6.5% growth target consolidates faith in economy

Source:Global Times Published: 2017/3/6 0:33:39

China's GDP growth target for 2017 will be around 6.5 percent, or higher if possible in practice. This is one of the remarks in Chinese Premier Li Keqiang's government work report on Sunday that attracted widespread attention. China's economy has been stabilized in the macro level while continuing to promote structural reforms. The confidence of Chinese society has been consolidated. 

Will China's economic growth continue to slow all the way down? This has been the issue of most concern in the past few years. However, since the end of last year, people's faith in the Chinese economy has obviously started to rise again.

Structural adjustments in the Chinese economy have been comprehensively unfolded. Many enterprises with high energy consumption or that are heavy polluters have been shut down. The country no longer helps those inefficient enterprises to stay afloat. In addition, the anti-corruption campaign keeps squeezing improper spending. Problems have been exposed in fields where transformation is needed. Under such circumstances, it is truly rare and commendable for China to maintain economic growth of 6.5 percent.

Quite a few nations would turn to shock therapy when facing macro problems, which tends to result in violent social turbulence. The sudden shift in European and US immigration policies can well illustrate how easily they can turn their economic policies into a hard landing. China, on the other hand, can still make convincing plans to reach around 6.5 percent growth under downward pressure.

There are many problems in China's economy for the moment. Yet given that it is now stable on the whole, we do not fear these problems as they will most likely turn into future opportunities for further development. In the early stages of reform and opening-up, China lacked everything. People who had the chance to go abroad came back with color TVs and refrigerators. But not long after that, China developed into the largest producer of household appliances in the world. Today, Chinese people are purchasing high-quality big-ticket items when they travel abroad and increasing numbers of students are studying overseas, equivalent to educational "imports." These fields will without doubt become the new highlights of the emerging Chinese economy.

Experience across the globe indicates that it is not hard to reach short-term peak performance in development, so a period of slowed economic growth is not a big issue either. The hardest part is having trouble dealing with accumulated problems after a certain span of development, leading to turmoil or even a total rupture in the nation's progress.

China's biggest accomplishments in the past years are that it did not stop to make adjustments in its economic transition, instead, it adjusted itself while continuing to move forward. Now, society has fully adapted to the new normal in the country's economy.

A few years ago, when China's economic growth began to drop from 10 percent, it was startling. But now when we look back, we start to understanding the meaning of a soft landing.

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