From a Ben­e­fi­ciary to a Con­trib­u­tor in 40 Years

Dur­ing its four decades of re­form and open­ing up, China has evolved from a ben­e­fi­ciary of glob­al­iza­tion on to a con­trib­u­tor, be­com­ing a ma­jor en­gine for world eco­nomic growth and a driver of eco­nomic glob­al­iza­tion. tion.

China Pictorial (English) - - Front Page - Text by Chen Qiqing The au­thor is a pro­fes­sor with the Depart­ment of Eco­nom­ics, Party School of the CPC Cen­tral Com­mit­tee (Chi­nese Academy of Gov­er­nance).

In 1978, China em­barked on a his­toric jour­ney of re­form and open­ing up. Ever since, the coun­try’s econ­omy has be­come in­creas­ingly con­nected to the world mar­ket and in­te­grated with the global eco­nomic sys­tem. Over the past 40 years, China has ben­e­fited greatly from world eco­nomic growth, and its achieve­ments couldn’t have been re­al­ized with­out the sup­port from the in­ter­na­tional com­mu­nity. So to­day, China is en­thu­si­as­tic about mak­ing greater con­tri­bu­tions to the world.

En­gine for World Eco­nomic Growth

Since China’s re­form and open­ing up be­gan in the late 1970s, the con­tri­bu­tions that the coun­try’s eco­nomic de­vel­op­ment made to world growth have been con­stantly in­creas­ing. In 2006, China over­took the United States to be­come the largest con­trib­u­tor to global eco­nomic growth. Dur­ing the 2008 global fi­nan­cial cri­sis, when many ma­jor economies in­clud­ing the United States and Japan ex­pe­ri­enced neg­a­tive growth, China re­mained a ma­jor con­trib­u­tor to the global econ­omy. In re­cent years, the con­tri­bu­tion rate of the Chi­nese econ­omy to world growth has re­mained steady at around 30 per­cent. China has played an in­creas­ingly im­por­tant role as a sta­bi­lizer and driver of global eco­nomic growth.

Since its re­form and open­ing up be­gan, China has been one of the world’s most com­pet­i­tive ex­porters and top des­ti­na­tions for for­eign di­rect in­vest­ment ( FDI). Af­ter the 2008 global eco­nomic down­turn, the Chi­nese govern­ment made strate­gic ad­just­ments demon­strat­ing its abil­ity to smoothly adapt to new sit­u­a­tions. Equal im­por­tance was at­tached to both im­port and ex­port, and en­ter­prises were en­cour­aged to in­vest abroad as well as at­tract FDI. Pre­vi­ously, em­phases of the coun­try’s re­form and open­ing up were placed on in­creas­ing ex­port and at­tract­ing FDI. For about a decade, China’s im­ports and in­vest­ments abroad have been play­ing a big­ger role in global eco­nomic growth.

China’s im­port growth has in­flu­enced the whole world. The coun­try has be­come the fastest- grow­ing ma­jor im­port mar­ket glob­ally in re­cent years. In 2017, the to­tal value of goods im­ported by China stood od at US$1.8 tril­lion, ac­count­ing for 10.2 per­cent of the world’s to­tal, sec­ond ond only to the United States. Over the next 15 years, China is ex­pected d to im­port goods and ser­vices worth h more than US$30 tril­lion and US$10 tril­lion, re­spec­tively. From om Novem­ber 5 to 10, 2018, China hosted the China In­ter­na­tional Im­port Expo (CIIE), the world’s ’s first im­port expo at the na­tional l level. The CIIE has cre­ated a more ore con­ve­nient plat­form for goods to ac­cess the Chi­nese mar­ket and for var­i­ous coun­tries to share China’s a’s fast- grow­ing con­sumer mar­ket.

China’s in­vest­ments have ben­e­fited the world at large. Af­ter ter the 2008 global fi­nan­cial cri­sis, cross-bor­der in­vest­ments slumped. ped. How­ever, China’s out­bound di­rect ect in­vest­ments have seen a steep in­crease and are be­com­ing an im­por­tant cap­i­tal source for world rld eco­nomic growth. By the end of f 2017, the stock of China’s out­bound ound di­rect in­vest­ments reached US$1.48 1.48 tril­lion, and the to­tal as­sets of China’s en­ter­prises abroad ex­ceeded eded US$5 tril­lion, which have be­come me key driv­ers pro­mot­ing eco­nomic c de­vel­op­ment in host coun­tries.

China’s out­bound in­vest­ments are im­prov­ing in­fra­struc­ture in host coun­tries, fa­cil­i­tat­ing eco­nomic take­offs and cre­at­ing more jobs glob­ally. Ad­vo­cate of Eco­nomic Glob­al­iza­tion

While China has ben­e­fited from glob­al­iza­tion, its de­vel­op­ment is also con­ducive to glob­al­iza­tion. At present, eco­nomic glob­al­iza­tion is en­dur­ing twists and turns, with pro­tec­tion­ism and uni­lat­er­al­ism on the rise. Against this back­drop, China has re­mained stead­fastly com­mit­ted to eco­nomic glob­al­iza­tion and strives to be an ad­vo­cate and pro­moter of the process.

China ex­plic­itly op­poses pro­tec­tion­ism and de­fends the mul­ti­lat­eral trad­ing sys­tem. The mul­ti­lat­eral trad­ing sys­tem, with the World Trade Or­ga­ni­za­tion ( WTO) at the core, serves as the cor­ner­stone for cur­rent in­ter­na­tional trade and the pil­lar sup­port­ing its healthy and or­derly de­vel­op­ment. China be­lieves the rules of the WTO should be up­held firmly and its nec­es­sary re­forms should be sought. The coun­try wants to make eco­nomic glob­al­iza­tion more open, in­clu­sive, bal­anced and ben­e­fi­cial for all.

China will res­o­lutely ex­pand its open­ing up. In the face of ris­ing pro­tec­tion­ism, in­stead of clos­ing its door as a re­flex, China is em­brac­ing the world with an even more open at­ti­tude. The coun­try has been com­mit­ted to im­ple­ment­ing a man­age­ment sys­tem based on pre- es­tab­lish­ment na­tional treat­ment and a neg­a­tive list. It will broaden mar­ket ac­cess by a large mar­gin, ex­pand the open­ing up of its ser­vice in­dus­try, fur­ther lower tar­iffs and pro­mote trade and in­vest­ment lib­er­al­iza­tion and fa­cil­i­ta­tion. In gen­eral, a more open China will in­ject stronger im­pe­tus into the eco­nomic glob­al­iza­tion process which is cur­rently fac­ing head­winds.

Driver of World De­vel­op­ment

China is now com­mit­ted to con­tribut­ing wis­dom and so­lu­tions to ad­dress the world’s de­vel­op­ment prob­lems. And China’s de­vel­op­ment ideas are grad­u­ally be­com­ing ac­cepted by more coun­tries in the world.

The path for­ward for de­vel­op­ing coun­tries has been a long-stand­ing is­sue. China’s rapid eco­nomic rise opens two new win­dows for de­vel­op­ing coun­tries to con­sider. First, it has pro­vided a new model for de­vel­op­ing coun­tries to re­al­ize rapid eco­nomic de­vel­op­ment. Sec­ond, China’s achieve­ments have re­in­forced the con­fi­dence of some coun­tries in their own unique de­vel­op­ment paths which were de­signed ac­cord­ing to their re­spec­tive na­tional con­di­tions. China’s ex­pe­ri­ence il­lus­trates that every coun­try can choose a de­vel­op­men­tal path suit­able for its own na­tional con­di­tions based on the his­tor­i­cal con­text and prac­ti­cal needs.

China’s achieve­ments in poverty alle­vi­a­tion lead the world’s poverty re­duc­tion cause. China has be­come the largest con­trib­u­tor to the global fight against poverty. Ac­cord­ing to 2010 cri­te­ria, from 1979 to 2017, the poverty-stricken pop­u­la­tion in China’s ru­ral ar­eas dropped by 740 mil­lion, and the poverty in­ci­dence rate in the coun­try has fallen to 3.1 per­cent. China’s ac­com­plish­ments in the global ef­fort to com­bat poverty are im­pres­sive. Fur­ther­more, China’s tar­geted poverty alle­vi­a­tion ef­forts have pro­vided the global poverty re­duc­tion bat­tle with ex­am­ples of Chi­nese so­lu­tions and wis­dom.

New con­cepts pro­posed by China such as pur­su­ing in­no­va­tive, co­or­di­nated, green, open and shared de­vel­op­ment are guid­ing China’s new de­vel­op­ment, and they are also be­com­ing more widely ac­cepted by the in­ter­na­tional com­mu­nity. Th­ese trends have be­come de­vel­op­men­tal con­cepts adopted in a wide va­ri­ety of coun­tries as they re­al­ize co­or­di­nated so­cial and eco­nomic progress and pro­mote com­mon pros­per­ity.

Peo­ple read the news about China's ac­ces­sion to the World Trade Or­ga­ni­za­tion ( WTO) at Tian'an­men Square, Bei­jing, in 2001. Since China joined the WTO, it has been ac­tively ful­fill­ing its WTO com­mit­ments and mak­ing greater con­tri­bu­tions to the world econ­omy. CFB

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