Defining the future
Ahead of Cementtech 2011, Xiangzhong Kong, Secretary General of the China Cement Association (CCA), talks to ICR about the prospects for the domestic cement market and outlines the key policies which will define the Chinese cement industry over the coming five years and beyond.
ICR: How will the Chinese economy perform in 2011 compared with 2010?
CCA: China’s economy will continue its stable development trend in 2011. The government is very concerned about livelihood issues and has paid greater attention to improving the environment and the quality of economic development, as well as international cooperation. The investment-led economic growth mode has not been changed. Although inflation pressure as well as local currency appreciation is expected to enhance and agricultural development has been impacted by extremely unusual weather, China’s economic progress continued to maintain a sustained and steady development trend.
ICR: Some economists are concerned that the pace of growth in China is too fast and may be unsustainable – do you share this view?
CCA: It is important to look not only at the economic growth indicator, but also the differences in national circumstances when judging whether a country’s economic growth is too fast. China’s economic development is based on a low per capita income. Moreover, China’s infrastructure is weak and its people work predominantly in agriculture. The challenge is to try to satisfy peoples’ basic needs and alleviate poverty, and also to take into account the coordinated development of urban and rural areas. To develop from an agricultural to an industrial nation, economic growth must appear quickly, even during a period of global financial crisis. China can still maintain the current pace of development and the speed is sustainable.