Facebook Twitter 新浪微博 Instagram YouTube Wednesday, Feb. 17, 2016

A Prosperous China Benefits the World, says Chinese Ambassador Cui Tiankai

By Penghui Zhang (People's Daily Online)    11:01, February 17, 2016

(File photo)

A prosperous China benefits the world, says Cui Tiankai, Chinese Ambassador to the United States in an Op-Ed article published on the Wall Street Journal Tuesday. He adds that China now is working to improve growth. Accusations of currency manipulation are false.

Ambassador Cui held that China is often used as a scapegoat for current global market fluctuation "for no logical reason". It is imperative that people are clear about the reality behind the world-wide economic volatility. China is adhering to deepening reform and there is still great potential for China's economy. A prosperous China benefits the world.

Cui elaborated four reasons for the argument. For one, China’s economic growth remains strong and its contribution to the world economy remains impressive. According to the World Bank, between 2009 and 2014 China’s GDP grew at an average annual rate of 8.7%, while average world growth was 2%. In that same period, China was the stimulant behind 30% of global economic growth. In 2015, China was still one of the largest and fastest-growing economies, with a growth rate of 6.9%, and it contributed 25% to global growth.

Ambassador Cui also explained why the fluctuations in Chinese stock market is not worrisome. He says, undoubtedly, there is room for improvement in market management, but China’s real economy in the long term has not been harmed since the stock-market turmoil began last August. China’s stock market is still developing—its value is about 30% of China’s total GDP, compared with 100% in the U.S. For this reason, China’s stock-market ups and downs shouldn’t be taken as reflective of general sentiment about the Chinese economy or its overall performance.

As for the depreciation of the yuan, he said that China’s currency depreciation is mainly the result of an exchange-rate reform launched last year to follow international standards and to establish a more flexible system linked to a basket of currencies, thus letting markets play the decisive role. This has nothing to do with boosting exports.

And recent reform on exchange rate reform of yuan has worked. Recently the yuan has appreciated significantly against both the U.S. dollar and the basket of currencies, showing its value can rise and fall.

Ambassador Cui stressed that structural reforms will bring a brighter future to China’s economy and, consequently, greater opportunity to the world. To sustain growth, China is implementing structural reforms that place greater emphasis on developing an innovation-and-consumption-driven economy. China’s 13th five-year plan lays out five clear development concepts: innovation, coordination, green development, opening-up and inclusiveness.

Cui pointed out, structural reforms are never easy and come with risks. Yet China’s leaders are determined to see them through. China is, in fact, playing a pioneering role in the structural reform that the global economy desperately needs.

Ambassador Cui believed a prosperous China benefits the world. As the host of the 2016 G-20 summit, China is ready to work with the rest of the world to pool wisdom, advance international economic cooperation and improve global economic governance to achieve strong, sustainable and balanced growth. As the two largest economies in the world, China and the U.S. have an important role to play. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Kong Defang,Wu Chengliang)

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