Chinese Miracle of Economic Development

This year marks the 70th anniversary of the founding of the People’s Republic of China. Under the leadership of the...

Strengthening Long-range Vision

This is a testing period in the history of China’s economy, but the Chinese government is facing it thoughtfully, maturely and with much foresight. At a meeting in January, Chinese President Xi Jinping had alerted the nation that China faces major risks on many fronts. In spite of these risks, however, China is not deviating from its chosen path of reform and opening up, as clarified in the government work report delivered by Premier Li Keqiang to the 13th National People’s Congress, China’s national legislature, during the ongoing “two sessions” in Beijing. He has done well to reassure foreign businesses and investors that China “will strengthen efforts to protect foreign investors’ legitimate rights and interests.” While mentioning several concrete steps to stabilize and de-risk the economy, he also made clear that China is now consciously pursuing the goal of achieving greater qualitative growth, as opposed to merely quantitative growth. Thus, it has set its GDP growth target for this year at 6-6.5 percent, which reflects its determination to achieve higher-quality and sustainable development, in which people’s welfare, poverty eradication, employment creation and environmental protection take precedence over increase in abstract economic numbers. The raising of the fiscal deficit target to 2.8 percent of GDP from 2.6 percent in 2018 is aimed at releasing more funds for well-targeted growth. It should, […]