[영어뉴스] 최종수정일 / 2008년 11월 04일

   The grand world sports festival, the Olympics, opened in Beijing on August 8, 2008 at 8 p.m., the date and time filled
with the number 8, associated with luck and fortune by the
Chinese.  Like Korea and Australia after their Olympics
respectively in Seoul in 1988 and Sydney in 2000, China is
hoping to increase greatly its rate of economic growth. There are concerns, however, that such rapid economic growth
would not be possible after the Beiing Olympics.

  According to a researcher at the Samsung Economic
Institute, 'beginning in 2001, after China joined the WTO, its
economy grew 10% annually while prices rose 1%.  An optimistic view prevailed because of continued investment in
agriculture, development of the western region, and rising domestic consumption.  But some critics argue that the
economy will  overheat and decline as a result of rapid growth, urging the careful monitoring of economic indicators for signs of overheating.'    

  Moreover, Pyo Min Chan, the chief Samsung Economic Institute researcher, said, 'an analysis of three scenarios
from the perspective of Chinese economic policy indicates that a slowdown is inevitable as the economy overheats.  If the austerity measures taken to control the overheating economy and maintain prices are continued, the economic
growth rate will fall to 7.2% in 2009.'

  As there are several threats to the continuance of Chinese economic growth after the Olympics, vigilance is needed
against the development of possible economic crises.

  According to the analysis of Hana Financial Research Institute, there are four threats to the Chinese economy.

  First is the failure of economic and financial restructuring.  Second is prolonged inflation.  Third is the bursting of the
property bubble.  Fourth is the failure of the government's austerity measures.

  Further, 'a downward adjustment is inevitable with exports falling and investments shrinking.  So the rate of Chinese
economic growth is expected to decline to 9% by 2009 from 10.1% in 2008.'

  China's economy, whether it moves up or down, will greatly affect Korea's.  Korea must, therefore, be prepared for a
variety of situations by closely examining the Chinese economy for its possible effects.  
    
  The head of the Hyundai Economic Research Institute, Yu Byung-gyu advocated more active exchanges between
Korea and China: 'we should make plans for the long term, so we can adapt to China`s changes, and our business
and industry must contribute to and participate in China's project to advance its economy.  Korean-Chinese
exchanges in industries such as IT, communications, and financial services should be increased as well as those in
scientific technology and human resources.

August 19, 2008
By Junior reporter Jang Tae-yun