China's Economy Is Healthy, Despite Slower Growth

By staff reporter XING WEN

While China's economic growth slowed slightly to 6.7 percent in the first quarter of this year and the growth of private-sector investment has slowed, the economy is healthy, stable and sustainable, according to Xu Shaoshi, chairman of the National Development and Reform Commission. At the ongoing Annual Meeting of the New Champions 2016 in Tianjin, Xu noted that China, which now accounts for a quarter of total global growth, has made significant progress in shifting the economy to a consumption-based, services-led model, with growth driven more by innovation and technology. "Consumption has now exceeded investment," he revealed. "With emerging business models and new industries, everybody is engaged in innovation and the new drivers are enjoying very good growth." Nevertheless, there are significant challenges ahead, including the need to address over capacity and to pursue further structural reforms over the next five years to enhance entrepreneurship, innovation and the adoption of productivity-enhancing technologies.

Tianjin is a good showcase where innovation and technology in China have enhanced growth performance, Yan Qingmin, the municipality's vice-mayor, pointed out, remarking that the city's economy is expanding at nine percent, thanks largely to new industries such as aerospace.

Lei Jun, founder, chairman and chief executive officer of tech company Xiaomi, confirmed that the landscape for entrepreneurs in China had changed significantly over the past 20 years, with scores of innovative companies emerging.

China's advantage is its openness to collaboration and partnerships, as well as the government's commitment to focus on improving the rule of law, including the protection of intellectual property rights, and infrastructure, reckoned Hugh Martin, chief executive officer of Sensity Systems in the U.S.