General Electric CEO Jeff Immelt believes investor fears about China’s economic growth have been blown way out of proportion.
"It used to be easy for everyone in China because it was a macro story. Everything in China grew; now it's a micro story," Immelt told CNBC.
"If you're in the aviation business like we are, things are booming. If you're in the electrification business, things are booming. If you're in the mining business, it's quite tough," Immelt said.
He thinks underlying economic growth in China is between 5 and 7 percent. "It's probably slower than it was in the past, but it's not terrible by any means."
Sliding Chinese stock prices and currency have rattled global markets and prompted a flurry of policies and intervention by authorities to steady the world's second-biggest economy, Reuters
The risk of deflation in China is growing, data suggested on Wednesday, as policymakers tried to reassure markets that the economy can stay on track and state banks were suspected of intervening in offshore markets to bolster the yuan.
Some foreign central banks are increasingly worried about the impact falling Chinese prices and a weaker yuan could have on their economies, following a surprise devaluation in the currency last month.
Since then investors have been betting the yuan, or renminbi, could fall further, reflected in a wide spread between the offshore and more-tightly controlled onshore rates.
Economist Nouriel Roubini of New York University, commonly known as “Dr. Doom,” surprisingly says that the global investor reaction to China’s stock-market collapse was "excessive, unreasonable and irrational."
He dismissed market panic over China as "manic depressive" behavior by ill-informed investors, the U.K. Telegraph reported.
On “Black Monday,” the Shanghai Composite index lost 8.7% in one day at the end of August, prompting panic-selling across the globe as investors feared China's growth slowdown could be worse than expected.
"China is not in free fall," he said.
Turning to the United States, Immelt thinks that while the U.S. economy is improving, "you don't see anything that's inflationary."
He also thinks the Federal Reserve’s Federal Open Market Committee (FOMC) shouldn’t resist a rate hike.
"I actually think that interest rates starting to go up is a good thing for us, ultimately, not a bad thing," he said.
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