Chinese economy will sail through storms as transformation and upgrades keep it vigorous

Source:Global Times Published: 2019/5/27 22:08:39

Illustration: Luo Xuan/GT

Every individual Chinese person shares a fate with the country, just as every drop of water flows in motion with the sea. Yiwu, in East China's Zhejiang Province, is one of the areas of the private economy that has grown the most. From vendors bartering door to door to a small commodities wholesale market selling buttons and rubber bands, it has grown into a hub for emerging industries such as design, equipment manufacturing and digital industries. 

Forty years after reform and opening-up, Yiwu's continuous transformation and upgrading is a microcosm of the vigorous and surging Chinese economy. China has become the second largest economy in the world and taken first place in manufacturing and trade in goods. It has also become the second largest country in terms of consumption and foreign investment inflow. China holds more in foreign reserves than any other country in the world. 

Forty years on, industrious and intelligent Chinese people have steadily set foot on a path to become wealthy and strong. The vitality of the Chinese economy still flows. It is the result of an extra-large economy following the laws of economics and the inevitable trend as the Communist Party of China has the courage to reform and innovate. 

Even Western media view China as a growth engine and source of confidence for the world economy.

The vitality of the Chinese economy stems from taking initiative and upgrading. The experience worldwide has shown that a natural transition will not help to surpass the middle-income stage. A total of 101 countries were listed as middle-income countries by the World Bank in 1960. By 2008, only 13 of them had reached high-income status. The Chinese economy under the "new normal" will succeed with quality rather than quantity. In recent years, China has implemented new development concepts and deepened supply-side reform, which have achieved historical accomplishments. The policymakers have pointed out that the Chinese economy will transfer from high-speed growth to high-quality growth and have made arrangements to promote high-quality growth. The strategic arrangements have opened the gate for China's economic vitality. 

The vitality of the Chinese economy was derived from scientific decisions and deepening reform. The tax reduction in the first quarter has totaled 341 billion yuan ($49 billion) to encourage companies to shift to high-quality growth and individuals to elevate consumer products. The bar for market entry has been lowered and the red tape has been reduced. In the first quarter, a total of 16,500 new companies were set up per day in China, an increase of 12.3 percent over the same period last year. Ministries have issued new systems and new methods to motivate the development of the sharing economy and digital economy. Companies, which provide platforms for production, everyday services and technological innovation as their primary business, have harvested revenue of 33 billion yuan in the first quarter, 24.8 percent more than the same period last year. The policy combinations have significantly improved the business environment, making the economy more energetic.

The vitality of the Chinese economy also comes from business innovation and people's enjoyment of their jobs. Technological advancements have been made, such as the birth of chips with visual analysis and mass production of flexible display screens. A new round of technological and industrial revolution is intertwined with economic upgrades. Companies' innovation ability has surged. As a result, thousands of new careers have been generated, adding new strength to the high-quality growth. The largest labor force in the world and its hard work have built confidence for the Chinese economy.

A just cause attracts the most support. As a firm supporter of global free trade and mutually beneficial cooperation, China's circle of friends has become larger and larger, which also brings forth more space for development. By bringing friends together with the same goals, the Chinese economy will sail through the storms.

The article was compiled based on a commentary recently posted by the People's Daily.


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