China is both a global factory and a global market

The Chinese economy is an important engine of the world economy

The incremental contribution of the Chinese economy to world economic growth ranks first in the world. According to World Bank statistics, calculated in constant US dollars in 2010, the proportion of China's GDP to the world economy increased by 2.6 percentage points during the 12th Five Year Plan period, reaching 11.9% in 2015; From 2011 to 2015, the contribution rates of China's economic growth to world economic growth were 28.5%, 31.6%, 32.4%, 29.6%, and 29.9%, respectively. During the 12th Five Year Plan period, the average annual contribution rate reached 30.4%. According to the latest forecast from the World Bank, the global economic growth rate in 2016 was around 2.3%, and China's contribution rate is expected to reach 34.6%. Without China's economic growth, the global economy could only achieve 1.5% growth. It can be seen that the contribution of the Chinese economy to world economic growth far exceeds that of other economies, making it the largest contributor to world economic growth.

The growth of domestic demand in China has boosted the global economy. In recent years, the income of Chinese residents has maintained rapid growth. In 2016, the per capita disposable income of Chinese residents was 23821 yuan, an actual year-on-year increase of 6.3%. Compared with 2010, the per capita disposable income of residents in China increased by 11301 yuan, providing a reliable guarantee for residents to increase consumption expenditure. At present, household consumption has become the main driving force of economic growth and maintains a good growth momentum, with the contribution rate of consumption to economic growth continuously increasing. The growth of Chinese consumption has also driven the demand for global goods and services, especially the rapid growth of service trade imports, which are also rapidly increasing in proportion to the world. In 2016, China's service imports amounted to 3550.21 billion yuan, a year-on-year increase of 30.5%. Among them, travel imports reached 233.027 billion yuan, a year-on-year increase of 49.8%, which is the main factor contributing to the rapid growth of service imports. This alone has made a significant contribution to world economic growth.

Economic development will benefit the world more

During the 13th Five Year Plan period, residents' income will still maintain a medium to high growth rate. According to the current progress of China's economic transformation, during the 13th Five Year Plan period, the per capita GDP of China is expected to increase by about 30%, the growth rate of disposable income of residents is expected to be slightly higher, the urban-rural income gap is further improved, the impoverished population is comprehensively lifted out of poverty, the middle-income group is constantly growing, and the overall purchasing power of Chinese residents will be significantly improved. Especially with the significant increase in purchasing power of middle and high income groups, the enormous potential of China's domestic market will continue to be unleashed and provide a continuous source of driving force for world economic development.

External demand will show a rapid growth trend. As the income level of residents increases, the consumption structure of residents is also improving synchronously. In 2016, the proportion of Chinese people's clothing expenditure in consumption expenditure was decreasing, while expenditures related to personal development and enjoyment such as housing, transportation, healthcare, culture, education, tourism, etc. grew rapidly. The proportion of residents consuming goods and services from outside China will gradually increase, which means that the growth of external demand will be faster than the growth of residents' income, and the driving effect on the global economy will gradually increase. It is preliminarily predicted that during the 13th Five Year Plan period, the import scale of China's goods trade is expected to reach 9 trillion US dollars, the import scale of service trade will exceed 2 trillion US dollars, and outbound tourism will reach 700 million people. The large-scale cross-border trade in goods and services is a huge market for businesses around the world, and China's development will also bring more opportunities to the world.

Foreign investment and economic cooperation maintain a good momentum. In recent years, while actively attracting foreign investment, China has significantly accelerated the pace of enterprises going global, and foreign direct investment has grown rapidly, playing a certain role in promoting the development of other economies. In 2016, non-financial outward direct investment reached $170.11 billion, an increase of 44.1% compared to the previous year. In the next five years, China will absorb a large amount of foreign investment and also invest heavily abroad, which will inject strong momentum into the continuously sluggish global investment and trade

Actively participate in global governance and create a favorable external development environment. While the share of emerging economies in the world economy has increased and their contribution to global economic growth has increased, the current global governance system and economic structure are not compatible. Developing countries are mainly the application of rules in international affairs and cannot obtain a voice that matches their economic size. With the increasingly close global economic exchanges, trade frictions and conflicts of interest are inevitable. Without an equal dialogue system, it is difficult to fairly resolve various conflicts, which is not conducive to the sustainable development of economic globalization. China, along with other developing countries, actively participates in global governance and creates a global governance system of consultation, co construction, and sharing, which is conducive to the healthy and stable development of the world economy.

Enhance the division of labor position in the global value chain and enhance the medium to long-term development potential. After the international financial crisis, developed countries implemented a strategy of reindustrialization to seize the high-end manufacturing market, while emerging economies competed for the mid to low end product market with their low cost advantages. China is facing a fierce external competitive environment. At the same time, the increasing demand for foreign goods among domestic residents also indicates that the quality and structure of Chinese products cannot fully meet the needs of the general population, and there is still huge room for improvement and upgrading. China vigorously promotes supply side structural reform and follows the path of innovative development, which is conducive to improving the quality of Chinese products and promoting global industrial division of labor.

Increase investment in human capital and enhance the potential for industrial transformation and consumption upgrading. Over the past thirty years, China's participation in economic globalization has created a large number of job opportunities, urbanization level has been continuously improving, and labor skills have also been continuously improved. But with the acceleration of industrial upgrading and structural adjustment, and the improvement of information technology, the demand for high-end talents is becoming increasingly urgent. By increasing investment in human capital and strengthening vocational education, China is enabling more people to enter the high-end industrial chain, cultivating reserve talents for the transformation and upgrading of China's manufacturing industry, while improving residents' income levels, promoting sustainable growth in consumption capacity, and cultivating and strengthening the domestic consumer market.

Improve the development environment of enterprises and activate the vitality of micro entities. The improvement of labor productivity cannot be separated from high-quality enterprises, and the development of micro enterprise entities is the fundamental driving force of economic growth. In recent years, China has been committed to improving the business environment for enterprises, promoting commercial system reform, and reducing institutional costs for enterprises, and has achieved phased results. With the vigorous promotion of reforms in state-owned enterprises, service openness, and market regulation, the development environment of enterprises will be further improved, providing a favorable environment for global enterprises to share opportunities for China's economic development.

Overall, China's transition from a "world factory" to a "world market" is a phased change that conforms to the laws of economic development and will also benefit the world with the achievements of China's economic development. Especially during the period of sustained global economic downturn and the rise of trade protectionism, the stable development of China's economy is a stabilizer and ballast for global economic growth. With the advancement of various reform tasks in China and the gradual improvement of the internal and external development environment, China's economic growth will provide a broader market for the world and make a lasting contribution to world economic growth.