China injects confidence, vitality into global economy

“What’s this year’s big issue? The economy.” The key topic Bloomberg has captured from the annual sessions of China’s National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) National Committee, referred to as the “two sessions”, is the observation of many foreign media and represents foreign media’s expectation for the two sessions. What economic goals China will set for the year, will the country adjust its fiscal and monetary policies, what does the new foreign investment law mean, and how will China develop artificial intelligence technology are drawing great attention of media from across the globe. While the global economy is faced with downward pressure, the Chinese economy is growing rapidly and steadily. Such momentum is precious and has become the light of confidence and vitality for the development of the world economy. “China represents enormous long-term opportunity,” said an article published on Forbes in January. Indeed, the continuous progress of China’s overall economic strength has always been the result of the general trend.

In 2018, the Chinese economy expanded to over 90 trillion yuan (about $13.43 trillion), making the country second largest economy in the world. Meanwhile, its total volume of foreign trade exceeded 30 trillion yuan(about $4.48 trillion) for the first time, ranking first in the world. Last year, China’s economy grew by $1.4 trillion, up 6.6 percent from the previous year. The country contributed nearly 30 percent of the global economic growth, becoming the biggest contributor to global growth for years. With clear direction and firm steps, China has set out on its journey to a stage of a high-quality development, which, to the world, is a journey based on confidence, and a journey about continuous inspiration and the building of confidence. This confidence comes from China’s accurate forecasts of the current situation and its correct policies and measures taken to cope with the situation.

China has sufficient policy tools to guarantee the smooth running of its economy, said an economic affairs officer with the United Nations Conference on Trade and Development (UNCTAD). The annual Central Economic Work Conference held last December released a series of important signals. It was praised by foreign media for showing China’s capability to respond to challenges while boosting the economy. While applauding achievements, China also noticed changes and concerns that came along with the steady economic development and decided to continue the proactive fiscal policy and prudent monetary policy while adhering unswervingly to the core task of supply-side structural reform. The international community is to a large extent observing the secret behind China’s economic governance via paying great attention to the two sessions. This confidence originates from China’s courage in deepening reform and its capability to carry out transformation and upgrading.

China’s great capacity for transformation is one of the most important advantages of its economy, said a foreign economist. This comment can be regarded as a footnote to China’s economy. From concentrating efforts on improving the business environment to cultivating and developing new growth drivers and facilitating the formation of a strong domestic market, and to promoting poverty alleviation and rural revitalization, China is endeavoring to develop a multi-dimensional space for economic growth. It was pointed out in the UN report titled World Economic Situation and Prospects 2019 that China’s holistic structural reforms “generate a positive impact on economic growth, exports and imports, and welfare gains in the Asia-Pacific economies.”

Sue Duke, Vice President, Head of Global Public Policy and Economic Graph Team at LinkedIn is full of expectations on the Chinese market and regards China as one of the best places to start a company in the world after seeing China’s economic digital transformation driven by such factors as big data, “Internet plus”, and artificial intelligence. The confidence also stems from China’s determination and actions to open itself to the world. China is making increasingly greater efforts to open its market to the world. The draft foreign investment law, which is scheduled to be deliberated at the two sessions, has caught the attention of the whole world prior to the convening of the “two sessions”. Once adopted, the law will bring about fundamental reform of China’s foreign investment management system and is expected to help improve the openness, transparency, and predictability of investment environment and provide better legal protection for boosting the formation of a new pattern of all-round opening up.

Alex Dimitrief, former Senior Vice President of General Electric expressed that the policy of the Chinese government on continuing reform and opening up has given them reassurance that they can keep digging deep into the Chinese market. Michele Geraci, the Undersecretary of State at the Italian Ministry of Economic Development, said in the coming years, China will be one of the most important variables for the Italian economy. Such a remark reflects the fact that the international community is optimistic about China’s prospects and believes in Chinese opportunities. The world has reasons to expect that with China’s constant efforts to deepen reform, promote opening up, and continuously release development potentials, Chinese economy can inject greater confidence and stronger impetus into the development of global economy.

By Zhong Sheng

Source: People’s Daily