The Tribune

YOUR SAY 
By Chinese Ambassador Yuan Guisen

IN 2013, although faced with the complicated domestic and international situation, the CPC Central Committee and the State Council led the people of all nationalities of China to thoroughly implement the spirit of the 18th Party Congress, upheld the general tone of “moving forward while maintaining stability”, adhered to the guideline of “the macro policy should be stable, micro policy be flexible and social policy support the bottom line” while maintaining steady growth, adjusting economic structure and forging ahead with reform, and actively make explorations and innovations of macro-control means, as a result, the national economic and social development realised stabilised and accelerated growth and achieved a good start.

I. Economic performance fulfilled its target in 2013.

The economy as a whole was stable and comparatively fast growth in 2013. GDP of the year reached 56.88 trillion yuan (1 USD = 6.1 yuan), an increase of 7.7% over the previous year and in full accord with the targeted figure. China’s government revenue increased by 10.1% to 12.91 trillion yuan and the deficit was 1.2 trillion yuan. Profits of industrial enterprises reached 6.28 trillion yuan. It is gratifying that domestic demand continued to be the main driving force of growth. Retail sales of consumer goods totalled 23.78 trillion yuan, an increase of 13.1%. A number of new forms and areas of consumption were very vigorous, the value of e-commerce transactions exceeded 10 trillion yuan, an increase of 19.3%. The contribution of domestic demand to economic growth reached 104.4%.

Meanwhile, overall price levels were basically stable. Consumer price for the year rose 2.6%, within the targeted range. The work of purchasing, storing and releasing important commodities and of adjusting their imports and exports proceeded in good order.

II. Progress was made in structural adjustment and economic transformation.

China has experienced three decades of super-fast growth at the expense of cheap costs. Now, we face more restrictions from limited natural resources and an ageing society. Domestic consumption should be the new growth engine. In 2013, Chinese government comprehensively advanced economic structural reform and created sound systems and mechanisms for maintaining stable growth and carrying out structural adjustments.

China’s economic adjustment has marked progress. Industrial structural adjustment proceeded steadily. Significant achievements were made in technological innovations and fostering emerging industries. The integration of urban and rural development proceeded in an orderly fashion. Development in different regions became better balanced. And efforts were accelerated to conserve energy, reduce emissions and protect the environment. According to statistics, the proportion of the manufacturing industry to GDP dropped for the first time. The growth rate in the less developed central and western parts of the country was much higher than that in the richer eastern region in 2013, signalling more balanced development across the board.

An array of measures have successfully helped to transform economy, such as using value-added tax to replace turnover tax and setting up the pilot Shanghai free trade zone. China’s fast development has proved the doomsayers wrong.

Meanwhile, China is putting forth efforts on using innovation to support and lead economic structural improvement and upgrading. Innovation is the motive force for adjusting and upgrading the economic structure. The government is to make innovation the core of China’s development endeavours, promote the full integration of science and technology with economic and social development, and elevate China’s industries to the high range of the global value chain.

III. Deepening reform is the top priority for the Chinese Government.

The Chinese Government has determined that the process of comprehensively deepening the reform will be completed in seven years, and 2014 marks the first year. Reform is the primary theme of the government’s agenda this year, with economic reform in particular being the paramount task. Directions of many reforms have been made clear and the measures have been readied for implementation. They can be divided into three categories. Those pertaining to the economy include streamlining administration and delegating power to lower levels, tax reform, financial reform and accelerating economic transformation. Those relating to social development and management include advancing urbanisation, improving people’s well-being and reforming the household registration system. Finally reform in ecological progress comprises measures advancing the transformation of energy production and consumption.

China’s reform used to be led by the government, but the future reform will be a revolution imposed by the government on itself. This will be a painful process, which needs not only great determination, but also great political wisdom. This year’s reform measures are to ensure stable economic growth and avoid unnecessary risks. Therefore, they must facilitate economic growth.

China’s measures of comprehensive reform are also good news for the world economy. Because the fortunes of the Chinese economy are so incredibly linked with those of the global economy, sound economic and social development in China will bring opportunities to the wider world.