Re­solve for high-qual­ity growth tops the agenda

China Daily (Latin America Weekly) - - Comment -

Tenac­ity is the term Pres­i­dent Xi Jin­ping used in his key­note speech at the Cen­tral Eco­nomic Work Con­fer­ence on Fri­day to em­pha­size how China’s econ­omy can main­tain its mo­men­tum. And de­spite the risks and un­cer­tain­ties the Chi­nese econ­omy faces at home and abroad, the con­fer­ence said the prospects of bet­ter qual­ity eco­nomic de­vel­op­ment and so­cial progress are high.

The eco­nomic sit­u­a­tion at home and abroad could not have been more com­pli­cated and dif­fi­cult. The trade fric­tions with the United States, drop in com­mod­ity prices and slower global growth among oth­ers have taken a toll on the eco­nomic growth of many coun­tries in­clud­ing China.

That China has main­tained healthy eco­nomic growth has helped it to cope with the ex­ter­nal chal­lenges, re­al­ize the goals of macro-reg­u­la­tion rel­a­tively well, and make ex­cel­lent progress in the bat­tles against ma­jor risks, poverty and pol­lu­tion.

Since the fo­cus on high-qual­ity growth has paid high div­i­dends, pro­mot­ing high-qual­ity de­vel­op­ment of man­u­fac­tur­ing will be ben­e­fi­cial to over­all eco­nomic growth.

The steady in­crease in in­vest­ment in man­u­fac­tur­ing, ser­vices, high-tech and equip­ment pro­duc­ing in­dus­tries, along with the low un­em­ploy­ment rate speak vol­umes of the tenac­ity of China to main­tain sta­ble and qual­ity growth.

True, China has enough rea­son to be op­ti­mistic about its econ­omy, not least be­cause glob­al­iza­tion will con­tinue to ex­pand de­spite some coun­tries’ pro­tec­tion­ist and uni­lat­eral trade poli­cies. But hav­ing a win­dow of op­por­tu­nity for de­vel­op­ment is one thing, seiz­ing it is an­other. Cau­tious op­ti­mism is there­fore called for, es­pe­cially be­cause get­ting the gov­ern­ments at all lev­els to im­ple­ment all the poli­cies to the let­ter is not an easy task.

Which is im­por­tant given the frame­work for the eco­nomic growth plan for next year em­pha­sizes that fis­cal stim­u­lus will come from lo­cal gov­ern­ments and mone­tary pol­icy through direct fi­nanc­ing to pri­vate en­ter­prises, es­pe­cially small and medium-sized en­ter­prises.

Do­mes­ti­cally, as long as China con­tin­ues to up­grade its eco­nomic struc­ture for qual­ity growth — driven by in­no­va­tions in sci­ence and tech­nol­ogy, and fur­ther tap­ping of var­i­ous sec­tors’ po­ten­tial — its de­vel­op­ment will con­tinue to of­fer op­por­tu­ni­ties for the Chi­nese econ­omy as well as other economies.

But to tap the po­ten­tial for de­vel­op­ment by fur­ther­ing re­form and open­ing-up, lo­cal gov­ern­ments need to lo­cate where the ben­e­fits of re­form and lo­cal res­i­dents’ in­ter­ests con­verge and how the lat­ter can be mo­bi­lized to push ahead re­form. As such, tenac­ity will help China main­tain steady and healthy growth pro­vided all the lo­cal lead­ers sin­cerely and hon­estly im­ple­ment the poli­cies in the way they should.

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