Chinese economy enjoys infinite potential

By Lu Yanan from People’s Daily

Chinese economy was “above expectations and steady from the previous quarter”. That was evaluation from the Reuters after China released its economic data of the first quarter this year. It is in line with the mainstream expectation of the international society on the development of Chinese economy.

Since April, multiple international financial organizations including the International Monetary Fund (IMF), Citibank, and JPMorgan Chase have lifted forecast on China’s economic growth this year, expressing optimism for the prospect of Chinese economy.

China has maintained medium- to high-speed growth as a super large economy, and will soon finish the building of a moderately prosperous society in all respects as the largest developing country in the world, making 1/5 of the global population medium- to high-income earners. Besides, it is also continuously opening wider as the world’s largest trader of goods.

These efforts have not only won high-quality development of China, but also injected strong impetus for the development of the world economy, silencing the ridiculous voices chanting the collapse of Chinese economy.

Today, more and more people believe that the resilient Chinese economy contains infinite potential.

The potential comes from the optimized economic structure. Compared with investment and export, consumption is a more stable driver of economic growth. In the first three months of 2019, final consumption contributed 65.1 percent to China’s economic growth. The consumption continued serving as a basis for economic growth, which is also a major source of the Chinese economy’s resilience.

Foreign experts predicted that as the number of China’s middle-income earners keeps expanding, the country’s consumption will surge to $14.3 trillion by 2030, accounting for 22 percent of the world’s total.

The potential comes from the big space for maneuver. Amid synergetic development of new industrialization, informatization, urbanization and agricultural modernization, China is continuously creating power and space for development.

In the first season, the investment in ecological and environmental protection, education and manufacturing saw growths of 43 percent, 14.7 percent and 16.9 percent respectively, much faster than the fixed-asset investment of 6.3 percent (excluding rural households).

By actively seeking solutions to imbalanced and inadequate development, and accelerating the building of a strong domestic market, Chinese economy will only enjoy larger potential.

The potential comes the country’s faster pace to replace old growth drivers with new ones. In China, 7 patent applications are submitted each minute, 250,000 passengers take high speed trains each hour, and 16,500 new enterprises are registered each day. Besides, the country has manufactured the world’s thinnest glass, produced the world’s lightest subway cars, built the world’s longest cross-sea bridge, and developed the world’s largest amphibious aircraft.

With the implementation of the national strategy on innovation-driven development, the share of China’s R&D investment in its GDP has exceeded that of the European Union. New drivers, represented by strategic emerging industries and sharing economy, are continuously expanding, becoming powerful engines for China’s high-quality development.

The resilience and potential of China’s economy are a hard-won result. For resilient economies, policies and mechanisms should be adjusted to improve the efficiency of economic activities, thus creating long-lasting economic energy.

By the end of 2018, more than 95% of the 336 major reform measures proposed by the Third Plenary Session of the 18th CPC Central Committee have been implemented.

China must unswervingly stick to the supply-side structural reform, and guide its economy into a virtuous circle of price recovery, cost reduction, profit increase and confidence boost. With the firm conviction of reform and courage to open wider, Chinese economy will embrace vigorous development and step onto a higher level.

A 2017 Forbes article noted that the China miracle isn’t over -- it has entered its second phase. Chinese economy, experiencing rains and storms, will withstand the tests and create bigger miracles by taking historical opportunities, deepening reform and opening up, and promoting high-quality development.