To skeptics: Chinese economy is not gonna collapse
China's economy has now entered a new normal. The Chinese government is a capable steward and confident that it can lead the economy to overcome any obstacles that present themselves, keep steady and sustainable growth, and become a strong power to support the world economy.
The confidence of the government results from an objective assessment of China's position.In terms of the economy, though growth has slowed down, the growth rate remains stable and issues of concern such as unemployment, hyperinflation, and debt crisis have not emerged. Against a base of the 7.4 percent growth rate of last year, China's economy had a very steady performance in the first quarter of this year with an improvement in employment and people's living standards.
In terms of potential, the Chinese economy is still on the rise. China is currently sparing no effort to promote new models of industrialization, informatization, urbanization,agricultural modernization, and greenification, which will all contribute to new economic growth. Tertiary industry is also playing its role well in the development of the economy.
In terms of economic aggregate, China is already the world's second largest economy. At its current pace of growth, the annual net growth in China economy equals to the scale of a medium size economy. Its imports and exports, foreign exchange reserves, and foreign investment are all ranked No.1 in the world. Hence China's position as a major engine fueling world economic growth will not change in the foreseeable future.
China's confidence comes from the commitment to deepening reform. China is now committed to transforming the national economic structure and reducing structural risks.In recent years the development of hi-tech industry has been faster than the average paceof industry as a whole. The contribution from tertiary industry has surpassed primaryindustry in the past two years, reaching a historic high. The contribution to the economy from consumption has also exceeded investment. The income gap between urban and ruralresidents has narrowed, the development gap between east, middle, and west is narrowing,and personal incomes are taking a larger portion of GNP.
China has been freeing up and stimulating productive forces with all-round reform. Bystreamlining administrative procedures and delegating power to lower levels, thegovernment is promoting financial and fiscal reform to allow the market to perform itsdecisive role in resource allocation. From extensive to intensive, from low-end to high-end,China's economy will advance and invigorate sustainable development.
Confidence also results from an accurate grasp of cooperation and win-win – the trends ofthe times. China is actively promoting the "One Belt and One Road", which has beenwarmly welcomed by the international community. The construction of the AsianInfrastructure Investment Bank has also achieved its first victories and improvedinternational confidence and expectations of China as a new global investor.
At the same time, China is now in a new active phase of opening up, combining "goingglobal" and "bringing in", and improving the investment environment and the conditionsfor trade. Other priorities are international cooperation and building a community ofcommon benefit, responsibility and destiny.
In this new phase of development, China will bring fresh opportunities to the world. Theinternational community can rely on China to make a steady contribution to nationaleconomic development, as well as to the peaceful and sustainable development of the worldas a whole.
