China will be able to “cope” if
Greece leaves the euro region and no large-scale stimulus is
needed for the economy, a researcher for the nation’s top
economic planning body said.
“Assuming a Greek exit would lead to a financial and
economic crisis as damaging as the collapse of Lehman Brothers,
China would be able to cope,” the official Xinhua News Agency
reported yesterday, citing Zhang Yansheng, secretary-general of
the Academic Committee of the National Development and Reform
Commission.
Europe is China’s biggest export market, making up about 18
percent of the nation’s overseas shipments, according to Shenyin
Wanguo Securities Co.
Zhang, who provides policy advice to the NDRC, said in an
interview with Xinhua that China’s huge domestic market and a
relatively closed financial system will shield its economy from
external shocks.
Chinese exporters relying on sales to Europe may suffer for
about five months if Greece exits the euro, similar to what
happened during the global financial crisis that started in
2008, he said. Zhang said there is a “very low” possibility
Greece will leave the single currency bloc.
To contact Bloomberg News staff for this story:
Bloomberg News in Beijing at
xzhou68@bloomberg.net
To contact the editor responsible for this story:
Paul Panckhurst at
ppanckhurst@bloomberg.net
China Can ‘Cope’ If Greece Exits Euro
Nelson Ching/Bloomberg
Commuters enter and exit at a Shenyang Metro stop in Shenyang, Liaoning Province, China.
Commuters enter and exit at a Shenyang Metro stop in Shenyang, Liaoning Province, China. Photographer: Nelson Ching/Bloomberg
June 1 (Bloomberg) — Xiao Geng, research director at the Fung Global Institute, talks about the outlook for the Chinese economy, central bank monetary policy and the yuan.
Xiao speaks in Hong Kong with Susan Li on Bloomberg Television’s “First Up.” (Source: Bloomberg)
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