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Expert: China to drive Asian growth

By Jamie Thompson (China Daily)
Updated: 2006-08-23 08:52

"I believe its economy is moving more independently because of the increase in intra-Asian trade."

He said intra-regional trade has recently been expanding rapidly and now accounts for more than 40 per cent of Asia's total trade volume.

Walter is also the chief executive officer of the Deutsche Bank Research think-tank, which covers a range of issues ranging from economic forecasting to sector analysis.  

He told the seminar that it was now vital for the Chinese authorities to try to improve the social and economic environment in rural areas in order to secure the country's long-term growth. 

"It is very obvious that there is a big need to really focus on that in order to avoid social disruption and to avoid even more massive migration, by things like educational efforts and transportation provision," said Walter, formerly a professor at the renowned Kiel Institute for World Economics.

"This will be a very tough task not just for the central authorities in Beijing," said Walter, stressing that provincial administrations also have a major role to play.

He stressed China's rural sector and its development hold the key to the nation's medium and long-term growth.

"More moving of investment into the central and western areas is necessary to avoid the overheating that is happening in some parts of the eastern areas, as shown by real estate prices in places like Shanghai.

"The untapped potential of the rural sector is the source of growth for China in the medium and long-term.

"The very fact we still have so many people living on the farm in rural areas means there is a resource reserve that can be tapped."