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China will Continue to Lead World Economic Growth

Submit Time:30-10-2017 | Zoom In | Zoom Out

Author:Cao Wenlian | Source:People’s Daily (September 14, 2017)

Abstract:

This year, the global economic situation has been better than expected as a whole. The latest IMF report raised the economic expectation of China in 2017 and 2018 by respectively 0.1 and 0.2 percentage points to 6.7% and 6.4%. This is the third time in the year that IMF adjusted up the economic growth expectation of China for 2017. In the meantime, international organizations and financial institutions such as JP Morgan Chase, Nomura Securities, the Chartered Bank, Citibank and Asian Development Bank also raised the economic growth expectation of China for 2017. The good situation of economic development in China has made important contributions to the world economic growth.  

Supply-side structural reform has achieved actual effect. At present, the economic performance of China is kept in an appropriate range, the stability, coordination and sustainability of economic development have obviously enhanced, outshining others in the world economic pattern. This is closely linked with our practice in recent years to deepen the reform and innovation and make efforts to implement policies, with the supply-side structural reform as the main line and increasing quality and efficiency as the center. To further deepen the supply-side structural reform, since the beginning of 2017, China has continually enhanced the decisive role of market in resource allocation, to break industrial monopoly and local barriers, inspire market vigor with reform, guide the market expectation with policy, indicate investment directions with planning, and formalize market behavior with rule of law. We energetically pushed ahead innovation and entrepreneurship, to stimulate the endogenous motive force and vigor of market players; we firmly advanced the reform of introducing mixed ownership to SOEs, and resolutely closed a batch of “zombie enterprises”. Centering on raising the innovation and competition ability, we actively fostered new type industries, transformed traditional ones, invigorated real economy, strengthened areas of weakness on the supply side, and increased the contribution rate of scientific and technological progress to economic growth. We paid more attention to preventing financial risks, and directed the finance to return to the origin of supporting real economy, to better meet the diversified financial demand from real economy.  

The China solution has helped improve global economic governance. At present, the underlying problems in world economy remain unsolved, with many unstable and uncertain factors, and promoting global economic growth, maintaining international finance stable and coping with conflicts, risks and challenges are the common voices of all countries. The Belt and Road Initiative proposed by China has become the most welcomed public product in the world. China advocates the road of international cooperation by joint consultation and construction for win-win mutual benefit, and leads the open, inclusive, preferential, balanced and win-win economic globalization. China supports handling affairs according to jointly formulated rules, seeking for high level agreements to facilitate investment and trade, and strengthening the coordination of macroeconomic policies of all countries, to push the open and inclusive development of world economy. China advocates to eliminate doubts and deal with challenges through consultation, avoid exclusive, enclosed and fragmented regional arrangement, and build dialogue platforms to allow all countries to understand each other and share risks and benefits, to push the global economic governance system to develop in a more fair and appropriate direction, as improvement and beneficial supplement to it. China gives full play to its leading advantages in the e-commerce and Internet finance, explores to establish new trade and marketing networks, strengthens cooperation with all countries in digital economy and smart manufacture, to jointly develop new technologies, new industries, new patterns and new products, and tap new motive force for world economic growth.  

China’s development has pushed the revival of world economy. After the international financial crisis, the world economic pattern came to a period of major adjustment, the revival in developed countries was slow, and developing countries were trapped in depression. China was the only country in the world maintaining steady economic growth with new breakthroughs, becoming the main force to drive the world economic growth. In 2016, China’s contribution to world economic growth reached 33.2%, more than the total from all developed countries, becoming the first engine in the world economic growth. In 2017, facing the complicated international economic environment with intensive competition and the problems, contradictions and challenges keeping on arising in the course of reform and development, China has enhanced its position as a big economic, manufacturing, trade and investment country with its outstanding top level design, flexible policy readjustment and powerful implementing capability, realizing economic growth of 6.9% in the first half of the year, extending the development situation of progress and improvement while maintaining stability, to continue to lead the world economy to move ahead. China is becoming an important investment provider in the world, advocator of regional economic cooperation, formulator of international economic and trade rules and constructor of global economic governance. The healthy development of Chinese economy will give a powerful impetus to the revival of global economic growth, and the Belt and Road and international production capacity cooperation will make global industrial division of work and resource allocation more rational, making continual contributions to further narrowing the south-north gap and maintaining the steady development of world economy.  

(Working unit: International Cooperation Center of National Development and Reform Commission)


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