Why China’s economy works

In 2017, Time magazine declared “China won” on its cover in both English and Chinese, labeling the country a giant catching up from behind in the global economic race.

In 2017, China’s total economic volume exceeded 80 trillion yuan, with a growth rate of 6.9 percent. It’s economy is still thriving among all major countries worldwide. About 13 million new urban jobs were created, with ten million rural residents lifted out of poverty. Such progress has added new momentum to the modernization of the country’s economy.

In 2017, China’s economy maintained growth within reasonable limits while improving stability. A number of key indicators hit new highs over recent years. The country’s annual GDP rose by 6.9 percent, which was the first time the growth rate was higher over the previous year since 2011. This shows that China has halted its economic slowdown over the past several years. The number of new jobs created in China’s cities totaled 13 million, with an unemployment rate of only 4.98 percent. The country’s CPI rose 1.6 percent over the past year, which was 0.4 percentage points down from that of the previous year but still better than expected. PPI rose 6.3 percent over the previous year, ending a decline of five consecutive years. Last year, China’s total import and export volume increased by 14.2 percent, hitting a new high over the past six years. The RMB exchange rate was basically stable, and the state’s foreign exchange reserves sat at around 3.14 trillion USD at the end of 2017.

Ning Jizhe, minister of China’s National Bureau of Statistics, revealed that over the past year, China’s economic output had increased by more than eight trillion yuan (1.2 trillion USD). This amount is equivalent to the fourteenth largest economy in the world in 2016. China’s contribution to world economic growth also rose dramatically, reaching 30 percent.

“China has become an important trading partner for more than 100 countries, and those countries account for 80 percent of the world’s total GDP,” explained David Lipton, the first vice president of International Monetary Fund (IMF). He went on to say, “China has become the centre of the global supply chain, and it is also a huge magnet for commodity exports and an important source of global demand.”

As its total economy exceeded 80 trillion yuan, China also strived to improve its economic quality and efficiency, as well as the quality of its overall supply systems. Over the past year, a number of hi-tech industries also made remarkable achievements. China’s intelligent manufacturing sector, which includes emerging strategic industries, the high-tech and equipment manufacturing industries, maintained a growth rate of over 10 percent. Online retail sales of commodities increased by 28 percent, and that of virtual goods grew even faster.

Last year, China sped up the elimination of backward and outdated production capacities, and the growth rate of six wasteful energy-intensive industries continued to decline. The annual production capacity of coal and steel achieved goals set while the production of minor smelters was completely phased out.

“In terms of the quality of economic growth, including micro quality, quality of goods, services and projects, are all improving,” said Ning Jizhe. He also explained that China’s economic growth was also reflected in the sustainable improvement of its environment. Last year, PM2.5 concentrations in 338 cities across China decreased, and the energy consumption per unit of GDP was cut by 3.7 percent, exceeding the 3.4 percent target set at the beginning of last year.

Why Chinas economy works

In 2017, Time magazine declared China won on its cover in both English and Chinese, labeling the country a giant catching up from behind in the global economic race. In 2017, Chinas total economic volume exceeded 80 trillion yuan, with a growth rate of 6.9 percent. Its economy is still thriving among all major countries worldwide. About 13 million new urban jobs were created, with ten million rural residents lifted out of poverty. Such progress has added new momentum to the modernization of the countrys economy. In 2017, Chinas economy maintained growth within reasonable limits while improving stability. A number of key indicators hit new highs over recent years. The countrys annual GDP rose by 6.9 percent, which was the first time the growth rate was higher over the previous year since 2011. This shows that China has halted its economic slowdown over the past several years. The number of new jobs created in Chinas cities totaled 13 million, with an unemployment rate of only 4.98 percent. The countrys CPI rose 1.6 percent over the past year, which was 0.4 percentage points down from that of the previous year but still better than expected. PPI rose 6.3 percent over the previous year, ending a decline of five consecutive years. Last year, Chinas total import and export volume increased by 14.2 percent, hitting a new high over the past six years. The RMB exchange rate was basically stable, and the states foreign exchange reserves sat at around 3.14 trillion USD at the end of 2017. Ning Jizhe, minister of Chinas National Bureau of Statistics, revealed that over the past year, Chinas economic output had increased by more than eight trillion yuan (1.2 trillion USD). This amount is equivalent to the fourteenth largest economy in the world in 2016. Chinas contribution to world economic growth also rose dramatically, reaching 30 percent. China has become an important trading partner for more than 100 countries, and those countries account for 80 percent of the worlds total GDP, explained David Lipton, the first vice president of International Monetary Fund (IMF). He went on to say, China has become the centre of the global supply chain, and it is also a huge magnet for commodity exports and an important source of global demand. As its total economy exceeded 80 trillion yuan, China also strived to improve its economic quality and efficiency, as well as the quality of its overall supply systems. Over the past year, a number of hi-tech industries also made remarkable achievements. Chinas intelligent manufacturing sector, which includes emerging strategic industries, the high-tech and equipment manufacturing industries, maintained a growth rate of over 10 percent. Online retail sales of commodities increased by 28 percent, and that of virtual goods grew even faster. Last year, China sped up the elimination of backward and outdated production capacities, and the growth rate of six wasteful energy-intensive industries continued to decline. The annual production capacity of coal and steel achieved goals set while the production of minor smelters was completely phased out. In terms of the quality of economic growth, including micro quality, quality of goods, services and projects, are all improving, said Ning Jizhe. He also explained that Chinas economic growth was also reflected in the sustainable improvement of its environment. Last year, PM2.5 concentrations in 338 cities across China decreased, and the energy consumption per unit of GDP was cut by 3.7 percent, exceeding the 3.4 percent target set at the beginning of last year.