Think tanks: Economy shows signs of rebound, chance to plunge still exists

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In Beijing scholars and experts attending the Global Think Tank Summit have been debating the prospects of the global economy. Many believe that though the global economy has shown signs of a rebound, there is still a chance it might plunge again.

Compared with a few months ago, the mood of some of the world's most influential economists seems a bit lighter. This is because recent positive economic data is making them believe there might be an end to the downturn.

Professor of Peking University Li Yining delivers a speech in Beijing,  capital of China, July 3, 2009. (Xinhua/Xing Guangli)

One example is China. Many think the Chinese government's stimulus measures have had initial success, and that the economy is heading towards a recovery.

Professor Li Yining, Peking University said "It's possible that China's second quarter GDP will be close to 8 percent. It shows that the economy is indeed beginning to recover. But the basis for such a recovery is not very solid. The most important task at present is to make sure the economy does not slide again."

Li Yining says overcapacity and excessive growth of bank loans are the two major risks facing China's economy.