So Far, So Good
China’s GDP grew 6.6 percent year on year in 2018, with the size of the economy exceeding 90 trillion yuan ($13.26 trillion), according to data released by the National Bureau of Statistics on January 21. The stable growth in 2018 continued the trend of the Chinese economy’s growth for years without the troubles U.S. President Donald Trump had claimed would pull it down.
Two figures stand out—the 90-trillionyuan mark crossed by China’s GDP and 30.51 trillion yuan ($4.5 trillion), the volume of total imports and exports in 2018, hitting a record high. These figures signify outstanding achievement, especially in the midst of the complex external environment in 2018, fraught with uncertainties, unilateralism and trade protectionism.
As one of the fastest-growing major economies, China’s 6.6-percent growth crossed the official target announced at the beginning of 2018, which was around 6.5 percent. In addition to keeping up its own growth, China has remained the largest contributor to global economic growth, with over 30 percent.
The Chinese economy reached the new height in 2018 thanks to the optimized economic structure and the development of new growth engines. The transformation and upgrading of the structure and pattern of economic growth have been undertaken for a decade now. China’s economic performance in 2018 shows that the country’s demand structure has been significantly adjusted and optimized. As a result of this, consumption’s position as a driver of the economy has risen. It contributed 76.2 percent of the growth, 43.8 percentage points higher than the contribution by investment, which used to be the largest contributor.
Also, there was remarkable improvement in upgrading the industrial structure. The service sector too played an important role in ensuring stability of the economy. In addition, new products, industries, formats and patterns were developed, while the strategic emerging industries also kept up a fairly rapid growth. All of this indicates that China’s economic growth has entered a new phase where its quality has improved and efficiency optimized.
In this phase, the economy will be more resistant to impacts. It is going to bring greater benefits to China’s economic partners. Detractors should realize that if the Chinese economy falters, it will affect them as well. So both China and the international community should dwell on the mutual benefits brought by cooperation against the background of globalization, and extend it further.