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    China'S Economic Fundamentals Have Not Changed. Data Speak Louder Than Words.

    2015/10/5 16:12:00 36

    China'S EconomyFundamentals And Economic Data

    "Data is better than eloquence".

    In the first half of this year, China's economy grew by 7%, and it was hard to come by in the complicated and changeable environment of the world's overall economic situation.

    In horizontal comparison, in the two quarter, the US GDP grew by 2.3%, the UK increased by 2.6%, and Korea increased by 2.2%; in the first quarter, the euro area grew by 1% and Japan decreased by 0.9%.

    Looking at developing economies, India grew by 7.5% in the first quarter, 2.1% in South Africa, 2.2% in Russia, and 1.6% in Brazil.

    Vertically, the growth rate of 7% in the first quarter is in line with the expected target. Under the new normal, the growth rate of "7%" is completely in a "reasonable interval".

    Although the growth rate dropped by 0.4 percentage points over the same period last year, it is in line with the general rule of typical economies that China's economic growth has entered the new normal.

    As Liu Shijin, former deputy director of the development research center of the State Council, said in an interview with China economic net reporter, we should not simply look at the speed. The key depends on the conditions. Now the whole development environment has changed a lot, and the realization of 7% is much more difficult than the past 10%.

    Wang Baoan, the head of the National Bureau of statistics, analyzed and interpreted the economic data in the first half of the year, saying that China's economic operation showed a good momentum of "slowing down, stabilizing, and stabilizing". The fundamentals of China's economy have not changed. China's economic market is broad, with huge room for maneuver and strong resilience.

    Fundamentals, policy effects, institutional mechanisms, regional synergy and confidence in development will continue to "sustain" the trend of China's sustained economic development.

    Zhang Yu, Dean of the school of economics, Renmin University of China, wrote in the Economic Daily that over the past 30 years, China's economy has been developing rapidly in twists and turns. The total economic growth has increased by more than 100 times, leapt to the second place in the world, and the per capita GDP has also entered the ranks of the upper middle income countries from the low income countries. The living standards of the people have continuously improved and the comprehensive national strength has been greatly improved.

    More striking and thought-provoking, during this period, Japan experienced twenty years of economic stagnation. Africa and Latin America experienced twenty years of development lost, and the economies of Eastern Europe and the former Soviet Union experienced ten years of loss.

    The western developed countries' economy has also experienced the golden period of growth in the 50s and 60s of last century. Since 70s, it has been in a predicament of continuous crisis and weak growth.

    Especially after the severe financial crisis in 2008, the economy continued to slump and prosperity was far from being expected.

    The sharp contrast between the two sides shows that the influence and attraction of Chinese road are increasing day by day.

    Xi Jinping pointed out that China's new industrialization, information technology, urbanization and agricultural modernization continued to advance, with high savings rate, huge potential for consumption, hard work for the people, high proportion of middle income earners, strong development momentum in the service sector, great market space and potential.

    Economist Yifu Lin is a famous Chinese economic optimist.

    At the first press conference of the CPPCC in March 6, 2015, Yifu Lin reiterated that his expectations for China's economic growth had not been adjusted: China still had the potential of 8% growth in 20 years.

    There is a difference between "growth potential" and "real growth". It refers to the potential development space and capacity of China's economy.

    Yifu Lin believes that China's economy has a strong backwardness and strong momentum of development.

    Transformation and upgrading

    It can be expected that the full investment potential, huge consumption potential and external economic pressure will add momentum to China's economic growth.

    Li Wei, director of the development research center of the State Council, believes that China is still a huge developing country in terms of supply and demand.

    First of all, China's pformation from a big manufacturing country to a strong manufacturing country is full of new opportunities for industrial development. Secondly, the promotion of high quality urbanization will create huge investment demand. In addition, promoting the balanced development of regional economy and the further improvement of residents' income level will bring about the growth of investment and consumption demand and contain huge consumption demand.

    Li Wei said that as long as we unswervingly deepen reform and open wider to the outside world and unswervingly create a fair, pparent, standardized, orderly and legal market competition environment, truly play the decisive role of the market in resource allocation and better play the role of the government, we will be able to pform the huge development space and strong growth momentum into a powerful reality.

    productivity

    Leading the new normal and pushing China's economic development towards a higher stage.

    Deepening the reform in an all-round way is enhancing the motive force of the whole society.

    Since the third Plenary Session of the 18th CPC Central Committee, China has launched a series of major reform measures.

    Since the beginning of this year, Xi Jinping has held eight meetings of the central leading group for deepening the reform, and has launched more than 70 key reform plans, identified 100 key reforms, and continued to introduce a number of major economic reform initiatives.

    In terms of economic restructuring, the State Council cancelled and devolved a large number of administrative examination and approval items, abolished and pferred all non administrative examination and approval items, relaxed the investment access field, expanded the market independent production and operation space of the market entities, and stimulated the market vitality.

    A few days ago, the Central Committee promulgated the "top-level design" plan for the reform of state-owned enterprises, and the reform of fiscal and taxation system and financial system will also continue to deepen. The dividends of comprehensive deepening reform will gradually emerge in the future.

    "Mass entrepreneurship and innovation" stirred up China's land.

    Since last year, the state has promulgated a number of policies and measures to promote "mass entrepreneurship and innovation".

    Not long ago, the State Council issued the "opinions on vigorously promoting the policy of public entrepreneurship and innovation", which will ignite more "engines" and inject strong new impetus to economic growth.

    With the continuous promotion of the strategy of "mass entrepreneurship and innovation", the most direct feeling of the society is that there are many new stories and new stories in the media, and this is the best era for entrepreneurs.

    According to the National Bureau of statistics, the number of newly registered enterprises increased by nearly 20% in the first half of this year compared with the same period last year. Registered capital (gold) was 12 trillion yuan, an increase of 43%, and the total number of newly registered enterprises was more than 10 thousand per day.


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