Economy

Europe debt crisis not to impact badly on China: expert

(Xinhua)
Updated: 2010-06-02 15:09

BEIJING: Europe's debt crisis will not cause another global financial crisis and neither dampen demand for Chinese exports in the long run, Wednesday's People's Daily cited an adviser to the Chinese central bank as saying.

Li Daokui, a Tsinghua University professor and a member of the central bank's monetary policy committee, said the Greek debt crisis was unlikely to spread to the whole world as the European Union and the International Monetary Fund had agreed to introduce a 750-billion-euro ($1,000 billion) rescue package to contain the crisis.

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He said the crisis will not slow the pace of the global economic recovery because affected countries such as Greek, Spain and Portugal are relatively "small players" in the developed world, and also the emerging economies will be the engine of global economic growth.

Li also called for more efforts to increase people's income in China to transform the economy into domestic demand-driven one.

He expected China's consumer price index (CPI), a main gauge of inflation, would rise 3.7 percent year-on-year for 2010 with rising labor costs, raw material prices and bad weather affecting agriculture production.