On Aug. 13, People’s Daily published an article under the pen name “Guo Jiping”, probing into the economic development of China. The abstract of the article is as follows.
The economic and trade friction unilaterally started by the US has brought too many uncertainties to Chinese economy and even the world.
However, China’s economy still maintains stability while making progress despite the domestic downward pressure and trade disputes with the US. It is still a major highlight of the world economy.
Any inharmonious voice that overstates China’s short-term economic fluctuation, sings the blue over the country’s economy, or exaggerates the country’s economic risks will be turned down in the face of facts.
The major macroeconomic indicators of China have been maintained within a reasonable range, and consumption is served as a more powerful engine of economic growth. In addition, domestic demand is making larger contribution to growth, with continuous improvement being made in people’s living standard and quality. More factors are driving high-quality development of the country.
China released half-year economic data in mid-July, saying its GDP increased 6.3 percent from a year ago, and 7.37 million new jobs were created. Besides, 19,400 new enterprises were being established on a daily basis, and consumption contributed 60.1 percent to economic growth. In addition, the service sector contributed 60.3 percent to GDP growth.
The annual economic growth of the country is equal to the total GDP of a medium-sized developed country.
China has a population of nearly 1.4 billion, a 900-million-strong workforce, a talent pool of 170 million college graduates and people with professional skills. It is also home to the world’s largest middle-income group and over 100 million market entities.
Domestic demand is a major driving force of China’s economic growth. It contributed 108.6 percent to the country’s growth in 2018, and final consumption 76.2 percent.
China is the world’s second largest investor in R&D, spending 2.18 percent of its GDP in this field. New economic drivers such as the strategic emerging industry and sharing economy are gradually maturing.
China is optimizing its economic structure, transforming development models and improving economic quality. It is seeing a more obvious trend of maintaining stability and making progress. Facts have proved that China has adequate conditions to keep stable, sustainable and healthy development of its economy.
The confidence for China’s high-quality economic development comes from the strong leadership of the of the Communist Party of China Central Committee (CPCCC). Such leadership, guiding the overall situation and coordinating the work of all sides, plays a key role for China to handle its affairs well.
The confidence also comes from China’s vital decision to implement reform and opening up. During the past 40 years, China has created an economic miracle, becoming the world’s second largest economy, the largest manufacturing country, the largest trader of goods, the second largest consumption power, and the second largest destination of foreign capital. In addition, it has also maintained for years the largest foreign exchange reserves.
Starting this year, the country successively issued Foreign Investment Law of the People’s Republic of China which has reduced the items on the negative lists for foreign investment market access in pilot Free Trade Zones and the rest of the country, and further expanded the areas of reform and opening up, demonstrating its sincerity and resolution to open wider.
The confidence comes from the country’s people-centered philosophy of development and also the undying spirit. It is because of the joint efforts made by every Chinese that China has turned risks into development opportunities and pressure into impetus again and again.
When global industrial chain, supply chain and value chain are highly integrating, China and the world need to maximize the common denominator of interests.
Today, China is a major trading partner of over 130 countries, the only country in the world that can produce all the products listed in the International Standard Industrial Classification of All Economic Activities(ISIC) which is issued by the United Nations, and the largest contributor for world economic growth. It will also promote the rapid development of other countries as China embraces high-quality development.
The global market needs to expand the cake of common interests, while equal and win-win cooperation maintains the only right path. Those practices forcing China to compromise and containing its development through adding additional tariffs and pressuring Chinese enterprises are ridiculous and doomed to fail.
The Chinese people believe that no power is able to deprive their country of the right to development or stop their efforts to pursue a better life. China has the confidence to conquer all difficulties and challenges, and the economic progress of the country is unstoppable.
The Chinese people will jointly pave a wider road leading to a brighter future together with the people from the rest of the world.
(Guo Jiping is the pen name for a commentary column of People’s Daily that explains China’s stands and views on major international issues.)
