China's Economic Growth Aids Global Development

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Last updated at: (Beijing Time) Sunday, October 06, 2002

China's Economic Growth Aids Global Development

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China's economy enjoyed a high��growth rate of 7.8 percent and low inflation in the first half of this year. Latest figures show the country's economy has leapt to sixth place from behind in global rankings since reforms were introduced more than twenty years ago. The strong performance has attracted worldwide attention �� and suggests China is making a major contribution to the economic development of the world.

Government statistics show that in 1990 China's economic aggregate ranked tenth in the world �� the second largest of all developing countries. Twelve years later, it has jumped to sixth place.

The world's economic history books also show that from 1978 to 2001 China's rapid economic development could not be matched. The average annual GDP growth stood at 9.4 percent �� higher than the world average.

China's overall GDP exceeded 1,000 billion US dollars for the first time in 2000. The average GDP stood at over 800 US dollars per capita.

Deputy director of the National Bureau of Statistics �� Qiu Xiaohua �� says the nation's move from providing adequate food and clothing to a comfortable, relatively modern lifestyle for the majority, is attributed to China's opening��up and reform. These policies have also been a success in eliminating poverty in the world, he said.

But in recent years sustainable and steady economic growth has been hindered by a series of natural adversities, namely, the 1997 Asian financial crisis, the devastating floods of 1998 and last year's terrorist attack on the United States in 2001.

Zheng Jingping, Dept. Director of National Bureau of Statistics, said: "To meet the challenges brought about by the Asian financial crisis and the lack of domestic consumption, the Chinese government adopted pro��active fiscal and moderately prudent monetary policies �� as well as employing a strategy to develop its vast western region. These policies have helped China maintain a unexpected economic growth rate amid a dire world environment."

China says its foreign exchange reserve has exceeded 250 billion US dollars to rank second in the world. Foreign exchange reached only 5.6 billion in 1989. China also has seen the largest foreign direct investment for nine consecutive years. Experts say that WTO membership will push forward this trend in the coming years.

Deepak Bhattasali, Chief Economist of World Bank Beijing Office, said: "Investors around the world, they look around which cost very low and China has a strong linkage with different world's markets."

Experts predict if China can keep its economic growth rate at around 7 percent over the next twenty years, it will rank third in the world economic aggregate table behind the United States and Japan.

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