In 2013, although faced with a complicated domestic and international situation, the CPC (Communist Party of China) Central Committee and the State Council led the people of all nationalities of China in thoroughly implementing the spirit of the 18th Party Congress, upheld the general ethos of "moving forward while maintaining stability", and adhered to the guideline that "the macro policy should be stable, micro policy flexible and social policy should support the bottom line", while maintaining steady growth, adjusting economic structures and forging ahead with reform, all while actively making innovations to the means of macro control. As a result, national economic and social development saw stabilized and accelerated growth and achieved a good start.
Economic performance fulfilled its target in 2013
The economy as a whole was stable and experienced comparatively fast growth in 2013. GDP for the year reached 56.88 trillion yuan (1 USD = 6.1 yuan), an increase of 7.7 percent over the previous year and in full accord with the targeted figure. China's government revenue increased by 10.1 percent to 12.91 trillion yuan and the deficit was 1.2 trillion yuan. Profits from industrial enterprises totaled 6.28 trillion yuan. It is gratifying that domestic demand continued to be the main driving force of growth. Retail sales of consumer goods totaled 23.78 trillion yuan, an increase of 13.1 percent. A number of new forms and areas of consumption were very vigorous, and the value of e-commerce transactions exceeded 10 trillion yuan, an increase of 19.3 percent. The contribution of domestic demand to economic growth reached 104.4 percent.
Meanwhile, overall price levels were basically stable. Consumer prices for the year rose 2.6 percent, within the targeted range. The work of purchasing, storing and releasing important commodities and of adjusting their imports and exports proceeded in good order.
Progress was made in structural adjustment and economic transformation
China has experienced three decades of super-fast growth at the expense of cheap costs. Now, we face more restrictions from limited natural resources and an ageing society. Domestic consumption should be the new growth engine. In 2013, the Chinese government comprehensively advanced economic structural reform and created sound systems and mechanisms for maintaining stable growth and carrying out structural adjustments.
China's economic adjustments have shown marked progress. Industrial structural adjustment proceeded steadily. Significant achievements were made in technological innovations and fostering emerging industries. The integration of urban and rural development proceeded in an orderly fashion. Development in multiple regions became better balanced. Efforts were accelerated to conserve energy, reduce emissions and protect the environment. According to statistics, the proportion of the manufacturing industry to GDP dropped for the first time. The growth rate in the less developed central and western parts of the country was much higher than in the richer eastern region in 2013, signaling more balanced development across the board.
An array of measures have successfully helped to transform the economy, such as using value-added tax to replace turnover tax and setting up the pilot Shanghai Free Trade Zone. China's fast development has proved the doomsayers wrong.
Meanwhile, China is putting forth efforts to use innovation to support and lead economic structural improvements and upgrades. Innovation is the motive force for adjusting and upgrading the economic structure. The government aims to make innovation the core of China's development endeavors, promote the full integration of science and technology with economic and social development, and elevate China's industries to a high level in the global value chain.
Deepening reform is the top priority for the Chinese government
The Chinese government has determined that the process of comprehensively deepening reform will be completed in seven years, and 2014 marks the first year. Reform is the primary theme of the government's agenda this year, with economic reform in particular being the paramount task. The direction of many reforms has been made clear and the measures have been readied for implementation. They can be divided into three categories. Those pertaining to the economy include streamlining administration and delegating power to lower levels, tax reform, financial reform and accelerating economic transformation. Those relating to social development and management include advancing urbanization, improving people's well-being and reforming the household registration system. Finally, reform in ecological progress comprises measures to advance the transformation of energy production and consumption.
China's reform used to be led by the government, but future reform will be a revolution imposed by the government on itself. This will be a painful process, which will call for not only great determination, but also great political wisdom. This year's reform measures are aimed at ensuring stable economic growth and avoiding unnecessary risks. Therefore, they must facilitate economic growth.
China's measures of comprehensive reform are also good news for the world economy. Because the fortunes of the Chinese economy are so incredibly linked with those of the global economy, sound economic and social development in China will bring opportunities to the wider world.
o Yuan Guisen is the ambassador of the People's Republic of China to The Bahamas.
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