A Economic Upswing
Steady and sound economic growth was achieved in the first quarter By Deng Yaqing
The Chinese economy grew by 6.9 percent in the first quarter of 2017, a result widely attributed to industrial expansion, booming consumption and soaring exports.
“China’s economy continued to undergo stable growth in the first quarter, with major indicators scoring much better than expected. This bodes well for future developments for the rest of the year,” said Mao Shengyong, spokesman of the National Bureau of Statistics (NBS), at a press conference held on April 17.
More specifically, the added value of major industrial enterprises rose 6.8 percent in the first quarter, one percentage point greater than the figure recorded in the same period last year. Moreover, price levels were generally stable, with the consumer price index (CPI) and producer price index (PPI) increasing 1.4 percent and 7.4 percent, respectively, year on year. The employment sector’s robust expansion was also a good sign, with 3.34 million people entering the workforce in urban areas—an increase of 160,000 people from the same period last year. Also, according to statistics from the NBS, the international balance of payments has improved, with the surplus in goods trade exceeding 450 billion yuan ($65.35 billion).
“Credit for these improvements should go to structural adjustments in various sectors brought about by the supply-side structural reform,” said Wan Zhe, chief economist of the International Cooperation Center of the National Development and Reform Commission, in an interview with China News Service.
Wan added that favorable external circumstances created by the possible appreciation of the U. S. dollar, stable European economic growth, reduced threat of a China-U.S. trade war and a stable renminbi exchange rate also contributed to China’s growth.
Besides that, hi-tech and equipment manufacturing industries saw their added value rise 13.4 percent and 12 percent, respectively, and online retail sales hit 1.4 trillion yuan ($203.3 billion), up 32.1 percent year on year.
“Furthermore, a tentative global economic recovery has shored up global demand, and thus fueled the rapid growth of China’s exports. The close contact and pragmatic cooperation between China and the U.S. as well as China’s efforts in pushing forward collaboration with countries along the Silk Road Economic Belt and 21st-Century Maritime Silk Road are also positive factors,” said Liu Dewei, a research fellow with the research institute of China Minsheng Bank, in an interview with China News Service.
In China, total electricity consumption grew 6.9 percent in the first quarter, with the manufacturing industry accounting for 75 percent of that growth, implying that industrial production was accelerating and that the real economy was rallying. The volume of railway freight also climbed 15.3 percent, a record high since April 2010, indicating that microeconomic activities were vigorous. To top that off, the purchasing management index (PMI) hit 51.8 percent, marking an increase for two straight months, with the index for new orders reaching 53.3 percent, suggesting a constant growth in market demand, Liu analyzed.
Propping up the economy
In the first quarter, the manufacturing in-