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Economic Performance Is Full of Resilience, Reforms in Key Areas Are Boosted

InternationalOrganizations Speak Highly of China’s Economic Performance

  

 “It’s like a rangewhen you look at the mountain from the front, but it’s like a peak when you lookat it sideways. The mountain shows its different features in different levelsnear and far.” This well-known verse implies that we must have a broader visionto get a correct understanding of things. The same is true when looking atcurrent Chinese economy. Recently, a number of international organizations haveissued reports and statements and said that “resilience”, “reform”, “risk”, “stability”and “confidence” have become the key words to depict Chinese economy.

Vitality and Potential Are Released Continuously

 “The Chineseeconomy is still maintaining a strong development trend.” That is the firstline in China Economic Update issuedrecently by the World Bank.

The report pointed out that consumption continued to playan important role in China’s economic growth. According to the latest data fromNational Bureau of Statistics, the total retail sales of consumer goodsexceeded 3 trillion CNY in a single month for the first time this year in Maywith a year-on-year growth of 8.5%. From January to May, China’s online retailsales reached 3.2691 trillion CNY with a substantial increase of 30.7%.

What shows a rapid growth not only is the retail salesbut also involves goods concerning consumption upgrading. In the context ofChina’s announcement of a series of tariff cuts on imported consumer goods, thevitality and potential of consumption are gushing out.

 “We welcome China’smore decisive shift of policy priorities from high-speed growth to high-qualitydevelopment.” said IMF First Deputy Managing Director David Lipton in thestatement after the consultation on Clause Four of IMF at the end of May. Thestatement said that the transfer from over-investment to consumption,especially, will keep the continuous growth of economy, improve people’s livingstandards, create a cleaner environment and significantly reduce risks.

It is mentioned in World Bank’s report that althoughsoftware and IT services doesn’t account for a high proportion in China’s GDP,they are rapidly growing and their contribution to GDP is “significantlyincreasing”.

The industry’s electricity consumption confirms thattrend. In the first five months, the electricity consumption of the tertiaryindustry increased at a double-digit pace. The electricity consumption of theindustry of software and information technology services grew by 66.05%year-on-year; that of the industry of internet and related services grew by63.26% year-on-year, out of which internet data service industry’s electricityconsumption grew by 207.06%. 

 “Emerging serviceindustry has driven the rapid growth of electricity consumption, both inindustries and products, reflecting the good momentum of acceleratedtransformation of economy.” said Deputy Director Niu Li from EconomicProjection Department of the State Information Center.

Reform and Opening-up Keep Playing Their Roles

Before the Dragon Boat Festival, there were a lot ofpeople in the Comprehensive Service Hall of Dalian Area of Liaoning Pilot FreeTrade Zone. At the entrance of the hall, a huge electronic screen drew thereporter’s attention.

 “WeChat NameVerification”, “Number Call”, “Examination & Approval” and “CertificateAcquisition” — the data under these four columns are constantly flashing on thescreen.

 “Are you somewhatconfused why the numbers are going but you didn’t hear the sound of the numbercall?” Seeing the reporter’s doubtful expression, the person in charge of theservice hall Zhao Yinghu said, “This is called ‘silent call’, which means wegive a point-to-point reminder to people using WeChat or short messages.”

The Key to Reform Lies in Implementation, And the Key toImplementation Lies in Details.

Wang Zhaonan, a staff member of the service hall, toldthe reporter that Dalian Area of Liaoning Pilot Free Trade Zone not only learnedfrom other anterior pilot free trade zones but also boldly explored andinnovated. Dalian Area made full use of internet technology to make the “onlineservice hall” bigger and bigger and enterprises free from worry.

Liaoning Pilot Free Trade Zone is a footnote of China’sreform and opening-up. Since the beginning of this year, a series of measuresfor deepening reform and expanding opening-up have been successively launched,adding a new drive to the stability of China’s economic ship:

— The reform of “streamline administration and delegatemore powers to lower-level governments and to society in general whileimproving regulation and optimizing service” is deepened and the level ofinvestment facilitation is improved. For example, the authority for foreigncapital examination and approval is further delegated to lower-levelgovernments, the facilitation for foreign-invested enterprises to use funds isimproved, and the convenience for foreigners to work in or travel to China isenhanced.

— New tax authorities hang out their shingles uniformly.State Administration of Taxation and Local Administration of Taxation of allprovinces and municipalities with independent planning status of China formallymerged into one on June 15, which is a periodical critical step of the reformof the collection and management system for state taxation and local taxation.

— The control over market access is further relaxed andthe level of investment liberalization is improved. For example, the opening-upof the financial industry is steadily expanded, and the system of qualifiedforeign investors is improved; the opening-up of the service industry iscontinuously promoted and the opening-up of agriculture, mining industry andmanufacturing industry is deepened.

 “China has madeprogress in the reforms in some key areas.” Lipton said, “Financial sector has acceleratedthe implementation of their work to reduce risks and has taken decisivemeasures in a wide range of areas; the growth of credit and loan has beenlowered; new progress has been made in the reduction of excess capacity; morework has been done in pollution control; the opening-up process is advancingcontinuously. ”

Repair the Roof While It is Sunny.

As a responsible world power and world’s second largest economy,the trend of China’s economic development affects the world’s nerves.

Looking from the outside, the anti-globalization trend ofthought and protectionist sentiment are warming up, adding to the risks anduncertainties in world’s economy. Looking from the inside, China’s principalsocial contradiction has transformed into the contradiction between unbalancedand inadequate development and the people’s ever-growing needs for a betterlife.

Under the background of stable economy and steadyprogress, how can we deal with risks and challenges? How can we meet the people’sever-growing needs for a better life? International organizations unanimouslybelieve that China should “repair the roof while it is sunny”. Economic re-balancingis likely to mean that the overall growth has slowed down, which, however, weshould not resist. We should resolutely implement the stated policy intentions,focus on high-quality development and continuously improve people’slivelihood. 

Under the stars at midsummer night, people who live inthe small town of Chongren in middle China like walking along the river toenjoy the cool fresh air after dinner. But this is hard to imagine in the past.From illegal sand mining in the river and garbage piles on the riverside togreen grass and clean pathways on both river banks, the change of ChongrenRiver is an epitome of the “one river two banks” modification project of FuzhouJiangxi. “To fight the three major battles and realize high-qualitydevelopment, in the end, is to enhance people’s sense of gain and happiness.”said the relevant person in charge of Fuzhou Municipal Party Committee.

Lipton said that in view of China’s successful reform inthe past decades and Chinese Government’s firm commitment and determination IMFbelieved that China could achieve economic re-balancingand shift to a sustainable development mode.

The World Bank pointed out in its report that althoughChina’s investment growth slowed down in the short term, “from the perspectiveof international and historical comparison China’s investment growth is stillrobust,” and China should focus on the improvement of investment allocation andinvestment efficiency. Director of Development Projection Bureau of World BankAyhan Kose said, “As long as China continues to deepen its reforms, we believethat China absolutely has sufficient ‘ammunition’ to deal with various risksand challenges.”

Source: Liaoning Daily