New Zealand Prime Minister John Key on Monday expressed optimism about China's economic transition, saying the growth of the Chinese economy is still very considerable.
The Chinese leadership has many options to guide the world's second largest economy through its transition. said Key, who is on an official visit to China.
STILL GOING STRONG
"China's economy has been growing rapidly for 20 to 30 years, but on a much smaller base," Key said during a conversation with Chinese entrepreneurs in Beijing, noting that although growth rate has slowed, it is "on a much, much higher base, so the economic growth each year is still very considerable."
According to China's National Bureau of Statistics, the Chinese economy grew 6.7 percent year on year in the first quarter, narrowing from the previous quarter's 6.8 percent, but in line with market expectations and remained within the government's targeted range of between 6.5 and 7 percent for 2016.
"I think what you've seen in the Chinese economy," said Key, is "the transition and the make-up of the economy from much export-oriented to much more import, services-based economy."
He added that he believed the Chinese banking system, which is facing some stress, is still strong and robust.
According to the Chinese government, services sector has expanded to 56.9 percent of the Chinese economy.
Key is upbeat about China's transition from a "heavy industrialized, manufacturing base" to a "far more knowledge-based, services-based economy, where it's more based on internal consumption."
He believed that the Chinese leadership has at its disposal a wide range of options to allow the economy to transition through the change.
"You need just give it some time," said Key.
Key made the remarks during a luncheon hosted by China Entrepreneur Club with Chinese business leaders, including Alibaba founder Jack Ma, Lenovo founder Liu Chuanzhi, and some 70 others.
A VERY LONG-TERM PLAYER
Key, who has brought a 40-person business delegation with him with an eye to further tapping into the Chinese market, said New Zealand is interested in becoming a "very long-term player in China."
