China boasts world-class transport infrastructure
China’s economy maintained a stable growth for the first half of 2013. The growth rate stood at 7.6%, which is relatively slower compared with the same period last year.
Authorities have attributed this trend to a host of actions and strategies employed by the Chinese government to promote long-term economic growth as part of an upgraded model for inclusive development.
The goal is to double the 2010 gross domestic product by 2020, as set out in the report of the 18th National Congress of the Communist Party of China.
To that end, it is imperative to change the growth pattern and re-adjust the country’s economic structure.
While in the past China’s economy was driven on “two wheels” of investment and export, a new approach of “four-wheel” drive vehicle has been adopted.
Added to this is consumption and science and technical innovation.
Under the new leadership, China is forging ahead with bold plans and efforts to take its rightful place as the world economic leader.
Dr Paola Subacchi, research director of international economics from Chatham House (also known as the Royal Institute of International Affairs), recently said China’s economy had turned the corner as the country had overcome bulk of the structural problems caused by overheating in the past.
Similar sentiments were expressed by the BBC, which also observed that China’s economic transformation will have a positive impact on the world.
This, BBC observed, is because China is poised to become the largest export market and is in good stead to reverse the trend of global income imbalances.
There are clear indications that the Chinese government has a clear grasp of the severe internal and external economic pressures facing the world, and drawing from the country’s vast experience in dealing with similar economic challenges it has taken concrete steps to mitigate these and move the country forward.
Following the international financial crisis in 2008, China took swift actions to readjust its macro economic policies and promulgated stimulus plans to expand domestic demand, maintain growth, improve people’s well-being and deepen reforms in various sectors of the economy.
International public opinion recognises China’s efforts because it has not only laid a foundation for China’s own growth, but also helped the world deal effectively with the crisis.
In an article titled Long Live China’s Boom, former chief economist and senior vice president of the World Bank, Justin Yifu Lin, stated that, compared with many emerging economies and even some high-income newly industrialised economies, China’s high private and public savings and a foreign reserve exceeding US$3.3-trillion give the country a better capacity to address the sluggish economy, great potential for industrial upgrading and infrastructure improvement, and that China’s annual growth potential should reach 8% for the 2008 to 2028 period.
According to a report from the National Development and Reform Commission of the Chinese government, the fundamentals of China’s economy are good, key reforms are being deepened, the potential of the market has been gradually released and business is getting more resistant to risks.
The readjustment of the economic structure and the upgrading of the economic development model are making steady progress.
China’s July manufacturing’s purchasing managers index demonstrated a stable and upward trend in demand, price, business activities and employment.
Zhu Baoliang, chief economist at the State Information Center (SIC), elaborated on China’s future economic development in his article The New Changes and Challenges Facing China’s Economy.
He pointed out that China will continue with the proactive fiscal policy and prudent monetary policy, properly scale up fiscal policy efforts, actively expand domestic demand and ensure a stable economic growth.
At the same time, it will scale up the strategic restructuring of the economy, step up efforts to push forward the reform of the economic system and enhance the endogenous power and vitality of economic development.
Such a policy will see a growth rate of about 8%, a mild inflation rate and a basically stable unemployment rate in 2013. The growth rate of China’s fixed asset investment will remain stable with slight decline.
Manufacturing companies are expected to start building their inventories, which will drive up industrial production. The growth of consumption will be relatively stable.
The tentative signs of global recovery will facilitate China’s export growth and foreign investment.
The synergy of all the above mentioned factors will be a strong driving force of China’s economy in the future.
Professor Klaus Schwab, executive chairman of the World Economic Forum, once said that China could still maintain a rapid economic growth even if the whole world slows down.
China’s fast economic growth has played a vital role in promoting the global economy, and China would be a leading force driving world economic growth.
Contents and photographs for this page were signed off by the Chinese embassy
