Washington: Nicholas Lardy, a senior researcher at the Peterson Institute for International Economics, a Washington-based think tank, said in a recent interview with Xinhua news agency that the narrative of so-called over-production has provided an excuse for protectionism. Such statements are a threat to global trade.
Lardy said that according to this statement no country can produce more than its domestic consumption. If each country produced for its own country’s consumption, global trade would not exist. This would be a complete disaster for all economic communities.
Giving an example, he said that BYD is a global enterprise. It has the advantage of producing electric vehicles. Will it be able to serve only the domestic market and not export?
Lardy said he is concerned about anti-globalization and trade protectionism behind so-called China’s overproduction.
Discussing the Chinese economic situation, Lardy said that consumption contributed 73.7 percent to the Chinese economy in the first quarter. This has shown the important role of consumption in economic growth. I am confident that China’s GDP will meet the target of five percent growth this year.
