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“China spends a lot on infrastructure”

KOCHI: China has got all the factors in favour of high economic growth, high-quality infrastructure and private investment, said Wang Yijiang, faculty of Tsinghua University in China.

Speaking at the international conference on ‘India-China-U.S.A. Triangle’ here on Wednesday, Prof. Yijiang said the income level in China was higher than India, but substantially lower than the U.S.

The Indian and Chinese economies were fast growing. Prof. Yijiang said there was a pattern of growth for India, China and the U.S.

China was spending a lot of money in terms of infrastructure investment such as setting up power stations and highway constructions.

China and India both had large populations and low initial endowments. A much more homogenous population meant that China should have higher savings rate, more public and private inputs in production and higher growth rate compared to India.

Prof. Yijiang said both India and the U.S. had heterogeneous societies. A significantly larger population and lower initial endowment suggest higher tax rate, higher private saving and faster economic growth in India than in the U.S.

J. Panda, Associate Fellow of India Defence Studies and Analyses, New Delhi, said India, China and the U.S. had to follow a mechanism of accommodating power politics. The challenge before the U.S. was how to accommodate India and China at various global levels.

Dr. Panda said China had slowly accepted that India was not a rival for its own rise at the regional and global level.

India had realised that it need not look at China from the perspective of the old balance of power. The relation had got its autonomous status, he said.

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