The Chinese Economy has made progress while maintaining stability in the face of new challenges and difficulties in the year 2019.
The nation’s stable economic performance this year was made amid some changes and worries, as the external environment was complex and severe, and the economy was under downward pressure.
Under the strong leadership of the Central Committee of the Communist Party of China with President Xi Jinping at its core, the Chinese economy performed well despite new challenges and difficulties while maintaining stability.
The country carried out new development concept, focused on the supply-side structural reform to promote the high-quality economic development, and with great resilience and vitality maintained the sustainable and healthy economic and social development.
At the end of the year, the International Monetary Fund and the World Bank both forecast China’s annual economic growth of more than 6 percent in 2019.
“We have kept the economic growth within a reasonable range, raised our economic scale and strength to a new level, upgraded the industrial structure to a medium-high level, and created a growing momentum for innovation,” said Wang Changlin, Executive Vice President of the Academy of Macroeconomic Research of the National Development and Reform Commission.
In this year’s complex situations with obviously rising risks and challenges at home and abroad, it was particularly difficult to achieve stability.
Internationally, the recovery of the world’s major economies is losing momentum with slowing down growth. Trade frictions provoked by the United States have brought great uncertainty to the global economy and cast a shadow over the world economic outlook.
Domestically, investment is falling, accompanied by much change in foreign trade, and the huge manufacturing sector is at the critical moment of structural upgrading and the shift from old growth drivers to new ones.
In order to cope with these challenges, China set up the general principle of pursuing progress while ensuring stability for this year at the end of 2018.
In the first three quarters of this year, 1.78 trillion yuan (about 252 billion U.S. dollars) was cut in taxes and fees nationwide. It is estimated that the total amount of tax cuts and fee reductions for the year will reach 2.3 trillion yuan (about 327 billion U.S. dollars). This has not only reduced the burdens on enterprises and individuals, but also expanded domestic consumption demand and stabilised expectations.
“Our company can save about 10 million yuan (about 1.42 million U.S. dollars) of value-added tax in the whole year,” said Mei Hao, Financial Manager of the Zhejiang Boen Biotechnology Co. Ltd.
Meanwhile, China has made efforts to guard against financial risks and offered solutions to private enterprises’ financing problems while maintaining reasonably abundant liquidity of its monetary policy.
According to the report released by the World Bank in October, China ranks 31st in the world in the ease of doing business with a score of 77.9 out of 100, up from the 46th place the previous year. China is in the top 10 improver list in the Doing Business report for the second consecutive year.
Up to now, China’s inbound foreign investment reached a total of 2.1 trillion U.S. dollars, making it the largest recipient of foreign investment among developing countries for 27 consecutive years.
Now every percentage point of economic growth in China can generate about 2 million jobs. In the first 10 months of this year, 11.93 million new urban jobs were created, exceeding the annual target ahead of schedule.
While the global trade shrank in 2019, China’s foreign trade remained stable with improvement despite the trade frictions. The value of imports and exports in the first 11 months rose by 2.4 percent year-on-year.
The success with the Second China International Import Expo (CIIE) has helped expand the country’s foreign trade “circle of friends”. China’s trade with the EU, ASEAN and other Belt & Road Countries has also been eye-catching.
The latest figures from the World Trade Organisation (WTO) show that China’s share of the world’s total foreign trade in the first seven months increased by 0.1 percentage point year on year, and China remains the world’s largest trading country in goods, underscoring the resilience of China’s foreign trade.
“The second largest economy of the world is showing that it wants to integrate more, that it wants to establish partnerships and linkages with other players. That I think is very laudable and welcome, particularly into this environment, the global economy is slowing down, this economy is going to be more efficient,” said Roberto Azevedo, Director General of the WTO.
The Chinese Economy has shown great resilience and vigour in the face of difficulties and challenges. Embarking on high-quality development, the Chinese economy will embrace a bright future.