatively low economic linkages to China serve as a “cushion.”