By Ding Gang Source: CGTN Published: 2017-10-20
China’s National Bureau of Statistics released on Thursday the country’s latest economic data. During the first three quarters, China’s gross domestic product (GDP) grew by 6.9%, higher than the same period last year. Third quarter GDP rose by 6.8% and the nine consecutive quarters of economic growth hovered between 6.7%-6.9%, maintaining a high and stable growth.
The data shows that China’s economy has gradually stabilized and is shifting from second to third gear. It has also laid a solid foundation for further deepening reform and transformation.
China`s economy has been transitioning from rapid growth to high-quality development, General Secretary Xi Jinping said Wednesday.
The CPC has drawn up a two-stage development plan from 2020 to the middle of the 21st century to develop China into a "great modern socialist country."
In the first stage from 2020 to 2035, the CPC will build on the foundation created by the “moderately prosperous society” with a further 15 years of hard work to achieve “socialist modernization.”
In the second stage from 2035 to the middle of the 21st century, the CPC, building on having basically achieved modernization, will work hard for another 15 years to transform China into a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful.
These two goals reflect the dream and pursuit of the Chinese Communist Party and the Chinese people. The prerequisite for the realization of these two goals is to ensure steady economic growth.
Since 2010, the country’s economic growth has slowed down, declining for six consecutive years. China’s economy grew by 6.9% in 2015 and 6.7% in 2016. Since China adopted the reform and open-door policy about 40 years ago, this was the first time the country`s economic growth slowed down. The world is watching, wondering how and when China’s economy would steadily recover.
The economy has moved into a very critical stage from rapid growth to high quality growth. It`s very difficult to accelerate or to maintain speed. At present, the transformation of the economic structure is moving forward, increasingly met with challenges like unemployment. China must find new engines to power its growth.
A country is like a household. When facing economic difficulties, money saved must be used to stay afloat, while at the same time, a new job must be found to sustain it.
Many countries don’t have the ability to “find a new job” when faced with an economic crisis. It`s hard to change oneself. That’s why the result is always two steps forward, one step backward, even two steps backward.
China is different. First, in the past five years, China has focused on pushing forward the economic transition, and has discovered the solution.
Second, China’s economic growth now depends more on consumption, with potential purchasing power gradually forming a new driving force.
Third, China has arguably the most powerful manufacturing force in the world which is also extremely flexible. At the same time, the emerging Internet economy and other new industries, such as bicycle-sharing, online shopping and courier services have developed rapidly.
Finally, the most important thing is China has institutional advantages, namely national investment and support. The world is focused on the Party’s 19th National Congress because they realize that the Chinese Communist Party has the power, resources and intelligence to fulfill its dream.
The latest economic growth indicators have given those of us concerned with China greater confidence in the steady pace of its economy.
The author is a senior fellow with the Chongyang Institute for Financial Studies at Renmin University of China.