Uncertainty looms amid slow recovery

By Chen Jia and Wei Tian in Sanya, Hainan (China Daily) Updated: 2012-12-17 03:09

Advanced technological innovations and potential reforms to the social welfare system may also help indebted countries rebound, Wang said.

China plans to make its chief source of economic growth domestic consumption rather than exports. The resulting increase in the country's purchasing power will help boost the EU market, he added.

"Because of stronger cooperation between China and the EU, the Chinese sovereign wealth fund and companies will invest more in European projects," Wang said.

Wei Jianguo, secretary-general at the China Center for International Economic Exchanges, who is also a guest economist for China Daily, said the country should try to overcome these difficulties by strengthening its cooperation with the United States.

He suggested the world's two largest economies accelerate their talks over a free trade agreement.

Domestic companies will keep their eyes on bigger opportunities in the overseas mergers and acquisitions market in years to come.

Chen Feng, chairman of HNA Group, the parent company of Hainan Airlines, said the company is ready to see "more actions" in Europe.

HNA Group has conducted two large transactions in the aviation industry this year, one of which had it buy 48 percent of the French airline Aigel Azur.

In the next five to 10 years, the company plans to add to its holdings of overseas assets and increase its revenue, making the value of both equal to 30 to 40 percent of its total portfolio, up from the current 10 percent, Chen said.

Contact the writers at chenjia1@chinadaily.com.cn and weitian@chinadaily.com.cn

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