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Hong Kong Media Commentary: China's 40 Years of Profound Progress

Discussion in 'China & Far East' started by Adam WANG SHANGHAI MEGA, Apr 2, 2018.



    Aug 7, 2017
    +2 / 9,099 / -17
    Hong Kong Media Commentary: China's 40 Years of Profound Progress

    2018-04-02 09:45

    Hong Kong media said that China has transformed itself from an agricultural economy into a world-class digital and consumer-oriented economic powerhouse. Its driving force is the use of smart phone wallets for shoppers.

    According to the Hong Kong South China Morning Post website reported on March 31, 2018 is the 40th anniversary of China's economic reform and opening up. In December 1978, China’s open-door policy marked a turning point in its economic management and development trajectory.

    According to reports, in the past 40 years, the characteristics of China's economic management have shifted from strict central planning and export-oriented to more market-oriented and domestic-oriented consumption management.

    According to the "South China Morning Post" website, China's gross domestic product (GDP) has achieved an average annual growth of 10% in the past 40 years, which is three times that of the same period in the United States.

    According to the report, China's per capita GDP increased from 156 US dollars in 1978 to 8,123 US dollars in 2016, lifting more than 800 million people out of poverty. In contrast, the per capita GDP of the United States in 2016 was 57,638 US dollars, indicating that there is still room for growth in China.

    Today, according to purchasing power parity, China is the largest economy in the world. China is the world’s largest producer, exporter, and holder of foreign exchange reserves. China is actively seeking to play a leading role in globalizing and responding to climate change.

    The report said that all these impressive achievements are due to the perseverance and profound changes in China's economy and society, such as the elimination of agricultural collectivization, the expansion of international trade, and the welcome of foreign direct investment.

    The report pointed out that the Chinese government is also committed to reforms in the banking, securities, and insurance sectors. These measures include diversifying the bank’s equity structure and turning state-owned banks into joint-stock banks. The major securities companies reorganized and the insurance industry has also made progress.

    The report also pointed out that another key stage of reform is to allow more foreign capital to enter the Chinese capital market. In fact, China's capital account is becoming increasingly open. China now has the world’s second largest stock market. The total capital market value increased from 513 billion U.S. dollars in 2003 to 8.7 trillion U.S. dollars last year. China’s domestic bond market is currently ranked third in the world.

    According to reports, significant progress has been made in the internationalization of the renminbi. Just over a decade ago, the use of the renminbi was largely limited to mainland China. Today, more than 10% of China's trade is settled in renminbi.

    According to the report, China has been the recipient of foreign direct investment for 40 years and is now an important source of direct investment. Non-financial foreign direct investment surged from less than one billion U.S. dollars in 2000 to 170 billion U.S. dollars in 2016.

    The report also stated that China’s reform and opening up efforts have also allowed it to enter a new era of economic growth led by consumption, innovation and green energy.

    Changes are already happening. Domestic demand has steadily expanded. Last year, the contribution of consumption to economic growth reached 58.8%.

    The report said that China has also become a global leader in digital technology and innovation, thanks to its growing middle-class and younger generation, spending money generously, and a new generation of consumers who are in close touch with digital products.

    The report pointed out that China has more e-commerce activities than any other country in the world. It accounts for 42% of global e-commerce, and accounts for one-third of the most successful technology start-ups in the world. Mobile payments total 11 times that of the United States.

    According to the report, China still faces some challenges, including the aging population's medical care and economic sustainability and green development.

    According to the report, however, China has strengthened regional connectivity through the "Belt and Road Initiative" and has thus become the center of Asian economic growth.

    The report believes that this will help make Asia a dominant global economic force and is expected to account for 52% of global GDP by 2050. As a result, China will replace the United States as the world's largest consumer market and economy.