China should not be blamed for economic slowdown
CHINA and other world economies share weal and woe together amid global economic slowdown, and it is unreasonable to put all the blames on the world's second largest economy alone. With the annual sessions of China's top legislature and political advisory body approaching, the Chinese economy and the so-called spillover effects of its slowdown has become a hot topic again. As a matter of fact, the lackluster global economy comes along with a complicated process -- the profound economic restructuring of the United States and European countries, continuous de-leveraging, weak demand, and re-balancing of the global economy.
In many areas, China is not an exporter of the economic crisis, but an absorber and bearer of multiple pressures. Facing the crisis stemming from Western nations, China and other economies, which stand together in the same global value chain, should jointly meet the test of transformation.
Statistics can prove that the world economy is not dragged down by China, whose contribution to it currently accounted for up to 30 percent. Despite the slowdown in imports, the amount of China's imports of bulk commodities is not decreasing.
In addition, Chinese tourists were still the major consumer group as they spent 1.2 trillion yuan (184 billion U.S. dollars) overseas last year, according to an estimate by Fortune Character, a luxury market consultancy.
In the global value chain, China is transforming from a big importer of bulk com- modities into a key player of consumer goods and services.
The Asian giant is also in evolution from a world factory into a global end market.
In the opinion of George Magnus, a researcher with the University of Oxford China Center and senior advisor to the United Bank of Switzerland, due to such factors as the enormous size of the Chinese economy and its structural reform, the country is exporting a "new dividend" to the global economy.
He said that despite a slowdown in its economic growth, the country will not cause trouble to other economies.
At a time of economic globalization and regional integration, China and the world economy has formed a community of common destiny long ago.
In this context, all countries should cooperate and work out new measures in reform to tide over the difficulties, rather than pointing fingers at each other.
As a matter of fact, the Chinese economy is in no way as pathetic as some described.
Last year, consumption contributed up to 66.4 percent to the country's GDP growth, setting a new record since 2001. The tertiary sector accounted for 50.5 percent of China's GDP, 10 percent higher than that of the manufacturing industry. Against the backdrop of a 0.4 percent decrease in its growth rate, China managed to create 11 million jobs in 2015, 300,000 more than the previous year.
Driven by the ongoing supply-side structural reform, China has witnessed the upgrading of its economic structure despite the slowdown, as well as the rise of new industries along with the vanishing of old, outdated industries, which led to the expansion of job creation.
The purported signs of crash of the Chinese economy by some in a rush are, in effect, a strong proof of the economic transformation China has been pushing ahead with, according to John Edwards, a fellow of the Sydney-based Lowy Institute for International Policy. For global investors, China abounds with opportunities in the near future.
In 2015, venture capitalists invested a record 37 billion dollars in China, more than doubled the previous year's tally, according to data from British consultancy Preqin Ltd..
The company held that China, with more focus on innovation and improving quality, has been emerging as a legitimate challenger to the United States for leadership of the technology industry.
One basic fact that should be acknowledged is that China will by no means encounter overwhelming economic crisis nor recession, thanks to its huge economic aggregate, current market opening and social reform, people's lasting passion for innovation, as well as highly effective government controls. Just as Chinese Premier Li Keqiang has put it, the Chinese economy has been growing amid challenges.
It is advisable that some countries stop pointing fingers at China and abandon the notorious zero-sum mindset.
It is wise for them to turn to focus on working with China, through global platforms such as the Group of 20, to enhance production capacity cooperation worldwide and inject greater impetus into the sluggish global economy.