China's economic situation after the Beijing 2008 Olympic Games has recently become a hot topic of discussion. According to Li Yining, China's noted economist and professor at Beijing University, the Chinese economy will remain robust after the Beijing Olympics, as the economies of other host nations did.
At the Sohu-sponsored "2008 New Perspectives" Summit Forum, Lin Yifu, director of Beijing University's China Economic Research Center, said that China's economy after the Games will not fall into a slump; but maintain a growth of nearly 10 percent.
Why so-called "post-Olympic economic bubbles" appear in some host countries is a question defying analysis. Prof. Li Yining made three conclusions. First, the Olympic Games, in nature, harbor a number of resources, which can be developed to create national wealth and social prosperity. However, when resources run dry, and if no succeeding industries provide economic support, the economy of host countries may go into a plight.
Second, the investment surge forged before the Games will likely turn downward from a lack of new hot investment areas. The investment rebound could lead to a lasting economic recession. Third, job opportunities during the Games will disappear immediately after the event; trigger an increase in unemployment; and pose an obstacle to economic progress.
Nevertheless, China will not be dogged by the troubles that afflicted other host countries. Prof. Li remarked that China is only halfway done with industrialization; and its thirst for investment will not subside when the Beijing Olympics closes.
On top of that, huge amounts of investment will be necessary to rejuvenate the old industrial base in northeast China and in the country's underdeveloped west. China's baby hi-tech industries are also a new hot area that will attract new investment: new energy resources, bio-technology, new materials and new generations of electronics will draw huge sums of money.
The hurdles to economic development, such as the slow growth in farmers' income, the resources shortages and environmental deterioration, can be overcome by breaking up monopolies, establishing more private business, and reforming science and technology development. He also advocated improving and up-grading recycling technology; as well as tightening supervision over the environment.
China's economy will generally run smoothly when the Games close, as its large scale economy can stand up to any side effects from the Games. Theoretically speaking, consumption and tourism boosted before and during the Olympics could decline gradually, but not sharply.
As the largest sporting event in the world, the Olympic Games are expected to bring a wealth of business opportunities to the host nation. However, China's economy will not fall into a slump once this driving force expires. Additionally, strong investment after the Beijing Olympics will keep the Chinese economy growing rapidly.
By People's Daily Onine
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