China’s Economic Blueprint
For the Chinese economy, 2016 is a year of reform, openness and
international co-operation. These priorities may sound surprisingly familiar
(耳熟能详) to China-watchers. Their potent combination (有力结合) has been instrumental
in China’s growth story over decades. We are taking them further.
Given the size of China’s $10 trillion economy, overdependence on
investment and exports is not tenable (过度依赖投资和出口拉动是不可持续的). What is called for is
not temporary fixes: my government has resisted the temptations of quantitative
easing (量化宽松) and competitive currency devaluation (竞争性货币贬值). Instead, we choose
We are pushing through market reforms, to speed the transition to a
sustainable growth model markedly more driven by innovation and consumption.
Employment, income levels and the environment are all high on our list of
We are combining myriad policy tools into two major drivers of growth
(两大经济增长引擎). The first, essential to structural reform, highlights
entrepreneurship and innovation. The second focuses on better provision (增加供给)
of public goods and services-which in turn contributes to stronger demand and a
higher quality of life (既拉动有效需求，又可以改善民生). It is all about striking a better
balance between the state and the market (关键在于处理好政府和市场的关系) by offering
individuals, small and medium-sized companies as well as major corporations a
more enabling environment (良好环境) for business development and innovation,
thereby unlocking growth potential (释放增长潜力). A leaner government can play a
better role as macroeconomic fine-tuner (宏观经济调控者), regulator for fair
competition (公平竞争的有效监督者), champion of the reform agenda (改革的推动者) and ultimate
backstop when systemic risks threaten (在系统性风险冒头时果断加以应对).
These efforts are already paying off (收到成效). The services sector,
accounting for half of China’s GDP, keeps widening its lead over manufacturing
(制造业反超且升势不减). Entrepreneurship and innovation are the new fashion (蔚然成风). Over
10,000 new businesses are registered every day. Growth in high-tech industries
is leading that of the industrial sector by a wide margin (明显/大幅度). Innovations
in technology, business models and management keep widening the economic horizon
in previously unimaginable ways.
We are creating over 10 million jobs a year and disposable-income growth is
outstripping that of GDP. Consumption, already responsible for 60% of growth
(消费对经济增长的贡献率达到60%), keeps going strong and up-market. Take outbound tourism, for
example: Chinese citizens made over 100m trips overseas in 2014, and the first
half of 2015 saw year-on-year growth of 10% (今年上半年又同比增长10%).
In short, despite moderation in growth (增速放缓), the Chinese economy is
moving in the desired direction of stronger domestic demand and innovation. One
by-product (副产品) is a fall in the relevance of indicators such as power
consumption (用电量), rail-cargo volume (铁路货运量) and new bank credit in gauging
economic performance. Yet this transition from “bigger is better” (求快求大) to
“less is more” (求优求精) is a good thing. I would otherwise be worried whether the
reforms were working as intended.
Structural reform is not only about exploring new sources of growth
(寻找新的增长点), but also about making traditional industries more competitive.China’s
massive industrial sector remains a vital part of our plan for growth. We are
working on upgrading “Made inChina” with “China Manufacturing 2025”, “Internet
Plus” and other initiatives. We are deepening integration with the world
economy with deregulation in many areas to improve access for foreign
investments (在更多领域放宽外资准入), not least in service sectors.
Make no mistake. Competition is growing tougher as the Chinese market
matures. But we are confident that China is a worthwhile market (中国市场值得投入), a
pivot of the global supply chain and a partner for the wider world market.
The best of all worlds (集各方所长).
This is not yet a world of plenty (我们的世界难称富足). Billions in developing
countries are yet to benefit from large-scale industrialization and proper
infrastructure. The demand is enormous, but largely subdued for lack of proper
funding, affordable equipment and technology.
This can be changed. On connectivity, we have the “Belt and Road”
initiative. On industrialization and urbanization, we offer partnerships in
industrial-capacity co-operation. Combining China’s manufacturing prowess with
the cutting-edge technologies (高端技术) of the developed economies, we can,
together, supply good equipment at good prices (提供“优质优价”的装备) to the developing
world, sustaining robust growth with supply-side innovation (以供给创新推动强劲增长). If
development for 1.3 billion Chinese has helped buoy world growth, imagine what
such growth spurts for many more billions could do for the commodities market,
manufacturing and many others.
Structural reform featuring entrepreneurship and innovation, greater
openness and win-win international co-operation-these are our priorities for
2016 and beyond. This is our answer to the call for sustainable growth-a
blueprint for sharing with the world China’s market opportunities and Chinese