China must adapt to sustainable growth

Source:Global Times Published: 2013-7-16 0:43:01

China's GDP growth slowed to 7.5 percent in the second quarter, a record low since 1990. This is generally in line with economists' expectations. Some foreign media commented pessimistically on China's economic trends on Monday, but the repeatedly downgraded forecasts in recent years haven't influenced China's domestic public opinion.

The lackluster growth rate of 7.5 percent corresponds to the central government's macroeconomic policy.

China is steering its economy from a period of rapid growth to a transition of moderate growth, which should be designed to have a more sustainable economy developing at a relatively fast rate.

Some changes will take place in this new development period. The most important thing is to make society adapt to those changes and reach a firm consensus on a new pace of development.

A slowdown in GDP growth has little impact on the national strategy. A growth rate of about 7 percent is adequate to fulfill China's objectives of doubling its GDP by 2020 and building a well-off society in an all-round way. Many analyses have shown that faster growth could present more problems than benefits, resulting in pressure on resources and the environment.

From the perspective of China's rise, the fact that China's GDP will surpass the US' sooner or later is not an intentional goal. The rise in the global rank of China's GDP should be a natural process. It's more important to put forward the domestic development and reform gradually.

Since speedy economic development is taken as an outstanding achievement of the Party's governance, some worry a slower growth will damage image of the Party and the government. However, even growth of 7 percent is strong globally. As long as China's economy grows at a relatively fast rate, the boost of China's political system to development will remain evident.

At present, there has been no obvious sign the public is trying to make a fuss over this lackluster data. However, the biggest challenge comes from employment.

Job opportunities, especially high-paying ones, will be lower for a while as the economy cools down. It's notable that employment brought by overly fast growth is not sustainable, which is often related to redundant construction and industrial overcapacity.

The Chinese public has maintained rationality and a cool mind in general so far. But in the future there is the possibility that some will make an issue of the cooling economy.

The government should enhance communication with the public, pointing out that the structural overhaul is in their long-term interests. Slowing economic growth doesn't mean low growth and a sluggish Chinese economy. Maintaining sustainable growth is still China's basic economic policy.

Making the public adapt to and become accustomed to moderate economic growth and making them realize China's bright prospects and various opportunities for individual development will ensure China's structural adjustment is successful.



Posted in: Editorial

blog comments powered by Disqus