Chinaʼs Economic Performance in 2017 Exceeded Projections

In 2017, Chinaʼs GDP grew by 6.9% to 82.7 trillion Yuan or 12-plus trillion USD. It recorded the first acceleration since 2011. The increase in the single year of 2017 was equivalent to the total amount of the GDP of the worldʼs 14th largest economy in 2016. Chinaʼs economy performed better than projections, maintained a sound and stable momentum, and has been developing in a more coordinated and sustainable way.

THE GROWTH IS HIGHER IN QUALITY.

Among various sectors, the service sector has become the main driver of economic growth, the added value of which took up 51.6% of GDP and contributed 58.8% of economic growth. Domestic demand has steadily expanded, contributing 58.8% of economic growth. Economic growth has shifted from over-dependence on investment and export to being driven mostly by service and domestic consumption. Further progress was made in pursuing the innovation-driven development strategy, leading the transformation from “made-in-China” to “created-in-China”.

THE GROWTH IS “GREENER”.

China focused on five priority tasks -- cutting overcapacity, reducing excess inventory, deleveraging, lowering costs, and strengthening areas of weakness. In 2017, energy consumption per unit of GDP fell by 3.7%, exceeding the 3.4% target set in the beginning of the year. Priority was given to cutting overcapacity in the steel and coal sectors. Since 2016, China has cut 150 million tons of steel capacity, eliminated an additional 140 million tons of substandard steel capacity, and phased out over 500 million tons of coal capacity. China has actively fulfilled its pledges to tackle climate change and has devoted serious energy to ecological conservation, leading to notable progress in pollution control and marked improvements in environmental protection. The density PM2.5, for example, has been lowered in 338 cities, Beijing in particular. The sky is bluer and the waters are clearer.

THE GROWTH IS MORE PEOPLECENTRED.

Jobs and income grew rapidly. In 2017, per capita disposable income increased by 7.3% in real terms, outpacing GDP growth. Over 13 million new jobs were created, keeping unemployment rate at 4.98%. Old-age insurance system now covers more than 900 million people, and 1.35 billion people are covered by basic medical insurance. Chinaʼs medical insurance net is already the worldʼs largest. More than 10 million rural residents were lifted out of poverty. More than 6 million homes in rundown urban areas were renovated. Various initiatives to improve peopleʼs livelihoods have been implemented. Peopleʼs sense of fulfillment, happiness and security have grown stronger.

WHATʼS THE “SECRET WEAPON” OF CHINAʼS ECONOMIC SUCCESS?

“Nothing comes from nothing. Nothing ever will.” Chinaʼs four-decade long sustained growth didnʼt just come. 2018 marks the 40th anniversary of Chinaʼs reform and opening-up. The phrase “reform and opening-up” tells everything. The world may have got used to Chinaʼs fast growth. But the Chinese government never took it for granted and has been constantly implementing reform measures. And reforms are getting ever more expansive and extensive. According to the 19th National Congress of the Communist Party of China, successfully convened in October last year, “comprehensive deepening of reforms” is one of the key “basic policies” that China will follow.

CHINAʼS GROWTH BENEFITS THE WORLD.

China has not only contributed 30% to global growth consecutively for the past five years and 129 million outbound tourists in 2017. China also contribute to world governance. The Belt and Road Initiative, put forward by President Xi Jinping in 2013, proposes policy coordination, unimpeded trade, infrastructure connectivity, financial cooperation and people-to-people affinity under principles of equal consultation, joint construction and shared benefit and welcomes all interested countries to participate and benefit. Starting from 2018, China will hold annual China International Import Expo. China is up to now the only major country that encourage import by holding major events like this. China welcomes other countries to take a “free ride” on Chinaʼs “economic express”. China invites all countries to join hands in forging a community with a shared future for mankind and build an open, inclusive, clean and beautiful world that enjoys lasting peace, universal security and common prosperity. “Letʼs get together and feel alright!”