China's economy grew 7.4 percent year on year in the first quarter of 2014, the National Bureau of Statistics (NBS) revealed on Wednesday - marginally below the government official target of around 7.5%. As ever, some foreign media are trying to make a mountain out of a molehill with this Chinese economic data. CNN claimed China's economy is losing steam; the New York Times behaved as if China is to be the next Lehman Brothers.
Many western economists tend to forget the role that their own economies played in creating the economic crisis. But in China, although the struggle to find a job is becoming more complex for college graduates, many enterprises have job vacancies to provide; travel peaks during the national holidays, flourishing night markets and shops, accelerating infrastructure construction in cities, all these reflect China’s economic momentum.
China's economic fundamentals have not faltered. At the recently concluded Boao Forum for Asia, Chinese president Xi Jinping said "It would not be impossible to grow faster" but added, "We don't want to grow too fast." Chinese Premier Minster Li Keqiang also said "We will not resort to large-scale short-term stimulus policies just because of some temporary economic fluctuations; rather we will focus our attention on sound development in the medium to long run, and strive for sustained and sound economic development." China's leadership is determined to promote healthy economic development; China's leadership derives its confidence and competence from a full understanding of the economic situation.
China's markets have reasons to be confident. Firstly this comes from China's policies. Many Chinese administrative restrictions have not yet been eased; there is still broad scope for financial measures to make their impact.
Second, it comes from developing potential. Implementing a new type of people-centered urbanization, optimizing infrastructure construction, promtoing ecological and environmental industries, developing industries in central and western China, improving standards of living - China's economic growth has bright prospects.
Third, it comes from innovation. Due to Internet penetration and bridging the technology gap, China's innovation is undergoing rapid development, apparent in areas such as high-speed rail, E-commerce, mobile apps, and other innovative technology in which China is gadually becoming a world leader.
China has many problems to solve and many challenges to face. But reform is the pathway to identifying problems and then dealing with them. Comprehensively reinforcing reform focuses precisely on solving major issues of system and structure. Minor hiccups encountered on the path to development will not put a stop to China's future growth.
The article is edited and translated from 《中国须有更多的经济自信》, source: People's Daily , author: Wang Wen