China enters a new phase of high-quality economic development: Russian scholar
Published: Apr 01, 2024 06:08 PM
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A view of Shanghai Photo: VCG

A view of Shanghai Photo: VCG

Editor's Note:
Recently, Western media outlets have kept on disparaging the Chinese economy, claiming it is losing steam and it is peaking. The reality is that the Western media lack objective understanding of the economy. Their pessimism about the Chinese economy is excessive. At a symposium on China's Compounding Interest: High-Quality Development and Outlook for 2035 sponsored by Renmin University of China's Chongyang Institute for Financial Studies on Sunday in Beijing, international scholars shared their views on the new phase of the development of the Chinese economy, refuting Western media's "China Declines" narrative.

Recently, a good number of publications have emerged quoting Western sources claiming that the "Chinese growth is coming to an end," and alleging that "China is exhausted," with its labor force becoming scarce. They unanimously forecast Chinese economy will decline, however statistics tell that many of these claims are based on lies.

The Chinese economy, in fact, is moving toward the next stage of solid development and is posed to be propelled by new technological innovations, while also pivoting toward low-carbon green growth.

And, the country's services output value expanded by nearly 6 percent between January and February this year. The Western narrative spinning an end of the Chinese economic miracle is nothing but ill-indented falsification.

China's economic growth rate of about 5.2 percent last year is much higher than the growth rates seen in Western countries. This means that the gravity of global economic activity has moved to China and other emerging economies in Southeast Asia. 

The Chinese way of rapid economic growth exemplifies a new economic mode for the whole world, in which the institutional structure of the Chinese economy is combined with the government's strategic planning, the effective management of the monetary and fiscal policies, vigorous market competition, broad use of new and high technologies and more. If one looks for the goals of the Chinese economy which have been announced by the Chinese government, the continuation of the GDP growth by around 5 percent, the creation of more than 12 million new urban jobs, and the drop of around 2.5 percent in energy consumption per unit of GDP, it means that the Chinese economy is going through a new phase of modernization. 

It is this new type of industrialization that will propel much more efficient energy consumption and bring about enormous new opportunities for China and other countries.

What makes the Chinese system of management more efficient than that of the former Soviet Union or the US and other Western economies is that China's management system is a combination of various instruments to achieve one goal - the growth of the well-being of 1.4 billion Chinese people. Many Western leaders ignore these points, since they don't understand that the policy of economic growth should be the combination of all those specific instruments.

The article is based on a video speech delivered by Sergey Glaziev, vice president of the VEO of Russia and minister for Integration and Macroeconomics at the Eurasian Economic Commission, at the recent symposium in Beijing.