China's development brings six major opportunities to the world
For many years, China's economic growth has been the source of power and the anchor of stability for global economic growth. The vast market space of nearly 1.4 billion people, hundreds of millions of people traveling abroad, and foreign direct investment of up to 100 billion U.S. dollars have provided countries with good market opportunities and investment opportunities, and created a large number of employment opportunities.
Niu Li, deputy director of the Economic Forecasting Department of the State Information Center, said that the steady growth of China's economy is the main driving force and stabilizer of world economic growth. China's economic growth has injected strong impetus into the recovery of the world economy.
In 2017, China's economic aggregate was approximately 12.25 trillion U.S. dollars, and the economic growth achieved in the past year exceeded 1 trillion U.S. dollars, which is equivalent to Spain's economic aggregate. According to estimates from the World Bank, from 2013 to 2017, China’s average contribution to world economic growth exceeded 30%, which exceeded the combined contribution of the United States, the Eurozone and Japan. This not only shows the vitality and resilience of the Chinese economy, but also shows that the steady growth of the Chinese economy has created more opportunities for the recovery of the world economy.
At the same time, in the past two years, China has achieved phased results in advancing the supply-side structural reforms: the reduction of steel production capacity by more than 120 million tons, the banning of “land steel”, the reduction of coal production capacity by more than 540 million tons, and the reduction of the area for sale of commercial housing by 130 million. Square meters, the overall national destocking cycle has returned to a reasonable range; the trend of rising macro leverage has been curbed, and financial risks have been eased overall; structural tax reductions have been promoted, and various corporate taxes and fees and other costs have been reduced by 1 trillion yuan each year Above RMB yuan; vigorously promote public services, infrastructure and other fields to make up for shortcomings. Through market clearing, the market supply and demand relationship has been adjusted, which has led to price rebounds in some areas, comprehensively improved the adaptability and innovation of the supply system, accelerated the conversion of new and old momentum, and provided strong support for the recovery of the world economy.
Niu Li analyzed that China's vast market space has created a lot of job opportunities for the world.
At the end of 2017, China's total population reached 1.39 billion people, and the population size of nearly 1.4 billion means huge market demand. In 2017, China's imports of goods and services reached 2.3 trillion U.S. dollars, and non-financial overseas direct investment exceeded 120 billion U.S. dollars, providing countries with broad market opportunities, investment opportunities and development opportunities.
At the same time, a vibrant and resilient Chinese economy has created a lot of job opportunities for people from all over the world. In terms of US exports to China, according to the statistics of the US Department of Commerce, US exports of goods and services to China in 2015 supported 910,000 domestic jobs. The US-China Business Council report shows that US exports to China have contributed more to the creation of jobs in the US. The report believes that due to China's deep involvement in global value chains, in addition to bilateral direct trade, a large number of US products are exported to China indirectly. Based on this estimate, in 2015, US exports to China actually supported 1.8 million new jobs in the United States; US exports to China and Sino-US two-way investment together supported 2.6 million jobs in the United States. According to our calculations based on the world input-output model, the U.S. exports of goods and services to China in 2016 stimulated 3.312 million U.S. jobs.
Niu Li said that China's high-quality and cheap products enhance the well-being of people of all countries. With the continuous improvement of China's manufacturing capacity, since the mid-1990s, high-quality and inexpensive Chinese products have promoted many countries to maintain low inflation rates and reduce the cost of living. Even after the world economy entered a round of expansion, the level of inflation did not rebound significantly, so China's exports of goods have improved the well-being of the people of all countries to a certain extent.
From the perspective of the United States, importing a large number of high-quality and low-cost goods from China helps it maintain a low level of inflation and increases the actual purchasing power of the American people, especially low- and middle-income groups. A study by the US-China Business Council shows that a typical US household income in 2015 was US$56,500, and trade with China saved an average of US$850 per family per year. The Oxford Research Institute estimates that the United States' imports of low-priced goods from China will help the United States reduce consumer prices by 1%-1.5% in 2015.
Niu Li also said that the joint construction of the “Belt and Road” will bring new development opportunities to countries along the route. China has not only adhered to the direction of economic globalization in terms of ideas, and has put forward and promoted the "Belt and Road" initiative, but also made the best response in practice. The “Belt and Road Initiative” initiative is currently one of the most popular international public products in the world.
At present, more than 100 countries and international organizations have participated in the construction of the "Belt and Road" in different forms, and more than 80 countries and international organizations have signed cooperation agreements with China. The “Belt and Road” International Cooperation Summit Forum has produced more than 270 fruitful results. A large number of interconnection projects have improved the development environment of participating countries and increased the space and potential for regional cooperation. The joint construction of the "Belt and Road" initiative has promoted the economic development of countries along the route and created a large number of employment opportunities, enabling countries, especially developing countries, to catch the express train of China's development. In 2017, Chinese companies made non-financial direct investment of US$14.36 billion in 59 countries along the “Belt and Road”, accounting for 12% of the total amount in the same period. The value of newly signed foreign contracted projects in 61 countries along the “Belt and Road” was US$144.32 billion, accounting for 54.4% of China’s newly signed foreign contracted projects in the same period, a year-on-year increase of 14.5%; the completed turnover was US$85.53 billion, accounting for the total amount in the same period Of 50.7%, an increase of 12.6% year-on-year. In 2017, China’s total imports and exports to countries along the “Belt and Road” was 7374.5 billion, an increase of 17.8% over the previous year. Among them, exports were 434.5 billion yuan, an increase of 12.1%, and imports were 3,070 billion yuan, an increase of 26.8%.
Niu Li predicts that a more open China will provide more investment opportunities for world development. China is working hard to promote the formation of a new pattern of comprehensive opening up and move towards a stage of high-quality development. China's door to opening up will not be closed, it will only open wider and wider. China will actively create a relaxed and orderly investment environment, relax foreign investment access, build high-standard free trade pilot zones, strengthen property rights protection, promote fair competition, and make the Chinese market more transparent and standardized.
It is estimated that in the next five years, China will import USD 8 trillion of goods and absorb USD 600 billion of foreign investment. The total foreign investment will reach USD 750 billion and the number of outbound tourism will reach 700 million. This will provide countries around the world with a broader market, more sufficient capital, richer products, and more valuable opportunities for cooperation. In the future, China's development will still be an important opportunity for the development of all countries. China, which has shifted from rapid growth to high-quality development, will provide a stronger impetus for the development of the world economy.