Review of 2017 China’s Economy

The world’s second-largest economy is setting sail toward a new phase of development with Xi Jinping at the helm.

The Chinese economy will focus on quality, a shift from the rapid growth the country has been known for over the past decades since the reform and opening up policy was introduced.

At the country’s most important annual meeting on economic work, senior leaders said China’s economy will be characterized by more innovative manufacturing, a more secure financial system, a more open and green economy, more affordable housing and better life for the people.

To achieve the goal, Xi Jinping Thought on Socialist Economy with Chinese Characteristics for a New Era will be the key, said a statement released after the Central Economic Work Conference concluded.

Since the 18th CPC National Congress, historic achievements have been made, historic changes have happened in the party and the state as well as in economic development, providing an important material foundation for historic changes in other fields, Xi said.

The extraordinary economic growth during the past five years proved that the judgements, decisions and adjustments made in economic development by the Central Committee of the CPC were correct.

Members of non-Communist parties, All-China Federation of Industry and Commerce and those without party affiliations have submitted more than 80 opinions and suggestions during the past year, covering important topics including the Belt and Road Initiative as well as improvement of the real economy.

Xi said he hopes they can also contribute to the goals and tasks set at the 19th CPC National Congress, carry out deep investigations and research, and provide advice to resolve conflicts while also improving themselves.

Let’s see how the Chinese leaders review the economic performance in 2017.

China’s Economy is Firming

With its GDP expanding 6.9 percent year on year in the first three quarters, and 6.8 percent in the third quarter, the ninth straight quarter for China to see economic growth of at least 6.7 percent, all adding to evidence the economy is on a steady footing.

The World Bank on Tuesday raised its forecast for China’s economic growth in 2017 to 6.8 percent, up from the 6.7 percent it projected in October, citing stronger personal consumption and foreign trade.

The meeting for the first time put forward the idea of Xi Jinping Thought on Socialist Economy with Chinese Characteristics for a New Era, which mainly focuses on a new development concept and stresses the Party’s leadership in economic management, people-oriented development, the new economic normal, the market’s role in resource distribution and supply-side structural reform.

The thought is the “theoretical crystallization” of the past five years of practice in pushing forward China’s economic development, and the “latest fruit” of socialist political economy with Chinese characteristics, according to a statement released after the meeting.

Those at the meeting decided that high-quality development is the “indispensable foundation for sustainable and healthy economic development”. Apart from efficient economic growth, analysts said, high-quality development also entails balanced social and environmentally friendly development.

Fight the Air Pollution

China has made historic economic achievements in the past five years, now with the largest middle-income population in the world, said a statement issued after the Central Economic Work Conference which ended Wednesday.

Since the 18th National Congress of the Communist Party of China (CPC) in 2012, the Chinese public has shared a growing sense of gain and happiness, and more people have equitable access to basic public services, according to the statement.

Decisive progress has been made in China’s fight against poverty, while notable achievements have been seen in controlling air, water and soil pollution.

China’s economy grew at an average speed of 7.1 percent during the period, becoming a growth engine and stabilizer for the world economy.

The country has been pushing supply-side structural reform to promote a balance between demand and supply.

It has also been steadily increasing reform in the economic system, adding vitality and resilience to the economy.

Historic achievements and reforms in the economic realm have provided important conditions for reform and development in other areas, the statement said.

The country will continue to improve people’s livelihoods, implementing tailored measures to tackle issues such as structural imbalance in employment and difficulties in receiving medical treatment, according to the statement.

Poverty Alleviation

China has set 2020 as the target year to finish building a moderately prosperous society and completely eradicate poverty. To realize the goal, risk prevention, poverty alleviation and pollution control have all been high on the government’s agenda.

China has lifted more than 60 million people out of poverty in the past five years, with the poverty rate dropping from 10.2 percent to less than 4 percent. As of the end of 2016, there were 43.35 million Chinese living below the national poverty line.

In the first ten months of 2017, China’s banking regulatory authorities imposed administrative penalties in 2,617 cases of irregularities in the industry, covering state-owned banks, joint-equity banks and city commercial banks.

The Communist Party of China (CPC) has also incorporated “Beautiful China” into its two-stage development plan for building a great modern socialist country, according to the report delivered at the 19th CPC National Congress in October.

The government has passed its toughest-ever environmental protection law, and introduced a “river chief” system to protect water resources. Ecological “red lines” will also be drawn in certain regions to strengthen environmental protection, according to earlier planning.

Source: ChinaDaily, Xinhua