China crisis

China a threat to global economy: France

China a threat to global economy: France
An investor looks at screens showing share prices at a securities firm in Qingdao, in eastern China's Shandong province . Photo: AFP
China's faltering growth poses a threat to a recovery in the global economy, France's economy minister Emmanuel Macron said on Tuesday, calling for urgent action to bolster the eurozone.
“The world economy is recovering but not as much as we wish. It's a very long process. On the one hand, we have opportunities… but on the other hand, there are many risks, particularly China today,” he told a conference of German ambassadors in Berlin.
“In its in our interest that China succeeds” its transition from an export-heavy economy to a new model of growth, he said.
Macron however pointed out that other emerging giants like Russia, Turkey and Brazil were experiencing far greater economic difficulties at the moment.
“All this makes it all the more important to have a eurozone that is strong and stable,” Macron said.
Speaking in Paris on Tuesday, France's President Francois Hollande said that he “trusts” China can overcome the financial crisis.
A day earlier, he had assessed that the world economy was “strong enough” to withstand any shock from China's slowing growth.
Fears over a downturn in the world's second biggest economy set off panic selling around the globe on Monday.
The rout continued on Tuesday in some Asian bourses including Shanghai and Tokyo, but European markets rebounded as investors returned for bargain hunting.
Slowing growth in Asia's largest economy has long kept investors on edge but China's shock devaluation of the yuan two weeks ago, following a string of weak economic data, has riled world markets.

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