China and the financial crisis

PA 139/09 China will emerge from the global recession stronger and more quickly than any other economy, a University of Nottingham economist has predicted. Professor Shujie Yao, Head of the University's School of Contemporary Chinese Studies, said China is set to grow rapidly and may already be the world's second largest-economy — leaving the UK and others to stagnate. At a seminar organised by leading Chinese and UK academics, Professor Yao demonstrated how the nation is taking advantage of the worldwide financial crisis to strengthen its position. He said: "There's no doubt China has been hit by the global recession. Exports fell for the sixth month in succession in April, the Shanghai Stock Exchange suffered worse drops than most other leading world stock markets — down 65 per cent — in 2008, and GDP growth has slowed from double figures in 2007 to a likely eight per cent this year. "But other countries have been much harder hit. The UK, for example, will see its economy contract this year by 4.5 per cent and may start to grow very slowly in 2010-2011.