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China's growth contributes to global economy

Xinhua: 2-9-2005

LONDON -- The world benefits from the growth of China, and receives no threat from it, some experts in London commented on Thursday.

China's exports to the world have contributed to global economic growth and stability, Hussain Athar, deputy director of the Development Studies Institute at the London School of Economics and Politics (LSE), said in an exclusive interview with Xinhua.

With its size as a producer and consumer and considering its high speed of growth, "China is understandably seen as a huge elephant entering the room of the world economy, you've got to readjust to make accommodation for it," Athar said.

But the readjustment requires effort on all sides -- from China as well as other parts of the world, he added.

Athar dismissed the "threat" rhetoric, saying that if any one says China is a threat to the world, the problem lies with them, not China.

He pointed to the fact that China successfully feeds over 20 percent of the world population, and also provides so many quality products to other parts of the world, saying that China's development contributes to world peace and stability.

China is also an accountable country. Many years ago, former Chinese leader Deng Xiaoping promised that his country would concentrate on its domestic economic development. Over the 20-plus years since China opened up to the outside world, the growth of its economy bears witness to the fact that China really meant it, according to the LSE expert.

Athar is critical of those imposing bans on China's textiles, as is currently being done by the United States and the European Union. These actions run against the spirit of liberty and free trade, the expert said.

While Chinese clothes are being banned and stockpiled in ships off the coast, consumers in Britain and other EU countries are complaining that as a consequence, they will have to pay much more for their autumn and winter garments, he said.

Displeasure over this issue was shown in the Daily Telegraph newspaper, one of the most influential in Britain, which said Wednesday that the behaviour of the EU in its textile dispute with Beijing has been both "short-sighted and muddy."

The fact that Peter Mandelson, the EU Trade Commissioner, failed to dissuade the "protectionist lobby" in France, Italy, Spain and Eastern Europe from seeking a deal on Chinese clothing, will simply push European retailers to switch to other suppliers such as India or Turkey, said the newspaper.

The article argued that it would be better to allow the Chinese their competitive advantage at the lower end of the manufacturing spectrum, which frees Britain and other European countries to concentrate on service, niche products and technologies that will be the engine of their own economies in the future.