Chinese President Xi Jinping said the global economy has entered a period of “profound readjustment” and recovery remains elusive

China President Xi Says Global Economic Recovery Remains Elusive

Chinese President Xi Jinping said the global economy has entered a period of “profound readjustment” and recovery remains elusive.

The international financial industry is fraught with risks and protectionism is on the rise, Xi said in a speech at the Boao Forum for Asia in the southern Chinese province of Hainan today. Countries are still facing difficulties in adjusting their economic structure and the global-governance mechanism needs improvement, he said.Policy makers around the world face growing risks of stagnant or slowing growth. Last week alone, the Bank of Japan said it will start unprecedented stimulus to counter 15 years of deflation, data showed U.S. employers added the fewest workers in nine months and European Central Bank President Mario Draghi said the institution is prepared to cut interest rates if the economy deteriorates further.

“Achieving common development for all countries remains an uphill battle,” Xi said. “Rather than undercutting each other’s efforts, countries should complement each other and work for joint progress.”

Speaking at the same forum today, Christine Lagarde, managing director of the International Monetary Fund, said countries need to “reaccelerate” the process of cooperation that was evident at the beginning of the financial crisis.

“There was a very strong sense of urgency and a massive desire to cooperate,” Lagarde said. “But let’s be honest about it: That sense of urgency has clearly abated as the crisis has tempered and as recovery has been a bit more patchy.”

Full Confidence

The spillover effects of monetary and fiscal policies “have significantly accelerated and heightened,” she said, without naming any countries. “This means that all countries and regions need to act with an even greater sense of responsibility — responsibility not solely for the consequences of their policy for their own nation, for their own regions, but also for the rest of the world.”

Xi said he is “full of confidence in China’s future” and that the nation will maintain “robust growth momentum.” Domestic demand, particularly consumption-driven demand, will continue to grow and outbound investment will increase “substantially,” he said.

China’s economy expanded at an annual average 10.5 percent pace over the past decade and new Premier Li Keqiang said last month that the country needs to achieve growth of 7.5 percent a year to meet the country’s targets for 2020, which include doubling per capita income. Gross domestic product rose 7.8 percent last year, the least since 1999.

Everyone Benefits

“The more China grows, the more development opportunities it will create for the rest of Asia and the world,” Xi said today.

Since the beginning of the century, China’s trade with its neighbors has grown from $100 billion to more than $1.3 trillion, and China has become the biggest trading partner and export market and a major source of investment for many of these nations, Xi said.

Trade within Asia has increased to $3 trillion from $800 billion in the last 10 years, and trade with other regions has grown to $4.8 trillion from $1.5 trillion, he said, according to the official Xinhua News Agency.

“This shows that cooperation in Asia is open and it goes hand in hand with Asia’s cooperation with other regions, and everyone has benefited from such cooperation,” he said.

To contact Bloomberg News staff for this story: Nerys Avery in Beijing at

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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