China anchors global economy

By Yasir Habib Khan

China is positioned to anchor world economy offering all panaceas to recover headwinds and continue to make steady growth to meet shared goals, which is nothing else but to benefit seven billion people of all continents.  

The justification to prove China as linchpin of world economy lies in its mega role in world GDP and other multiple economic pointers. Being single largest contributor, it shares 30 percent of global economic growth. 

The statistical fact is well substantiated by Premier Li Keqiang during his policy statement delivered at fifth session of the 12th National People's Congress GDP. In the backdrop of stagnation in advanced economies and stifling growth in different parts of world, China GDP swelled to 74.4 trillion yuan. The CPI rose by 2 percent. With an 8.5-percent increase in profits, industrial enterprises reversed the previous year's negative growth of 2.3 percent. Energy consumption per unit of GDP fell by 5 percent. Economic performance improved markedly in quality and returns, premier Li Keqiang signifies the status of performance that marks the dawn of new era of Chinese supremacy in world economic chessboard. . 

These promising indicators and contribution become more significant when other economies go dwarf being highly vulnerable to successive world economic meltdown, financial crisis, bankruptcy and recessions. 

China is edging close to account for 25 percent of global output in coming three years while major economies have been stumbling. The World Economic Outlook in its two financial reports mentioned lower growth in all the advanced economies, The IMF's twice-yearly Fiscal Monitor report spelled the doom when it pointed out debt in the nonfinancial sector of the world economy doubled in nominal terms since the turn of the century, touching $152 trillion last year and continuing to swell. If compared to other economies, China' input in global growth makes a real difference. The United States touted as giant player struggled to achieve just 2.2 percent GDP growth in 2016. This shows that US just contributed 0.3 percent to overall world GDP growth.  A European economy with mere 0.2 percentage points and Japan with not more 0.1 percentage point to world growth stand exposed. So much so in comparison to China's standing with 73 percent total growth of BRICS' other partners' total GDP was around 3.2 percent 

U.S. investment bank Morgan Stanley's estimation that China's private consumer market will grow to 9.6 trillion U.S. dollars by 2030 and account for 47 percent of GDP is another feather in China cap helping it to qualify as supreme leader to impact international market. 

China-centric global growth is not far-fetched but fact-based reality. Even a slightest change in its policy leaves massive influence on world economies. At onset of 2016, the financial markets plummeted when China's Shanghai Stock Index sank 7 percent in one day. The stock markets in Europe, Asia and the United States suffered consequently 

The economic indicators like exports by 7.9 percent while imports by 16.7 percent, resulting in a trade surplus of US$51.4 billion and manufacturing purchasing managers' Index status at 51.3 in 2017 tell the world that China is making progress while maintaining stability. 

Since China is pivot of world economy and has played a key role in impacting global growth, world economies and political systems kept their eye glued on both two session (CPPCC and NPC) believed to be sole window to fathom China policy, its blue print, set targets, pragmatic roadmap and economic reforms. It also signifies the fact that China is more open than before to entire world to cherish shared fruits of progress. 

It created positive ripple when President Xi Jinping said that China will continue to open up in all respects, particularly in further liberalizing and facilitating trade and investment during a panel discussion with Shanghai lawmakers at the National People's Congress annual plenary session.

Along with China's economic supremacy, the internationalization of RMB touched new heights. Holding stable position as currency for international payment, its share reached to 1.69 percent. RMB as compared to dollar will be poising at 7.2by the end of 2017, says HSBC official. The rise of Chinese currency has helped China to phase out monopolies of US and EU in the world. Now China has convincing say in international market to deflect lopsided monetary policies once driven by US and Europe. 

The two sessions are source of many inspirations to entire world. They presented true pictures for those who really want to get rid of menace of unemployment, poverty and other turbulences. Due to introduction of new reforms, Chinese workforce is going to expand with fresh induction of over 11 million people in 2017. Out of them, 8 million will comprise of college graduates, 

Various countries including Pakistan need to get motivated with poverty alleviation drive running at full throttle in China. Pakistan government lawmaker in upper house Mushahid Ullah Khan said that Prime Minister Nawaz Sharif's policy-makers have been closely studying how did China lift 12 million people out of poverty with resolve to eliminate poverty by 2020? "If China can do so, why not us and we know being friend it may facilitate Pakistan to win over poverty," he opined

Corruption is proven menace in entire world. As China gears up to wipe out corruption both in public and private sector, all eyes are on its anti-corruption legislations. Fu Ying, spokeswoman of the Fifth Session of the 12th National People's Congress said "powerful national supervision law with amendments is in making and the fresh version is to be submitted to the NPC Standing Committee for review soon."

If one goes through two sessions with critical analysis, it becomes obvious that China will never give up efforts to achieve its consumer inflation target which is being set around a 3 percent in the Consumer Price Index (CPI) in comparison to 2 percent in CPI last year. 

Technological advancements from IT to agriculture remained pivot in two sessions. This is the weak area where China has been struggling to overcome. In this effort, Lei Jun, deputy to the National People's Congress (NPC), urged upon government to come up with heavy thrust on transforming Artificial Intelligence (AI) as he believed that it is future of a new technological revolution.

Feeling the deficiency, President Xi Jinping also presses hard on country's intellectuals saying China is undergoing a crucial year for meeting the goals of the 13th Five Year Plan and uplifting economy on modern lines they are tasked to transform China into a great scientific power. 

However critics believe that unless institutional barriers to innovation, including internet censorship and weak intellectual property protections remain as stumbling block innovation and entrepreneurship will stay sluggish staying away China to rise as innovation-driven economy by 2020. 

(The author is a senior investigative journalist working for The News International, Daily Times, Pakistan Today and Centerline Magazine in Pakistan)