Xinhua Insight: China's growth, opening up a boon for world

Economic and social development in the world's second largest economy in the next five years will not only be good for China but also benefit the wider global economy, economists say.

The country's medium-high economic growth, opening of the economy and commitment to win-win cooperation will become a major boon for the world and create a swathe of cooperation opportunities.

China's policymakers are compiling the 13th Five-Year Plan (2016-2020), the development blueprint, and the proposal on the plan was adopted at the Fifth Session of the 18th Communist Party of China (CPC) Central Committee which ended on Oct. 29.

GLOBAL ECONOMIC LOCOMOTIVE

The proposals said China should set a target of "maintaining medium-high growth."

"For China to double 2010 GDP and the per capita income of both urban and rural residents by 2020, annual growth for the 2016-2020 period must be at least 6.5 percent," according to a statement by President Xi Jinping after the meeting.

Given the task of restructuring and gloomy global climate, the Chinese economy is adjusting to a "new normal" state that features lower growth pace but higher efficiency and quality.

The economy expanded 6.9 percent year on year in the third quarter of 2015, the lowest reading since the second quarter of 2009 and prompting concerns that the growth rate may drop even further.

"China is capable of achieving growth above 6.5 percent and having room for economic structural adjustments in the same time," said Chi Fulin, director of the China (Hainan) Institute for Reform and Development."China's growth will continue to provide powerful and sustainable momentum to the world economy."

In the previous five years, China's growth accounted for more than 30 percent of total global growth, higher than the 18 percent contributed by the United States.

Despite the ongoing slowdown, economists believe China will make more contribution in the coming five years as the new five-year plan will bring fresh opportunities.

"Still the driver of the global economy, China will become the world's largest market in the 13th five-year period and its economic upgrade will offer plenty of room for industrial cooperation to emerging economies," said Liu Yuanchun, deputy director of the National Academy of Development and Strategy at Renmin University.

OPENING, REFORM

After over three decades of reform and opening up, China will kick open the economic doors even wider to the world in the coming five years.

Opening up was championed along with innovation, coordinated and green development, and sharing as the engines that will fuel the journey toward achieving the proposals.

The proposals promised further opening-up in the tertiary industry, including banking, insurance, securities and nursing homes; the opening of the capital market wider to overseas investors; make the Chinese currency renminbi, or the yuan, convertible for capital accounts; and expand the investment quota for qualified foreign institutional investors.

China will also promote the "negative list" model nationwide, which is currently only adopted in the country's four free trade zones, Shanghai, Tianjin City and Guangdong and Fujian provinces.

"More investment opportunities will be created amid closer economic ties between China and the world," said Bai Ming, a researcher with Chinese Academy of International Trade and Economic Cooperation with the Ministry of Commerce.

WIN-WIN COOPERATION

In the next five years, China will promote win-win international cooperation in multiple fields, including industry, finance, poverty relief and climate change.

China will continue to promote the Belt and Road through cooperation with countries and regions along the routes, and participate in global industrial and equipment manufacturing cooperation, according to the proposal.

Bai said the cooperation will improve the infrastructure condition and boost economy in those regions and facilitate the global journey of Chinese enterprises.

The proposal also said China will continue to intensify cooperation with international financial institutions, participate into the establishment of the Asian Infrastructure Investment Bank and New Development Bank, and leverage the Silk Road Fund.

In addition, China will actively take international responsibilities and deliver its promises in poverty alleviation and climate change, according to the proposals. Endi