How should one look at the slowdown in China’s economic growth?
First, China’s economy is progressing steadily. It is still one of the fastest growing among the world’s major economies. China’s economy has crossed the $10-trillion threshold and is ranked second in the world. With the base figures increased, long-term high-speed economic growth has become unrealistic.
Second, we cannot judge an economy only on the basis of its growth. We have to consider factors such as whether the overall quality and structure of the economy has improved. In the first quarter of this year, China’s industrial and income distribution structure, energy efficiency and other aspects have seen positive changes. The share of the tertiary industry improved to 51.6 per cent in the first quarter, compared to 48.2 per cent in 2014; high-tech industries grew by 11.4 per cent; new energy vehicles increased by more than 50 per cent. The difference between urban and rural incomes was 2.61 times, 0.05 times smaller than last year. Energy consumption per unit of GDP fell by 5.6 per cent. Overall, China’s economy is developing smoothly and the quality of development is improving.
The size of the Chinese economy has also increased dramatically. Even 7 per cent growth amounts to $700 billion, which is equal to 11 per cent growth in 2010 and equivalent to a medium-sized country’s GDP. China’s economy can no longer go along the old path of high input, consumption and pollution. The slowdown is a result of proactive measures taken by the government to regulate the economy, which shows China’s economy has entered the state of a “new normal”. The gear of economic growth is shifting from high speed to medium-to-high, the growth model is transiting from investment-driven to innovation-driven and development is moving from low-to-medium to medium-to-high.
-- Indian Express