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China still key engine to power global growth

Updated: Sep 12,2015 5:03 PM     Xinhua

BEIJING — Premier Li Keqiang said at the Summer Davos meeting on Sept 10 that China’s economy remains a source of global growth, and his confidence is not “blind optimism.”

China contributed roughly 30 percent to world economic growth during the first half of this year with a growth rate of 7 percent, which is among the highest for major economies.

The IMF predicted China’s GDP growth to be about 3.2 times that of developing countries and 1.6 times that of emerging markets in 2015.

GDP growth of 7 percent will expand the economy by over $800 billion, a considerable contribution to the global economy.

As the world’s largest commodity trade country and the largest trade partner of more than 120 countries and regions, China’s stable demand for energy, raw materials and high-tech products has fed both developing and developed exporters amid weak global growth.

In the first eight months, China’s imports of refined oil and crude oil increased 4.1 percent and 9.8 percent year-on-year, respectively, despite the fact that foreign trade slipped 7.7 percent.

Meanwhile, China’s rapidly growing outbound direct investment (ODI) has fueled global economic growth via infrastructure development, especially in developing countries.

China’s non-financial ODI rose sharply in the first seven months of 2015, thanks to fewer government restrictions and strong growth in the United States and countries in the Belt and Road regional infrastructure and trade network.

The country’s ongoing urbanization, which stands at less than 40 percent and is a far cry from the average of over 70 percent in developed countries, will unleash huge domestic demand in infrastructure development and consumption.

The growing demand for better products and services and an appetite for travel from the increasingly affluent Chinese contributed to the economies of tourism-intensive countries.

Last year, more than 100 million people traveled abroad and the number of visitors rose 10 percent in the first six months of this year. And wherever the Chinese go, they shop. Thailand predicted Chinese tourists will bring them about 62 billion yuan in tourism revenue this year.

Overall, the Chinese economy is resilient with potential for robust development. The new drivers are gaining steam, and the world’s second largest economy will continue to power global growth.