In a Changing Climate Progress in China Remains Stable

Estimated reading time: 2 minutes

The recent conference held by the Political Bureau of the Communist Party of China (CPC) Central Committee focused on the analysis of China's current economic situation. It pointed out that China's economic performance "has remained stable despite some changes, with new problems and challenges emerging amid notable changes in the external environment." The "notable changes in the external environment" mainly refers to the escalating trade tensions between China and the United States.

In a trade war, no one can win and both sides will suffer losses. The data shows that in the first half of this year, the U.S. trade deficit with China has not narrowed as expected, but actually increased by nine percent over the same period last year - surpassing $185.7 billion. It is expected that the trade deficit will further increase by the end of the year. As for China, the trade war may take it 5 to 10 years to deal with the consequences.

There is an old Chinese saying that "every man in the street is aware of Sima Zhao's intent," meaning that the bad intentions are obvious to all. The United States started the trade war, putting rules, morality, its dignity as well as its own interests aside, solely in an attempt to stop or at least slow down China's progress. This intent is clear to both countries and to the rest of the world.

Since the trade war has started and continues to escalate, there is no way to turn back. The most important thing for China is to maintain its resolve, be aware of its strengths and weaknesses, and have a clear understanding of the problems its economy faces, or, as Chinese President Xi Jinping put it, we should "focus on running our own affairs."

China has huge potential in its economy, boasting a wide-ranging domestic market, a large population, and a total consumption value of US$5.2 trillion, close to the United States' US$5.6 trillion. China also has a considerable presence in global markets and partners across the world. Based on all these strengths, China will continue to open wider to the outside world and develop diversified markets rather than "putting all the eggs into one basket." China will contribute to global cooperation and development by strengthening cooperation with other BRICS countries, boosting trade and investment with countries along the "Belt and Road," as well as stepping up bilateral, multilateral and regional free trade agreements through further opening up.

Greater openness also requires further reforms. Therefore, China will improve development and innovation capacities for key technologies, enhance protection of intellectual property rights, shut down outdated production facilities, accelerate industrial restructuring, build a rule-based legal business environment and tackle inefficiencies in administrative departments and the public sector. Through substantive reforms, China will further open up and embrace the whole world.

About China.org.cn

Founded in 2000, China Internet Information Center is a key state news website under the auspices of the State Council Information Office, and is managed by China International Publishing Group. We provide round-the-clock news service in ten languages. With users from more than 200 countries and regions, we have become China's leading multi-lingual news outlet introducing the country to the outside world.