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China won’t allow economy to nosedive

Liu Xinyong
Updated: Mar 5,2015 3:32 PM     Xinhua

BEIJING — China’s 2015 economic growth target was lowered to around 7 percent — a level not seen since 2004 — in a government work report delivered by Premier Li Keqiang on March 5.

The slight kickdown has attracted global attention, as China is the world’s second largest economy, the leading recipient of foreign direct investment and the biggest trade partner of more than 120 countries and regions.

The announcement has been ideal fodder for media sensation. Some stubbornly argue that China’s economy is losing steam and growth may plunge to 6 or even 5 percent, spelling disaster for both the Chinese and world economies. Think about it: China’s iron ore imports are greater than those of all other countries combined.

Like playing chess, green hands can only see a couple steps ahead, while a master will see far beyond before making any moves. For those who stand higher, look farther and are open-minded, it is not hard to conclude that it is impossible for China’s economy to nosedive because the Chinese government won’t let it happen.

The truth is, the adjustment of China’s growth forecast is not the end of the world, but rather a rational decision based on understanding of complicated situations at home and abroad and a move to suit the “new normal” that China faces.

The ultimate goal of the adjustment is to maintain steady and healthy growth, help deepen reforms, improve people’s well-being, and allow the world to share the benefits of China’s development.

Looking one step further, China’s economy still enjoys sound fundamentals with no possibility of any hard landing. Though China’s 2014 growth rate of 7.4 percent was the lowest in 24 years, it far outpaced 2.4 percent for the United States, 0.9 percent for the eurozone and a paltry 0.04 percent for Japan.

China’s economy topped $10 trillion for the first time last year, with the year-on-year increase in gross domestic output higher than Turkey’s economy.

Yes, China has geared down to medium-high growth, but it is taking firm strides forward toward high-quality, efficient growth. Driven by the new engine of entrepreneurship and innovation, as well as the traditional engine of public products and services, China’s growth will become even steadier.

The starting point of the socialist state is serving its people. The Chinese government is obliged to provide people with better education, stable work, higher salary, better social security and medical care, comfortable living conditions and a pleasant environment.

Adequate resources are the foundation for realizing any of these objectives. Without relatively fast growth, the goals might end up being empty promises.

The Communist Party of China has gained tonnes of experience in guiding the large nation’s economic development in past decades. Its mission is to lead the people in achieving the great rejuvenation of the Chinese nation.

During this process, China needs to build a moderately prosperous society, deepen reforms, advance the rule of law and strictly govern the Party, which are all closely linked to and guaranteed by reasonable economic growth.

As a responsible and open country, China is willing to share the benefits of its own development. This philosophy of mutual benefit serves as a strong driver of world growth.

For decades, “Made in China” products have flooded global markets and brought benefits to people in every corner of the world. China is also an active advocate for multilateral efforts such as the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

To honor all those commitments, China will not allow its economy to go into a free fall.

China’s economy is not on the edge of a cliff, but at a new starting point. It has not left a golden period, but is embracing new opportunities. Those who have hopped on China’s fast train will gain endless benefits.

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