SCIO briefing on China's economic performance in 2019
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E-mail China.org.cn, January 21, 2020
Ta Kung Pao and Wen Wei Po:
We have noted that based on the Central Economic Work Conference, China's economy, which is securing stable and sound momentum, is expecting better development in the long run. And its course has in no way been changed. However, we have noticed, at the same time, that the rate of economic growth in China has been trending down over the past few years. In addition, the internal and external environments remain complicated. Therefore, Mr. Ning, how would you respond to such a situation?
Ning Jizhe:
Thank you for your good question indeed.
As I mentioned, China's economy has a stable and sound momentum and the trend for its continued development in the long run has remained unchanged. That mirrors the actual current situation and also predicts its future course. It is supported by a solid foundation and several strong conditions. I'll explain them to you in the following aspects.
First, this is a result of the Party's strong leadership and the institutional advantage of the socialism with Chinese characteristics, whose great asset is the centralized and unified leadership of the CPC. The socialism with Chinese characteristics combines socialism with a market-oriented economy, which could increase enthusiasm on all fronts, focus on major tasks, continuously unleash productive forces, and effectively confront different kinds of external impact. Looking back, we have already successfully coped with the Asian financial crisis in 1998 and the international financial crisis in 2008. In recent years, we have faced adverse effects caused by the complex and changeable economic environment at home and abroad, maintained sound and sustained economic development, and accumulated a rich experience in macro-economic regulation. Currently, with a low fiscal deficit ratio, abundant foreign exchange reserves, rich and high-quality property holdings, a stable debt level, adequate policy means and regulation tools for macro-economic regulation, as well as the active efforts of micro-economic entities, the Chinese economy is able to maintain stable growth and move toward high-quality development.
Second, it's a result of a solid material foundation. China has the largest grain output in the world, and we increase food crop production based on farmland management and the application of technology to always have control over our own food supply. China's industrial system covering extensive fields is independent, complete, and features a strong capacity for collaboration. Its output of more than 200 kinds of industrial products is the largest in the world. China's service sector continues to grow, serving the needs of agriculture, industry, and people's livelihoods, and has contributed to nearly 60% of the overall economic growth. The infrastructure in China has been improved, water conservancy systems, transportation, communication, energy, municipal administration, and environmental protection have been strengthened, while new types of infrastructure like network platforms have grown rapidly.
Third, there is huge potential in the hyper-scale market and domestic demand. China has a population of 1.4 billion, with the largest middle-income group and market in the world. Given the fluctuations in external demand, China's domestic demand, especially consumption, has been serving as a ballast in its economy. In 2019, domestic demand contributed to 89% of China's economic growth, of which the final consumption expenditure constituted 57.8%. The six major “happiness industries”, namely tourism, culture, sport, elderly care, health and education, have maintained strong momentum with huge potential. The key role of investment has been steadily leveraged, and a large number of effective investments are still needed to shore up points of weakness, address inadequacies, and improve people's living standards.
Fourth, China boasts substantial human resources and professional talentdividend. As we have introduced earlier, the working-age population of China stood at 896 million in 2019, which makes it the world's largest potential workforce. China's population of 775 million employed workers is also the world's largest. The number of migrant workers has reached 291 million, and is still increasing. More than 170 million people are high-quality professionals who have received higher or vocational education. In recent years, more than 8 million students graduate from universities each year, and the number of secondary vocational school graduates has reached over 4 million. As these high-quality professionals enter the labor market, they will inevitably become the intellectual support and provide strong human resources needed to promote high-quality development, as well as to build a modernized economy.
Fifth, the synergy of innovation-driven development has been unleashed. In recent years, we have implemented the new development philosophy, pooling talents and strength to support business startups and innovations by the general public. In 2019, there were about 20,000 newly-registered companies every day. The number of unicorn companies, gazelle companies and the world's top 500 companies is increasing in China every year. The number of patents per 10,000 people reached 13.3. We also saw a constant stream of major scientific and technological advances throughout the year: The Chang'e-4 lunar probe successfully landed on the far side of the moon; the Xuelong 2 icebreaker set sail on its maiden voyage to the Antarctic; the country's first self-developed aircraft carrier was commissioned; and the commercial applications of 5G technology are increasing. China ranked 14th in the Global Innovation Index, up 3 places from the previous year. The new drivers of growth as well as new industries have continued to develop. The value-added of high-tech manufacturing and strategic emerging industries grew by 8.8% and 8.4%. Online retail sales grew by 19.3%, and the digital economy, network economy, platform economy, sharing economy as well as the smart economy are booming in China. As long as we leverage our strengths, consolidate and build on what we have achieved, there will always be hope when facing the complex and changing economic situation. We will certainly be able to turn risks into opportunities and continue to forge ahead. Thank you.
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