Lower GDP growth will not hide China’s growth potential

Source:Global Times Published: 2019/1/23 21:28:44

That China's economic growth slowed to 6.6 percent, a 28-year low, has sparked heated discussion. With China's great efforts to address overcapacity in recent years, many polluted rivers have turned clearer with Northeast China seeing fewer smog days. GDP growth will recover if we relax our efforts at tackling pollution. But is this what we want to see? 

The unhealthy entertainment industry, especially the pornography industry, has been severely regulated. An eight-point frugality code has banned excessive use of vehicles in public institutions and State-owned enterprises and practices such as the use of public funds to hold banquets, buy gifts, pay for holidays and hold meetings in luxury hotels. 

If all these resume, they will contribute to GDP growth. But does the Chinese public want a higher GDP boosted by worsening pollution, corruption and vulgarity? Most would answer "no." China has comprehensively made economic, social and political adjustments in recent years. The GDP growth rate has lowered. But with clean governance, increased social righteousness and fairness as well as recovering soil, water and air, isn't our society moving in the right direction? 

New ideas, new paths and new impetus for China's economic and social development are taking shape. China's past development achievements were realized in a rough way. What we need to do next is to make changes.

In history, some major adjustments were made through shock therapy approaches. China so far is the only high-growth economy that hasn't experienced a serious hard landing crisis. 

The global financial crisis and trade war have added to the complexity of China's economic adjustments. But China has been able to counter the negative effects and the Chinese economy has become more resilient. The 6.6 percent growth rate reflects the maturity of the Chinese system. 

Some Western analysts are pessimistic about China's economic prospects. Their analyses, superficially based on statistics, fail to dig deeper into the issue. 

China contributed about 30 percent of the world's economic growth in 2018, still ranking first. As the second largest economy, the prospects of market expansion in China are most promising. China's economic strength and national strength have maintained an upward trend year by year, which will not be disrupted by lower economic growth.  

Of course the Chinese economy has its own problems. The outside world's opinions deserve our attention. However, it has been proven that they are often biased, not as accurate as our own judgment since reform and opening-up. The outside world in general has failed to understand the context and logic of China's development. Swayed by different positions and values, their conclusions often deviate from the reality of China. 

There are stronger driving forces to China's economic growth than the Westerners think. We are grappling with many problems, but none will prevent people from pursuing a better life. 

Posted in: OBSERVER

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