Whatever the issues, China’s economy keeps expanding

Despite growing fears about its banking and financial stability, China continues its investment strategy with a view to preparing for its near future as the world’s largest economy around 2030 according to most optimistic forecasts.

A close look at both difficulties and assets of the Chinese economy makes one understand that the former have been considered a temporary issue while the latter have been deemed a long-term enterprise by State authorities. The Yuan’s inclusion in the IMF’s SDR basket has been welcomed as further evidence that China now counts as a prominent economic power well integrated into the global financial system.

Despite foreign trade that remains under heavy downward pressure due to increasing uncertainties, China has reaffirmed its status at the world’s second-largest source of outbound investment, only second to the United States, with a new record high of direct investment in the US at USD 8 billion in 2015.

On a more regional note, Chinese President Xi Jinping’s Silk Road Economic Belt and 21st-Century Maritime Silk Road initiative started in 2013 have brought impressive results with trade between China and the Belt and Road countries above USD 600 billion YTD that is 26% of China’s total foreign trade volume.