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Current economic development in China
2014-09-19 21:55

The global economic environment has remained an intricate one since the beginning of this year. The road to recovery in developed countries has remained bumpy. Growth in emerging market economies has slowed down, and the Chinese economy faces greater downward pressure. Facing this challenging environment, we have continued to follow the general principle of making progress while maintaining stability. We have stayed the course and pursued a proactive approach. Instead of adopting strong economic stimulus or easing monetary policy, we have vigorously promoted reform and economic readjustment, and made efforts to improve people's lives. As a result, we have maintained steady economic performance. In the first half of the year, the Chinese economy registered a 7.4 percent growth, and CPI rise was kept at 2.3 percent. Despite economic slowdown, between January and August, the surveyed unemployment rate was kept at around 5 percent in 31 major cities. More than 9.7 million urban jobs were created, which is over one hundred thousand more compared with the same period last year.

Since the beginning of this government, more power has benn delegated to localities. We have advanced the reform of the administrative review and approval system, covering over 600 items this year alone. Moreover, the business registration reform, among others, has been carried out nationwide. This has lowered the threshold for starting businesses and removed restrictions on them, thus giving a great boost to business development in the whole country. Between January and August, the amount of newly registered market entities was more than eight million, and from March to August, the number of newly registered businesses grew by 61 percent over the previous year, all pointing to a massive upsurge which has generated more than 10 million jobs. In addition, we have also introduced reforms to investment financing, taxation and logistics systems, and further opened up the service sector and other emerging industries. All these measures have been vital in fostering and increasing job opportunities.

The positive changes in China's economy are not only reflected in the increase of jobs and residents' incomes, but also in the structural upgrading. We have streamlined administration, delegated powers to the lower levels, and adopted fiscal, taxation and financial measures such as targeted tax reduction and targeted reduction of required bank reserve ratio. All these measures have spurred the growth of the service sector, agriculture, rural area and the welfare of farmers, as well as small and micro-businesses, private businesses and emerging industries. In the first half of the year, new businesses and new business models such as logistics, express delivery and e-commerce all developed fast. The number of newly registered service businesses surged by more than 70 percent. The tertiary industry continued to outperform the secondary industry in terms of growth rate and share of GDP, and is a leading sector of the economy. The share of private investment in fixed asset investment increased by 1.4 percentage points year on year. High-tech industries and equipment manufacturing grew faster than the industrial average.

 

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