With higher quality development, China fears no headwinds

China Plus Published: 2019-10-18 22:53:49
Share this with Close
Messenger Messenger Pinterest LinkedIn

Note: The following article is taken from the Chinese-language "Commentaries on International Affairs."

Data released by China's National Bureau of Statistics on Friday shows that the country's GDP expanded by 6.2 percent in the first nine months of the year over the same period last year, reaching almost 70 trillion yuan (nearly 10 trillion U.S. dollars). This means that China remains the fastest growing economy among the world's major countries. Other macroeconomic indicators, such as the urban employment rate, Consumer Price Index, and per capita disposable income, all remain within a reasonable range.

A high-speed train runs past Nanjing, Jiangsu Province, on October 18, 2019. [Photo: IC]

A high-speed train runs past Nanjing, Jiangsu Province, on October 18, 2019. [Photo: IC]

The data released on Friday also shows that China's economy has improving structures of supply and demand. According to the statistics bureau, in the first three quarters of the year, the value added of the tertiary industry accounted for 54 percent of GDP, contributing 60.6 percent to GDP growth. The strategic emerging industries and high-tech industries maintained their fast growth. And the contribution of final consumption to GDP growth was 60.5 percent, much higher than that of other factors such as investment and exports. Taken together, these figures reflect the growing momentum that's been unleashed in domestic markets.

These achievements were made despite the slowdown in global growth and trade caused by increasing unilateralism and trade protectionism, and were thanks to the government's timely introduction of countercyclical policies, including a proactive fiscal policy, a prudent monetary policy, and cuts in taxes and fees. In the first eight months of the year, the government pared back 1.5 trillion yuan (around 200 billion U.S. dollars) of taxes and fees, in line with the pledge it made earlier in the year.

Other measures, such as adopting a new foreign investment law and establishing and expanding pilot free trade zones, helped to further open up the country's markets. In the first three quarters of this year, foreign investment in China was 6.5 percent up on what it was a year ago. And according to the latest figures released by the World Trade Organization, China outperformed countries including Germany, Japan, and South Korea in terms of the growth of foreign trade, and remained the world's largest trader of goods.

These achievements were also helped along by the efforts of China's enterprises to reinforce their capability for innovation. According to the Ministry of Industry and Information Technology, more than two-fifths of the country's industrial enterprises with annual main business revenue of 20 million yuan (close to 3 million U.S. dollars) or more have carried out technological innovation projects. More than 70 percent of all research and development investment in China was made by enterprises. In June, when MIT Technology Review unveiled its list of "50 Smartest Companies for 2019", 38 of the companies listed are from China.

China has been the top contributor to global growth since 2006. And it will remain an important force driving the world economy forward with resilience thanks to its continuous efforts at economic restructuring.

Related stories

Share this story on


LU Xiankun Professor LU Xiankun is Managing Director of LEDECO Geneva and Associate Partner of IDEAS Centre Geneva. He is Emeritus Professor of China Institute for WTO Studies of the University of International Business and Economics (UIBE) and Wuhan University (WHU) of China and visiting professor or senior research fellow of some other universities and think tanks in China and Europe. He also sits in management of some international business associations and companies, including as Senior Vice President of Shenzhen UEB Technology LTD., a leading e-commerce company of China. Previously, Mr. LU was senior official of Chinese Ministry of Commerce and senior diplomat posted in Europe, including in Geneva as Counsellor and Head of Division of the Permanent Mission of China to the WTO and in Brussels as Commercial Secretary of the Permanent Mission of China to the EU. Benjamin Cavender Benjamin Cavender is a Shanghai based consultant with more than 11 years of experience helping companies understand consumer behavior and develop go to market strategies for China. He is a frequent speaker on economic and consumer trends in China and is often featured on CNBC, Bloomberg, and Channel News Asia. Sara Hsu Sara Hsu is an associate professor from the State University of New York at New Paltz. She is a regular commentator on Chinese economy. Xu Qinduo Xu Qinduo is CRI's former chief correspondent to Washington DC, the United States. He works as the producer, host and commentator for TODAY, a flagship talk show on current affairs. Mr. Xu contributes regularly to English-language newspapers including Shenzhen Daily and Global Times as well as Chinese-language radio and TV services. Lin Shaowen A radio person, Mr. Lin Shaowen is strongly interested in international relations and Chinese politics. As China is quite often misunderstood in the rest of the world, he feels the need to better present the true picture of the country, the policies and meanings. So he talks a lot and is often seen debating. Then friends find a critical Lin Shaowen criticizing and criticized. George N. Tzogopoulos Dr George N. Tzogopoulos is an expert in media and politics/international relations as well as Chinese affairs. He is Senior Research Fellow at the Centre International de Européenne (CIFE) and Visiting Lecturer at the European Institute affiliated with it and is teaching international relations at the Department of Law of the Democritus University of Thrace. George is the author of two books: US Foreign Policy in the European Media: Framing the Rise and Fall of Neoconservatism (IB TAURIS) and The Greek Crisis in the Media: Stereotyping in the International Press (Ashgate) as well as the founder of chinaandgreece.com, an institutional partner of CRI Greek. David Morris David Morris is the Pacific Islands Trade and Investment Commissioner in China, a former Australian diplomat and senior political adviser. Harvey Dzodin After a distinguished career in the US government and American media Dr. Harvey Dzodin is now a Beijing-based freelance columnist for several media outlets. While living in Beijing, he has published over 200 columns with an emphasis on arts, culture and the Belt & Road initiative. He is also a sought-after speaker and advisor in China and abroad. He currently serves as Nonresident Research Fellow of the think tank Center for China and Globalization and Senior Advisor of Tsinghua University National Image Research Center specializing in city branding. Dr. Dzodin was a political appointee of President Jimmy Carter and served as lawyer to a presidential commission. Upon the nomination of the White House and the US State Department he served at the United Nations Office in Vienna, Austria. He was Director and Vice President of the ABC Television in New York for more than two decades.