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Economy

China to face tough economic conditions for up to 10 yrs: minister

ANKARA (Kyodo) -- Chinese Finance Minister Lou Jiwei told his Group of 20 counterparts that the country's economy is likely to face tough conditions for up to 10 years, sources familiar with the G-20 meeting said Sunday.

     Following the two-day gathering through Saturday, the Chinese government said Lou told the finance chiefs that the next five years would be painful for the Chinese economy, and would include a difficult process of structural adjustment.

     But Beijing did not touch on the finance minister's comment that the tough times could last a decade.

     His remark at a G-20 session on Friday indicates the world's second-largest economy is preparing for a prolonged slowdown, with global financial markets facing instability as a result.

     At previous G-20 meetings, China had often presented an optimistic outlook, but apparently decided to offer a more realistic view amid international criticism of Beijing's economic policy.

     At the G-20 meeting ended Saturday, Japan and some other countries urged China to carry out structural reforms after its move to devalue the yuan last month led to plunges in global stocks.

     On the first day of the two-day gathering, Lou and Zhou Xiaochuan, governor of the People's Bank of China, explained the current conditions and outlook of the Chinese economy, according to the sources.

     In China's explanation of stock plunges, Zhou said a bubble had seemingly burst, the sources said.

     Under the concept of "a new normal," China said it had begun pursuing stable growth led by domestic demand rather than boosting investment and exports.

     Amid the slowing growth, the emerging economy is expected to present such structural reforms in its 13th five-year plan from 2016.

     The G-20 groups Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United States and the European Union.

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