China becoming indispensable, integral part of global economy

2017-10-19
english.gov.cn/Economic Daily

The enormous resilience and potential manifested in China’s economic transformation is gradually receiving international recognition. Global economic development calls for China’s fair share, as the bond between China and the rest of the world gets stronger than ever before.

The People’s Bank of China’s policy of targeted cuts to required reserve ratios for inclusive finance system from 2018 onward enabled an immediate 5-percent rise in Hong Kong’s stock market. This ushered in the H-share’s peak over the past two years.

The Wall Street Journal said this move clarifies that China’s monetary policy retains its overall orientation toward stability and neutrality with each index on course to continuing economic resilience. Financial Times added that this policy acts as a catalyst for structural reform.

China’s spot-on regulation and control of currency also significantly underpins its macroeconomic fundamentals. According to statistical analysis, the manufacturing purchasing managers’ index (PMI) in September bounced back to an unanticipated extent. In the meantime, the constant growth of data on China’s foreign currency reserves also rises beyond the public’s expectation.

China has been making persistent efforts to promote economic transformation and implementing supply-side structural reform over the past few years. The advance of overcapacity-cutting drove GDP to 74 trillion yuan ($11.2 trillion) in 2016, 1.32 times its 2012 numbers.

In addition to the aforementioned quantitative growth, China’s economy also managed qualitative increases. With regard to industrial structure, there remains a 10-percent growth in high-tech industries, strategic emerging industries, and equipment manufacturing, reflecting the accelerating growth of new economic drivers. As for inbound and outbound demands, consumption has emerged as the main driving force for economic growth.

The Belt and Road Initiative is demonstrating its driving effect for both China’s and global economies. The conversion from “a flat world” to “an interconnected world” will enable broader and more balanced flow of economic elements worldwide and immensely brightens up the future of the global economy.

Currently, China’s economy is running robustly and expects favorable prospects with widespread international recognition. The latest issue of IMF World Economic Outlook raised China’s growth forecast for this year and next by 0.1 percent from July. Being the fourth uptick this year, it demonstrates that China’s economy has IMF’s confidence as well as a solidifying international influence.