What is PIMCO’s outlook for economic growth in China?
Lian: We expect China’s economic growth rate to remain strong and robust over the next twelve months, for two reasons. First, China will hold the 17th Communist Party Congress, an important event where key officials are appointed to run the country for the next five years, later this year. Second, Beijing will host the next Summer Olympic Games in August 2008. True, the direct impact from the Olympics is narrowly focused on the capital city. Still, in the run-up to both of these major events, it appears likely that the policy bias would be to ensure brisk economic growth. We are encouraged by Chinese policymakers’ emphasis on the quality of economic growth. These efforts are beginning to yield results, as growth has turned more broadly based. Admittedly, more still needs to be done. Specifically, policies have been directed at broadening out the geographical boundaries of the country’s growth impetus. The focus will be to meet the infrastructure needs of the hinterland, such as railroa
