China’s new economy looks to play bigger global role

Global Business

China's new economy looks to play bigger global role

China is playing a more important role in global governance, as its economy grows steady. Shanghai plays an significant role in China’s economy. What’s the history of this metropolis? What kind of challenges does it face?

CCTV’s Xing Zheming reports.

China\'s new economy looks to play bigger global role

China\'s new economy looks to play bigger global role

China is playing a more important role as its economy grows steady. Shanghai plays an significant role in that economy. What's the history of this metropolis? What kind of challenges does it face? CCTV's Xing Zheming reports.

To know what’s going on in China’s economy, Shanghai is the place you cannot miss. The metropolis is at the very core of China’s most modern, developed and dynamic regions. It is also a global financial center and a transport hub. The Lujiazui skyline is a symbol of China’s rise over the past few decades, with the massive campaigns of “reform and opening up” taking effect.

China is the one of the world’s fastest-growing major economies. Growth rates have averaged 10 percent over 30 years. The size of Chinese economy surpassed that of Japan in 2010, to take the world’s number two spot by nominal GDP.

But there’s still a long way to go. With a population topping 1.3 billion people, the GDP per capita last year was about U.S. $8,000. That’s well below the World Bank standard of $12,000 for high-income countries, and even way below the average standard of $37,000 in developed countries such as the US, Japan, Germany and the U.K.

China’s economy also faces great pressure and challenges. For three decades, growth was fueled by investment and exports. The current sluggish world economy is casting shadows on China’s economy. But a “slowing” Chinese economy means a slowing of the economic growth rate, not a recession.

And as China’s economic importance has grown, so has attention to the structure and health of the economy. Under what’s called the “new normal”, China has entered a new phase. The new trend features more sustainable, mid- to high-speed growth with higher efficiency and lower costs.

In the face of industrial over-capacity, environmental pollution, increasing labor costs and lack of innovation, the government is accelerating the transformation of economic growth pattern and adjusting economic structure, with an emphasis on quality.

So what are the new engines for China’s economy? Massive entrepreneurship and innovation, upgrading China’s manufacturing sectors through “Made in China 2025” strategy, continuing the scale of urbanization, developing services industries and boosting domestic consumption.

A more open economy will also bring new growth opportunities. China remains the top destination for foreign direct investment. The scale of China’s outbound direct investment will surpass incoming foreign investment. Along with Chinese capital – Chinese brands, talented professionals and business models can be found across the globe.