China is developing into the world’s biggest economic entity while making great contributions to the growth of the world economy, said Neville Power, executive director of Fortescue Metals Group Ltd (FMG).

The development of the Chinese economy, together with a fast-paced urbanization, greatly improved people’s living standards, Power said. Apart from that, it also benefits Australia and other countries in the world.

Currently China is Australia’s biggest market for exports - it accounted for 36 percent of Australia’s overall amount last fiscal year, while in 2006 the proportion was only 14 percent, Power said.

He said FMG would be the best example to explain how Australian enterprises benefited from a growing Chinese economy. Andrew Forrest - chairman of FMG - predicted the huge demand of the Chinese market 10 years ago. During the global financial crisis, that great demand brought prosperity to Australia’s mining industry and helped Australian enterprises weather the crisis period.

Although China’s economic growth rate is reduced to 7 percent or lower, it still maintains a medium-to-high growth rate, Power said. Power expressed his disagreement with the idea that the Chinese economy may enter a recession. He believes that China still has great potential as its urbanization and industrialization goals are far from complete.

Power said that he and FMG are confident about the prospects of the Chinese economy. They are expecting to share more success with China.