China will be able to “cope” if Greece leaves the euro region and no large-scale stimulus is needed for the economy, a researcher for the nation’s top economic planning body said.
“Assuming a Greek exit would lead to a financial and economic crisis as damaging as the collapse of Lehman Brothers, China would be able to cope,” the official Xinhua News Agency reported yesterday, citing Zhang Yansheng, secretary-general of the Academic Committee of the National Development and Reform Commission.
Europe is China’s biggest export market, making up about 18 percent of the nation’s overseas shipments, according to Shenyin & Wanguo Securities Co.
Zhang, who provides policy advice to the NDRC, said in an interview with Xinhua that China’s huge domestic market and a relatively closed financial system will shield its economy from external shocks.
Chinese exporters relying on sales to Europe may suffer for about five months if Greece exits the euro, similar to what happened during the global financial crisis that started in 2008, he said. Zhang said there is a “very low” possibility Greece will leave the single currency bloc.
— With assistance by Xin Zhou