Xi Jinping’s Eight Latest Assessments of China’s Economy

China’s annual Central Economic Work Conference is a focal point of attention both at home and abroad.

This year’s Central Economic Work Conference is the first since the 19th National Congress, and next year will mark the inaugural year for implementing the spirit of that Congress. How will China’s economy embark on this new journey, and what new initiatives can we expect?

The People’s Daily client has compiled eight key statements made by General Secretary Xi Jinping on China’s economy since the 19th National Congress, offering an early glimpse into the country’s future economic blueprint.

On October 18, Xi Jinping delivered a report at the 19th National Congress of the Communist Party of China. Photo by Xinhua News Agency reporter Ju Peng.

China’s economy will remain on a positive trajectory over the long term.

“The long-term outlook for China’s economy is bright.”

— On November 9, Xi Jinping and Donald Trump jointly attended the closing ceremony of the China-U.S. Business Leaders Dialogue and delivered remarks.

“China’s economy enjoys a bright long-term outlook, with the foundations, conditions, and momentum to achieve steady progress and sustained improvement.”

— Xi Jinping’s congratulatory letter to the 2017 Fortune Global Forum in Guangzhou

Since the 19th National Congress, Xi Jinping has twice conveyed to the international community his unwavering confidence in the future of China’s economy.

Over the past five years, China’s economy has entered a new stage, shifting from “high-speed growth” to “high-quality development.” In the first three quarters of this year, China’s GDP grew by 6.9%, remaining within the 6.7%–6.9% range for nine consecutive quarters. More importantly, the economic structure continues to improve, employment targets have been surpassed, and several key indicators of business confidence have reached five-year highs…

Moreover, over the course of this year, the International Monetary Fund has revised its forecast for China’s economic growth upward on four occasions. This clearly demonstrates that China’s sustained economic improvement is no mere self‑praise; the international community sees it plainly as well.

The overarching principle of seeking progress while maintaining stability must continue to be upheld over the long term.

“The overarching principle of pursuing progress while maintaining stability is an important guiding principle for governing the country and must be upheld over the long term.”

— On December 8, Xi Jinping presided over a meeting of the Political Bureau of the CPC Central Committee to analyze and deliberate on economic work for 2018.

Seeking progress while maintaining stability has been the overarching tone of China’s economic performance over the past five years. The experience of these five years has demonstrated that China’s remarkable achievements today have been underpinned by the steady operation of the economy, coupled with efforts to make progress through deepening reform and opening-up and adjusting the economic structure.

In 2018, China stood at a pivotal juncture—decisive in securing a decisive victory in building a moderately prosperous society in all respects and in carrying forward the 13th Five-Year Plan. Looking ahead, China will strive to achieve basic socialist modernization and build itself into a strong, modern socialist country. With daunting development tasks and a complex set of circumstances, it is all the more essential to maintain a calm, overarching perspective, grasp the broader trends, and adhere to the general principle of seeking progress while ensuring stability.

China’s reform will cover a broader range of areas, introduce more measures, and be implemented with greater intensity.

“Next year, we will solemnly commemorate the 40th anniversary of reform and opening-up. China’s reforms will cover broader areas, introduce more measures, and be implemented with greater vigor.”

— On November 10, Xi Jinping attended the APEC Business Leaders’ Summit and delivered a keynote address.

Over the past five years, China has launched 360 major reform plans and more than 1,500 reform measures, achieving breakthrough progress in a number of important sectors and critical areas.

The report to the 19th National Congress of the Communist Party of China incorporated the overarching goal of comprehensively deepening reform into the framework of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and designated upholding comprehensive deepening of reform as one of the key components of the fundamental strategy for upholding and developing socialism with Chinese characteristics in the new era. This has demonstrated China’s unprecedented resolve and determination in advancing comprehensive reform, sending a strong signal that China’s reform is entering a new phase characterized by broader scope, more diverse measures, and greater intensity.

Next year marks the 40th anniversary of China’s reform and opening-up, and it will be worth watching to see what new initiatives China undertakes as it deepens its reforms across the board.

China’s door of opening-up will only open wider and wider.

“China’s door of opening-up will not be closed; it will only open wider and wider.”

— On November 9, Xi Jinping and Donald Trump jointly attended the closing ceremony of the China-U.S. Business Leaders Dialogue and delivered remarks.

At a time when deglobalization and trade protectionism are on the rise, Xi Jinping’s statement has undoubtedly provided the world with reassurance.

Over the next 15 years, China’s market is expected to import US$24 trillion worth of goods, attract US$2 trillion in foreign direct investment, and see its outbound investments total US$2 trillion. Moreover, China has pledged that all enterprises registered within its territory will be treated equally and without discrimination.

Faced with such a vast and infinitely promising open market, no one can remain unmoved. Moreover, China will continue to integrate more deeply into the global economy and develop a higher‑level open economy, creating even greater opportunities for the world and making an even more substantial contribution.

To strengthen and expand the real economy, we must prioritize the development of the manufacturing sector.

“We must always attach great importance to strengthening and expanding the real economy and must not pursue a path of singular development that shifts from the real sector to the virtual one.”

To develop the real economy, we must strengthen the manufacturing sector; at present, it is especially important to prioritize innovation-driven development and master and effectively apply key technologies.

— On December 12, Xi Jinping inspected Xuzhou City in Jiangsu Province and paid a cordial visit to employee representatives at XCMG Heavy Machinery Co., Ltd.

Today, although China is often hailed as the “world’s factory,” its impressive manufacturing scale cannot mask persistent quality shortcomings. For China’s economy to transition from rapid growth to high-quality development, its manufacturing sector must shift from “Made in China” to “Created in China,” from “China Speed” to “China Quality,” and from “Chinese Products” to “Chinese Brands.”

In his first field visit since the 19th National Congress, Xi Jinping paid a visit to manufacturing enterprises, offering encouragement to the real economy and underscoring its paramount importance. The roadmap and key priorities for bolstering China’s real economy are now clearly in sight.

Implement the National Big Data Strategy and Accelerate the Development of Digital China.

“We will advance the implementation of the national big data strategy, accelerate the improvement of digital infrastructure, promote the integration and open sharing of data resources, ensure data security, and speed up the development of Digital China, so as to better serve China’s economic and social development and improve the lives of our people.” — On December 8, Xi Jinping presided over the second collective study session of the Political Bureau of the CPC Central Committee.

Driven by national strategies, China’s digital economy continues to unlock new possibilities, enabling the world to discover a brand‑new China.

On December 4, McKinsey released its report on China’s digital economy, which corroborates this trend. The report shows that China leads the world in e‑commerce and digital payments; it accounts for one-third of the global number of unicorn companies, with their combined valuation representing roughly 43% of the worldwide total; and between 2014 and 2016, venture capital investment in the country reached US$77 billion. The report forecasts that, going forward, China’s digital transformation will set the pace globally.

China’s development is an opportunity for the world.

“China is a beneficiary of economic globalization, and even more so, a contributor. China’s development represents an opportunity for the world.”

— On October 30, Xi Jinping met with the overseas members and the Chinese entrepreneur members of the Advisory Board of the School of Economics and Management at Tsinghua University.

At present, for many countries, China has become their largest trading partner, largest investor, and largest exporter of goods.

China’s steady economic growth has enabled the world to share in the benefits of development. Take tourism as an example: countries such as Thailand and South Korea each attract millions of Chinese tourists annually; at an average per capita spending of US$1,000, these nations generate tens of billions of dollars in tourism revenue every year.

Moreover, experience has shown that the faster China develops, the more opportunities there are for the world.

Welcome aboard China’s express train of development.

“Let more countries board the express train of China’s development.” — On November 10, Xi Jinping attended the APEC Business Leaders’ Summit and delivered a keynote address. Earlier, at numerous international forums, Xi Jinping had extended invitations to countries around the world, welcoming them to join China’s “express train” and “free ride” of development.

China demonstrates both sincere commitment and concrete actions. Take the Belt and Road Initiative as an example: since its launch in 2013, more than 100 countries and international organizations have actively voiced their support, over 40 countries and international bodies have signed cooperation agreements with China, and Chinese enterprises have invested more than US$50 billion in countries along the route. Moreover, institutions such as the Asian Infrastructure Investment Bank, the Silk Road Fund, and the New Development Bank of the BRICS countries continue to make steady progress, offering the international community an increasing number of opportunities for win-win cooperation with China.

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　　Source: People’s Daily Client; Authors: Wang Kan, Yang Lijuan