Chi­nese Growth Fu­el­ing Global Econ­omy

China Pictorial (English) - - Contents - Text by Chen Qiqing

Since the 18th Na­tional Con­gress of the Com­mu­nist Party of China (CPC) in 2012, the CPC Cen­tral Com­mit­tee with Gen­eral Sec­re­tary Xi Jin­ping at its core has fol­lowed the gen­eral guide­line of main­tain­ing steady progress based on a rea­soned judg­ment that China’s eco­nomic de­vel­op­ment has en­tered its “new nor­mal” phase. The com­mit­tee has put forth the con­cept of in­no­va­tive, co­or­di­nated, green, open and shared de­vel­op­ment and pro­moted sup­ply-side struc­tural re­form. Un­der such guide­lines, China’s econ­omy has con­stantly made achieve­ments, ben­e­fit­ing not only the Chi­nese peo­ple, but also the global econ­omy.

China’s Eco­nomic Growth Pro­motes World Econ­omy

China is now the most pow­er­ful en­gine of the world econ­omy. At cur­rent prices, in 2016, China’s GDP reached US$11.2 tril­lion, ac­count­ing for 14.9 per­cent of the global to­tal, sec­ond only to the United States. But China’s con­tri­bu­tion to the growth of the world econ­omy greatly ex­ceeded the largest econ­omy. Sta­tis­tics from the World Bank show that from 2013 to 2016, China con­trib­uted an av­er­age of 31.6 per­cent of global eco­nomic growth, higher than the U.S., the Eu­ro­zone and Ja­pan com­bined. And in 2016, the fig­ure reached as high as 34.7 per­cent, driv­ing the world econ­omy up 0.8 per­cent, so­lid­i­fy­ing China’s sta­tus as the lo­co­mo­tive of the global econ­omy.

China is mak­ing new con­tri­bu­tions to global tech­no­log­i­cal in­no­va­tion. With a new round of in­dus­trial rev­o­lu­tion com­ing, in­no­va­tion has be­come the big­gest driv­ing force for the world econ­omy. Through­out his­tory, China has re­mained a stand­out in in­no­va­tion, rep­re­sented by its Four Great In­ven­tions—pa­per­mak­ing, print­ing, gun­pow­der and the com­pass. In mod­ern times, the coun­try be­came dim in the field, but in re­cent years, China has re­vived and be­come one of the lead­ing coun­tries in in­no­va­tion in fields like quan­tum com­mu­ni­ca­tion, su­per com­put­ers and power trans­mis­sion. What’s more, China’s “four new great in­ven­tions”— high-speed rail­way, Ali­pay, on­line shop­ping, and bike shar­ing— are bring­ing great changes to peo­ple’s lives. The world is shift­ing from C2C (Copy to China) to 2CC (To Copy China).

China’s De­vel­op­ment Cre­ates Op­por­tu­ni­ties uni­ties for the World

Al­most four decades af­ter its im­ple­men­ta­tion of the re­form and open­ing-up pol­icy in the late 1970s, China has be­come the world’s sec­ond largest econ­omy, sec­ond largest trad­ing na­tion, largest argest ex­porter,

sec­ond largest im­porter and sec­ond largest over­seas in­vestor. China now cer­tainly has the ca­pa­bil­i­ties to cre­ate huge de­vel­op­ment op­por­tu­ni­ties for the world.

China pro­vides a vast mar­ket for the world. As more and more Chi­nese peo­ple be­come mid­dle-class, con­sump­tion will rise sig­nif­i­cantly. Al­ready the largest buyer of bulk com­modi­ties, China will of­fer a mas­sive po­ten­tial mar­ket for coun­tries rich in re­sources.

Global cap­i­tal can tap China’s rapid de­vel­op­ment to reap prof­its. Since its re­form and open­ing up, the coun­try has ab­sorbed US$1.7 tril­lion of for­eign in­vest­ment. And since the 18th CPC Na­tional Con­gress, China has be­gun to pro­mote a more open econ­omy by set­ting up pilot free trade zones, in­tro­duc­ing the man­age­ment model of pre-es­tab­lish­ment na­tional treat­ment (PENT) with a neg­a­tive list, open­ing more sec­tors and cut­ting the lim­its for the en­try of for­eign funds.

Chi­nese en­ter­prises have ven­tured abroad to in­vest, which has re­sulted in growth op­por­tu­ni­ties for lo­cal res­i­dents. From 2013 to 2016, China’s non-fi­nan­cial over­seas di­rect in­vest­ment reached US$491.5 bil­lion, up by 21.6 per­cent year on year.

China has al­ways pur­sued shared ben­e­fits. Ac­cord­ing to au­thor­i­ties, in the next five years, the coun­try’s to­tal im­ports are ex­pected to reach US$8 tril­lion, for­eign in­vest­ment US$600 bil­lion, over­seas in­vest­ment US$750 bil­lion and out­bound trips 700 mil­lion. These fig­ures fore­tell a big­ger mar­ket, more cap­i­tal and bet­ter rev­enue op­por­tu­ni­ties for coun­tries around the world.

Chi­nese Plans Fa­cil­i­tate World De­vel­op­ment

Since the 2008 in­ter­na­tional fi­nan­cial cri­sis broke out, the

global econ­omy has re­mained slug­gish. It has been dif­fi­cult for the world to es­cape from the mire of eco­nomic slow­down and evolve from old driv­ers of growth to new ones. China has ac­tively at­tempted to do just that.

Fac­ing the eco­nomic down­turn, China has not adopted largescale stim­u­lus poli­cies but pur­sued in­no­va­tive, co­or­di­nated, green, open and in­clu­sive de­vel­op­ment, pro­moted sup­ply-side struc­tural re­form, and freed and de­vel­oped pro­duc­tive forces and eco­nomic vi­tal­ity through re­form. Con­se­quently, China’s econ­omy has shown ris­ing mo­men­tum, set­ting a good model for the world. Hosted by China in 2016, the G20 Hangzhou Sum­mit ham­mered out a top-level plan for struc­tural re­forms, in­clud­ing pri­or­ity ar­eas, guid­ing prin­ci­ples and eval­u­a­tion in­di­ca­tors, of­fer­ing China’s ex­pe­ri­ence for world de­vel­op­ment.

Fac­ing a lack of global pub­lic goods, China is try­ing to fill in the gaps. The coun­try pro­posed the Belt and Road Ini­tia­tive, aim­ing to share China’s de­vel­op­ment op­por­tu­ni­ties with other na­tions along the routes and re­al­ize com­mon prosperity. China also helped es­tab­lish the Asian In­fra­struc­ture In­vest­ment Bank and the BRICS New De­vel­op­ment Bank, which have of­fered sys­tem­atic fi­nan­cial sup­port for re­gional co­or­di­nated de­vel­op­ment.

China’s rapid de­vel­op­ment has drawn global at­ten­tion and be­come a model for de­vel­op­ing coun­tries. Due to the im­pact of the 2008 in­ter­na­tional fi­nan­cial cri­sis, many de­vel­oped coun­tries have been stuck in eco­nomic slumps over the past sev­eral years, and so have some emerg­ing mar­ket economies. How­ever, China

has main­tained steady growth. Be­tween 2013 and 2016, China’s av­er­age an­nual eco­nomic growth rate hov­ered around 7.2 per­cent, con­sid­er­ably higher than the 2.5-per­cent global av­er­age level and even the 4-per­cent av­er­age growth of de­vel­op­ing economies. That num­ber tes­ti­fies to the ad­van­tages of China’s de­vel­op­ment path and has in­spired more coun­tries to learn and bor­row from China’s de­vel­op­ment ex­pe­ri­ence. At the same time, China’s de­vel­op­ment ev­i­dences that a coun­try can choose its own de­vel­op­ment path ac­cord­ing to its own his­tory and re­al­i­ties. China’s de­vel­op­ment has strength­ened the con­fi­dence of other coun­tries to choose an in­de­pen­dent de­vel­op­ment model that op­ti­mally suits their own na­tional con­di­tions and re­al­i­ties.

Clearly, China’s progress is pro­vid­ing op­por­tu­ni­ties for world de­vel­op­ment and the coun­try is mak­ing con­tri­bu­tions to the es­tab­lish­ment of an in­no­va­tive, vi­brant, in­ter­ac­tive and in­clu­sive world econ­omy.

Oc­to­ber 12, 2017: A pas­sen­ger scans a QR code at a Bus Rapid pid Tran­sit (BRT) sta­tion. Mo­bile pay­ments are al­ready widely useded in China. VCG

An assem­bly plant of China’s BYD Com­pany Limited in Lan­caster, aster, U.S., has cre­ated jobs for lo­cals. by Yang Lei/xin­hua

Septem­ber 19, 2015: A bird’s- eye view of the Shang­hai Free Trade Zone. Sev­eral Chi­nese free trade zones have strength­ened co­op­er­a­tion with over­seas part­ners. by Ding Ting/xin­hua

May 2017: A worker in­stalls a so­lar panel in Wuhan, Hubei Prov­ince. China gen­er­ates the most so­lar power in the world. VCG

The fourth phase of Shang­hai Yang­shan Deep­wa­ter Port will be put in ser­vice by the end of 2017. The port is the world’s largest au­to­mated con­tainer ter­mi­nal. China News Ser­vice/vcg

Septem­ber 30, 2016: IMF chief Chris­tine La­garde (cen­ter), IMF ex­ec­u­tive di­rec­tor for China Jin Zhongxia (third right) and oth­ers pose for a pic­ture at the head­quar­ters of the IMF in Wash­ing­ton. On Oc­to­ber 1, 2016, Chi­nese yuan joined the IMF Spe­cial Draw­ing Right (SDR) bas­ket. by Yin Bogu/xin­hua

April 9, 2016: Zhang Qingchun (sec­ond left) and Kenyan work­ers con­struct the Mom­basa-nairobi rail­way in Mom­basa, Kenya. by Pan Si­wei/xin­hua

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.