China's contribution to the global economy is growing

In the first half of this year, global economic uncertainties highlighted, greatly affecting investor confidence, but also brought challenges to global economic growth. The International Monetary Fund (IMF) has repeatedly lowered its global economic growth expectations, and the World Trade Organization (WTO) has also lowered its global trade growth expectations in April. What are the prospects for China's economic development as the world's second largest economy? How can China's economy cope with the challenges posed by various uncertainties? 

"In 2018, people are concerned about the future trend of Sino-US trade. Nowadays, more and more enterprises are no longer anxious about Sino-US trade frictions, but take this as the premise to plan the long-term development of enterprises. Ning Gaoning, Party Secretary and Chairman of Sinochem Group, said that more and more Chinese enterprises are aware that the real difficulties and challenges are not from external uncertainty, but the transformation and upgrading they need to carry out. Chinese enterprises are paying more attention to technology and long-term development and planning. Almost every industry is trying to change its development mode and strive for higher quality development.

"The risks facing the operation of the global economy are on the rise, which is certain." Zhu Min, Dean of the National Institute of Finance, Tsinghua University, said that the risk of Britain's "hard disengagement from Europe" has risen; Sino-US economic and trade frictions have eased, but this frictions may be a long-term process; the risk of global financial and economic cyclical downturn is rising, and the frequent interest rate hikes and interest rate cuts by the Federal Reserve have brought great uncertainty to the market. A year ago, one-third thought the world economic outlook would be better, one-third thought the world economic outlook would be worse and one-third remained neutral. But now only 13% think the world economy is likely to be good and 57% think it will be bad. Kevin Snyder, McKinsey's global management partner, said there are many challenges facing the world and uncertainties are increasing. For example, the existing global governance system is facing challenges; the "Millennium Generation" is gradually dominant, and the problem of ageing is becoming increasingly prominent; populism is on the rise; climate change and environmental challenges are increasing; and so on. Faced with uncertainty, we must find new ways to deal with it.

Asia Infrastructure Investment Bank Deputy President Anchorage believes that there are still some uncertainties that people do not realize. It is these uncertainties that make global cooperation even more necessary. Countries must further strengthen cooperation in financial markets, international trade, labour and other fields. Some countries irrationally consider their long-term interests, which will bring more risks to the operation of the global economy.

"China's total economic output accounts for half of the total economic output in the Asia-Pacific region, and its contribution to global economic growth is significantly higher than that of other countries. Many investors hope to expand their investment in China. Their investment focus in China is also undergoing tremendous changes. China's economy is accelerating from export-dependent to innovation-driven. Li Jing, vice chairman of JPMorgan Chase Asia Pacific, said. In the process of China's economic restructuring, the most important thing is to achieve high-quality development of manufacturing industry. In recent years, under the influence of supply-side structural reform and various internal and external factors, manufacturing industry is facing many difficulties and pressures.

"In the past 30 years, all the people who predicted that China's economy would perform poorly have been wrong. China's economic growth momentum is very strong." Ning Gaoning said that China's employment situation is good, as long as full employment can be achieved, GDP growth faster or slower need not be so anxious. Moreover, the current contribution of consumption to GDP growth is also further enhanced. At present, Chinese enterprises pay more attention to R&D, internal governance, investment and development. In the next ten years, the level and quality of Chinese enterprises will be greatly improved, and China will certainly become an innovation-driven country. Ning Gaoning said.

Zhu Min said that China has the largest manufacturing industry in the world, the total manufacturing industry is the sum of the United States, Japan and Germany; China has the most complete manufacturing chain in the world, which is the strongest competitiveness. It should be noted that the scenario facing the development of manufacturing industry is changing. With the advent of artificial intelligence, the path of upgrading manufacturing industry has been changed and the manufacturing industry has been promoted to become intelligent and automated. This is both an opportunity and a challenge for China's manufacturing industry.

Anchorage said that compared with the past, China's economic growth model is more balanced, and domestic demand, especially consumer demand, plays a more significant role in promoting China's economic growth. Although China's economic growth has slowed from more than 10% to about 6.5%, China's economy still contributes a lot to global economic growth.

Li Jing believes that the demand for tourism, education and medical services by ordinary consumers in China has further increased, and China's economy is accelerating its transformation to a service-oriented economy. In the process of consumption development, technology and innovation will become an important support. It is reasonable to believe that China's contribution to global economic growth will be further enhanced in the next five to 10 years.

"Over the years, China's level of opening up has been constantly improving. China has the largest market in the world, and many economies want to participate in China's market and development.