Chinese economy does have its flaws, says Chinese daily

The Chinese economy does have its flaws, said a state-run Chinese daily which added that after decades of rapid growth, the economy is bound to slow.

An editorial "Hype against economic model unjustified" in the Global Times on Thursday said that the recent disappointing Chinese stock market performance is "unlikely to be perceived as the result of good governance of the Chinese economy. There have been excessive criticisms and complaints, which are understandable".

It said that "some media outlets were quick to draw the conclusion that the market fall 'symbolises a slow-motion denouement of China's economic and political model', which has gone too far".

"The stock market's sharp fall is like a fever, but foreign media describes it as a cancer. If so, the market plunge seven years ago would have ended the China model."

The editorial said that China has emerged as the world second-largest economy, up from third place, and generates a GDP worth trillions of dollars. "China's economic might can be felt in all corners of the globe, especially the Asia-Pacific".

It admitted that "The economy does have its flaws. The government has been trying to solve these problems, and at the same time society has learned to withstand them."

"If a stock market index falls, investors now have been prepared for it and the country's financial institutions have made contingency plans."

The editorial went on to say that the Western media has played up the notion that rapid economic growth has become the source of legitimacy of the ruling Party. "They reckon that an economic crisis will lead to national chaos."

"An economic boom will boost the popularity of any regime. If the Chinese economy crumbles and people are on the edge of starvation, no regime can sustain its rule. But will periodic economic slowdowns and difficulties in adjustment hurt the legality of China's political system? That's a delusion," it added.

The daily noted that after decades of rapid growth, "the economy is bound to slow".

"This was predicted several years ago. China is facing a severe economic situation. The model of China's development needs adjustment, and society has a consensus about this. But it is too much to hype against China's political system."

It added that many countries are facing economic difficulties and some Western powers have even lost their growth momentum.

"Some Westerners may wish for a collapsed China and hope they can eventually benefit from it, but they forget their countries may be the ones that crash.

"Chinese people should listen to those doomsayers. At least they can remind us that China's strategic environment is not that favourable. China should avoid its past mistakes and show a firm determination in reforms," it added.