China’s growth is slowing, but the fundamentals driving that growth appear to be more solid. This was the summary from Chinese president Xi Jinping on Sunday in a speech to Asian business leaders gathered together for the Asia-Pacific Economic Cooperation summit on Monday and Tuesday. This meeting comes ahead of the APEC summit

President Xi expects china’s off shore investments to exceed $1.25 trillion over the next ten years. Imports will balloon to more than $10 trillion. Economic forecasters estimate more than half a billion Chinese will tour abroad in the next five years.

“For the Asia-Pacific and the world at large, China’s development will generate huge opportunities and benefits and hold lasting and infinite promise,” President Xi said.

The APEC summit will be discussing a free trade initiative (the Free-Trade Area of the Asia Pacific) as part of Beijing’s attempts to loosen the American strangleold on global trade and financial regulation.

The summit will also provide an opportunity for more informal talks between leaders. The most keenly anticipated one being between the leaders of China and Japan who have endured two years of tension stemming from a territorial dispute over an island.

Chinese President Xi Jinping. Image: www.news.com.au

Chinese President Xi Jinping. Image: www.news.com.au

President Xi told the assembled businessmen that the domestic economy grew by 7.3 per cent in the third quarter alone! Sadly this is the lowest growth rate in five years!

China has been under pressure to throttle its growth from the International Monetary Fund fear the damage an overheating economy could do to the country’s long term sustainability.

Despite predictions China’s economy will slow further President Xi said the fundamentals were good – strong job growth, low inflation, rising incomes and a move away from a dependence on investment to technology and manufacturing industries.

Even better, china appears to be shifting to a consumption driven economy giving relief to export markets, the need for foreign investment and government inputs.

The diversification of forces providing real growth in China makes the economy more stable and predictable.

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