Why the Chinese Economic development won’t slow down

China’s economy has seen an average annual growth rate of about 10 % for the last three decades, ushering China into the ranks of middle-income countries, which in itself is considered a miracle in the history of world economic development. Its GDP now ranks second in the world and the Chinese people don’t seem to be about to relent on their quest for further economic prosperity.

China’s influence in the world economy was minimal before it initiated economic reforms in 1978 and shifted from a centrally planned to a market based economy. It began to experience rapid economic and social development never seen before. Its great leap forward reflected a shift in economic power as it transformed itself from poverty-hit communist state to global heavyweight.
 

 In a report published by the Paris based Organization for economic cooperation and development, it is expected that China will overtake the United States by 2016 to become the world’s largest economy.  The International Monetary Fund (IMF) also predicted that than China’s economy will be bigger than that of the United States in terms of purchasing power parity.
 

Tom Miller,  a Beijing based economic consultant said “It's realistic to say that within 10 years China will be roughly the same size as the US economy," and according to estimates by the world bank, Goldman Sachs and others, it should happen by 2025. Whereas predictions as to when this may happen vary, many analysts aver that if China remains consistent over time, then this is going to be a reality in the near future. 
 

China’s rise is unavoidable given its resilience and commitment to its economic goals. The country’s potential is immense and its market reforms are not yet complete.  There is still a lot of room for growth which is increasingly being driven by private sector companies. Its future growth driver lies in its consumers who continue to lead the world in consumption.
 

Last year, inbound foreign direct investment into China surpassed $100bn for the first time, and investment overseas by Chinese companies in non-financial sectors totaled $59 billion. To secure sound economic growth, the country is gradually shifting from the traditional growth pattern based on GDP only, to a more sustainable development model. The leaders are emphasizing more investment to increase China's capacity for scientific and technological innovation and an innovation-driven economic growth mode.
 

Over the past 30 years of reform and opening up, under the motivation and inspiration of pursuing dreams, a conducive environment for success has been created and the nation is highly optimistic and ready to do whatever it takes to achieve the “Chinese dream” which emphasizes economic prosperity.
 

The Chinese dream aims at making China a “moderately well-off society” by about 2021and making China a fully developed nation by about 2049. This is a good incentive that is already planted deeply within the Chinese people’s hearts considering their history of meeting set out goals and China’s reforms over the past three decades.

 

The new leaders of China have promised to deliver the arduous task of pursuing these economic goals with the necessary policies already in place and ready to be implemented. In their report to the 18^th National congress, the country set the goal of doubling China’s GDP of 2010 and the per-capita income of urban and rural residents by 2020. 
 

This is the first time that the Communist Party of China (CPC) has included per capita income in its 2020 development blueprint of a moderately prosperous society. Previous targets only focused on GDP growth. This is an ambitious goal but considering China’s economic miracle in the last decade, it is possible that the Chinese leadership will deliver. 
 

The per-capita disposable income of urban residents in China rose 8.4 percent in 2011 from a year earlier while the per-capita net income of rural residents grew 11.4 percent over the same period. With that, China will definitely continue to serve as a global economic powerhouse. 
 

Despite the global economic slowdown, the CPC has promised to make this goal a reality by 2020. When the goal is realized, the 1.3 billion Chinese people will join the group of fewer than 2 billion people worldwide who currently enjoy the standard of living as envisioned in a moderately prosperous society.

CPC leaders have acknowledged that rapid economic rise comes with a lot of challenges as well, including high inequality; rapid urbanization; challenges to environmental sustainability; and external imbalances that require policy adjustments for China’s growth to be sustainable.
 

In its 12th Five-Year Plan (2011-2015), the government forcefully addresses these issues. It highlights the development of services and measures to address environmental and social imbalances, setting targets to reduce pollution, to increase energy efficiency, to improve access to education and healthcare, and to expand social protection. 
 

China’s new leaders are devoted to this economic goal and have vowed to build on the achievements of their predecessors to scale the new heights. This reflects the Chinese nation’s everlasting spirit of unity of purpose among the Chinese people and its leaders; a laid down solid, material foundation for realizing economic prosperity. For now, the China economic dream is no longer a grand slogan. It is rooted in reality, as a result of real struggles, hard work and preparation for future success.