Economy must adapt to changes

This is because all countries are trying their best to promote economic recovery. The US financial market has become more stable and its banking industry's profit prospects are improving. In September, the European Central Bank announced it will buy without a ceiling limit the short-term national debts of the countries ridden by heavy debts in the secondary market, lowering the possibility of the debt crisis spreading to other countries. And the emerging economies still have huge potential to make and implement new macro-control and regulatory polices.

China should adapt itself to the rapidly changing international environment and make use of its domestic strengths to offset the negative influences from the outside world.

Despite difficulties last year, China's overall international trade can still increase by more than 6 percent this year, much higher than the world average of 2.5 percent and the emerging economies' average of 3.5 percent. The prices of most staple commodities decreased in the international market last year, producing a favorable pricing situation for China's trade with the world.

In fact there are plenty of favorable conditions for China to boost its economic growth this year. China's trade with emerging economies continues to grow, and exports of its electromechanical and labor-intensive products remain stable.

The western and central parts of China are gradually becoming robust and active areas for international trade.

According to the United Nations Conference on Trade and Development, China surpassed the US as the country attracting the most foreign investment in the first half of 2012 and is likely to maintain its status as one of the most attractive countries for global investors in the future.

China's urbanization provides the rare opportunity to coordinate all the tasks needed for its growth. It should also take proactive opening-up strategies and develop new strengths, while increasing the competitiveness of its products and services in a rapidly changing trade and economic environment.

The author is the director of

the Institute of Economics of the Chinese Academy of Social Sciences. This article is first published in People's Daily.

(China Daily 01/07/2013 page8)