While most global media is focused on doom-laden phrases such as “financial meltdown” and “staring into the abyss,” here’s an alternative view. Chinese state media today noted that the global credit crisis decimating the world's finances “may be a blessing in disguise for China.” The rationale is that the current global meltdown may “modify China’s economic structure after three decades of breakneck growth.”
China says its banks are “shielded from the worst effects of the crisis by its capital account control, plenty of liquidity and limited exposure to sophisticated derivatives.” However, it still faces the effects of recession on its main export markets, the United States and Europe.
"With such a high reliance on international trade, it's impossible for China to avoid the impact of the global turbulence, so economic slowdown is inevitable," says Tang Min, Deputy Secretary-General of the China Development Research Foundation. "However, the crisis is a timely warning that China's growth is unsustainable in the traditional pattern, relying too much on external demand," says Tang. "It can force us to change for the better."
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