Lower Oil Prices Have Positives and Negatives for China: Expert
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Staff at a gas station counts money when refueling a vehicle. [File Photo: Chinanews.com]

Wang Jun, a researcher under the China Center for International Economic Exchanges, highlights the plus side of the decline for manufacturers and individual consumers.

"The current declining oil prices will firstly benefit consumers. The lower prices will in a way subsidize them and expand their consumption capacity. It will also reduce the costs of oil for companies, which also involves increasing profits. So for both individuals and companies, the fall will add to their output and will ultimately ease the downward pressure on the economy as a whole."

But he notes the trend may hurt China's efforts in terms of restructuring and environmental protection.

"If the prices keep falling, it will affect our economic restructuring and emission reduction. For example, it will lower prospects for prices of commodities which will cause the risks of deflation. It will also hinder the development of renewable energy because low oil prices will distract consumers and investors from renewable energy."

Low prices have put great downward pressures on energy firms, as China's major oil producers are trying to cut production and control costs in the past year.

Author： 　　　Source：CRI　　　 Editor：Yang Fan