Beijing and Tianjin are seen in a nighttime satellite photograph.
The Chinese economy is experiencing a faster growth speed than general official data initially revealed, according to three American economic analysts.
Their conclusion is based on a theory that a positive correlation exists between nighttime lights and economic activities.
The difference between their analysis and official data could result from underestimated growth speed of China’s emerging businesses, analysts pointed out. In recent years, the Chinese service industry has been experiencing a sharp growth thanks to enhanced efforts from administrative reform, commercial system reform and mass entrepreneurship and innovation.
In the 2017 government work report, Premier Li Keqiang emphasized the key role of consumption in stimulating economic growth and said the service industry’s value added has largely increased and accounted for 51.6 percent of last year’s GDP.
First quarter economic data released by the National Bureau of Statistics shows consumption remained a central component, contributing 77.2 percent of economic growth, and the service industry was a big contributor to GDP, accounting for 56.5 percent. Meanwhile, the growth rate of GDP in the first quarter reached 6.9 percent, achieving the second consecutive growth increase.
According to Bloomberg News, China’s economy, driven by consumption, achieved two consecutive speedy expansions and Chinese consumers are helping the country’s economy break its reliance on investment-driven growth.
The New York Times also analyzed that a significant reason for the economic growth in China is the expansion of factory scales and production since the value-added industrial output expanded 7.6 percent in March.
American business magazine Forbes pointed out China’s first quarter GDP growth rate was beyond expectations, which indicates China’s economic success will not end but is entering another phase. The economy will be supported by four pillars in the second phase, including “super consumers”, sci-tech innovation, high-end manufacturing and service industry.
The overseas observation is in line with Premier Li’s judgment of the Chinese economy. The rise of emerging industries and accelerating upgrades as well as the transformation of traditional industries are turning into new engines which stimulate economic growth.
Reuters reported China’s optimistic economic data is a relief to global investors who were concerned about the world economy’s stability, which stabilizes the global asset market.
According to a report from A.T. Kearney, a global consulting firm, a survey collected from 300 companies with over $500 million in revenue shows the confidence of direct foreign investment into China ranked at the top of the list.
In addition, the International Monetary Fund (IMF) adjusted its expected Chinese economic growth rate from 6.5 percent to the current 6.6 percent, which is expected to be raised further by the IMF in the coming months.