China has US$17.41 trillion of financial resources to offset external risks, Beijing think tank says
- Chinese Academy of Social Sciences research supports solutions to the risks identified by President Xi Jinping at last week’s Central Economic Work Conference
- Date refers to China’s national balance sheet at the end of 2016, includes stakes in state-owned enterprises, national infrastructure projects and foreign reserves
China has sufficient financial resources to offset the external risks identified by President Xi Jinping, but contingency plans are needed to counter potential economic “shock waves” next year, a top government think tank said.
The Chinese government had net assets of 120 trillion yuan (US$17.41 trillion) – including its stakes in state-owned enterprises (SOEs), national infrastructure projects and foreign reserves – on its books at the end of 2016, according to the analysis of China’s latest national balance sheet released by the Chinese Academy of Social Sciences on Wednesday.
“The government has accumulated lots of assets during the economic catch-up” over the past 40 years, “which allows us to handle risk with confidence,” said research project member Zhang Xiaojing.
As the national balance sheet calculations involve such a significant amount of data, it is always released two years later, although the central government does not release its version of the information.
