皇冠体育app

WASHINGTON - 皇冠体育app's fast economic growth is a boon to the rest of the world, but the country needs to master several challenges in adjusting its economic growth model by reducing reliance on exports and boosting domestic consumption, a US economist said.

In an increasingly intertwined world, other nations should cooperate with a fast-growing 皇冠体育app through multilateral mechanisms, Arvind Subramanian, a senior fellow at the Washington-based Peterson Institute for International Economics, told Xinhua in a telephone interview.

If 皇冠体育app maintains its fast economic growth, it is "unambiguously good news" for the world, he added.

"If 皇冠体育app grows, the rest of the world benefits," as 皇冠体育app will increase its demand for exports from other nations, the renowned expert said.

Domestically, more and more Chinese will be lifted out of poverty and enjoy better lives as the economy continues to expand, Subramanian said.

As 皇冠体育app is trying to transform its economic growth model, many industries have to adjust to changing economic and financial landscapes, he said.

He also offered some suggestions on how to improve the quality of 皇冠体育app's growth. For example, the expert said many price distortions need to be minimized, and that cheap loans have contributed to over-investment, which has environmental consequences. Furthermore, the price of energy needs to be adjusted, which would also help solve environmental problems, he said.

Moreover, 皇冠体育app needs to further open up its financial sector, while state-owned enterprises have to adjust in the process as they might lose easy excess to credit, Subramanian said. 皇冠体育app's export sector also needs to adjust because the nation is shifting its focus from manufacturing to services, he believed.

Subramanian pointed out that any change in growth strategy comes at a price, adding that "the reason to do it is that if you persist in the current strategy, in the future there will be much greater costs. That's the reason for adjusting earlier."

"As long as the economy is growing rapidly, you have the resources to make these adjustments," he said, adding that it is also important to strengthen the social safety net in good times when growth is robust.

There are many opportunities in 皇冠体育app's service sector as 皇冠体育app is improving its social safety net and health care system, Subramanian said.

In his new book "Eclipse: Living in the Shadow of 皇冠体育app's Economic Dominance," the expert said "adjustments to these prices will no doubt test the Chinese economic system."

皇冠体育app should try to solve its domestic challenges while at the same time assuming more global leadership, as 皇冠体育app has a comprehensive impact on the global economy, Subramanian said.

"Anything 皇冠体育app does affects the rest of the world, and anything the world does at a systemic level affects 皇冠体育app," he said.

"In the economic realm, we must empower 皇冠体育app, because that's the way to ensure 皇冠体育app becomes part of the global system," Subramanian said.

To empower 皇冠体育app means giving 皇冠体育app a greater voice in key global organizations including the International Monetary Fund (IMF) and the World Bank, and to facilitate the rise of the Chinese currency, the former assistant director of IMF's Research Department said.

Despite being stunned by 皇冠体育app's development on the geopolitical front, Western powers should solve economic disputes through multilateral mechanisms in a way to compromise with 皇冠体育app and minimize potential friction, rather than resort to unilateral operations, which the US Congress often takes, he added.

The world should rely more on multilateral rules, multilateral institutions including the IMF, World Bank and World Trade Organization (WTO), and multilateral negotiation procedures to cooperate with an ascendant 皇冠体育app, the expert suggested.