06 March 2012 11:48 [Source: ICIS news]
By Elaine Burridge and Andy Brice
After years of unparalleled growth,
According to Keller, the Chinese government is intelligently mastering the economy. There is still enough funding available to provide a reasonable subsidy policy for social infrastructure projects and fiscal revenues are very solid, he said.
“The Chinese economy has been quite strong over the last few years and what we expect is a soft landing, which means that annual growth rates will come down to approx 8%,” said Keller. “But we see that the Chinese government has actions as well as financial resources in place to manage a soft landing in a reasonable and structured way.”
Currently, GDP in
Keller pointed out that some 35% of private consumption makes up
The major change we will see in
As a result, the health and education sectors will thrive in the coming years and become core industries.
From an investment perspective, growth will be more selective in the future, said Keller, with more attention paid to small- and medium-sized enterprises (SMEs) and less on the larger projects.
“I think there are a number of challenges the Chinese chemical industry has to face. One is that the industry structure needs to change. We are currently seeing a large number of small, entrepreneurial companies and we see a limited number of huge strong conglomerates. What we are missing in
For all its growth,
“Definitely for the next 10 years, exports to Europe and the
“There is no way
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