Five: The Figure to Decode China’s Future

Effects Burgeoning

The implementation of the five-facet development concept has been showing early results in the past year, as can be seen in the following aspects.

First, innovation is blooming. China’s“Internet Plus” program, big data strategy and the“Made in China 2025“ plan are proceeding at a rate of knots; six more national innovation demonstration zones have been opened; the share of research & development funding in GDP has risen to 2.08 percent; and the contribution rate of science & technology to economic growth now stands at 56.2 percent.

Staff members at Qingdao-based Offshore Oil Engineering Co., Ltd. walk past one of the company’s modular oil refining vessels on June 30, 2017.

Second, development is more synchronized and balanced. The three major initiatives – Belt and Road, integration of the Beijing-Tianjin-Hebei region, and the Yangtze River Economic Belt – have started in a deluge of major projects in this regard. The development gap between eastern, central and western provinces is narrowing. And more reform policies on new urbanization have been introduced.

Third, green development is advancing. China is building pilot zones for ecological advancement, and ramping up efforts to alleviate air pollution. As a result, the emissions of sulfur dioxide and nitrogen oxide have fallen by 5.6 percent and 4.0 percent respectively. The share of clean energy in national energy consumption has edged up by 1.7 percentage points, and the consumption of coal down by two percentage points.

Fourth, opening-up is reaching a higher level. As we push ahead with the Belt and Road Initiative, we work to increase complementarities between the development strategies of, and practical cooperation between, China and other countries along the routes. The Chinese currency – the Renminbi (RMB) – has been included in the basket of currencies which make up the IMF’s Special Drawing Rights (SDR). The country has recently established another12 cross-border e-commerce pilot zones and seven new free trade zones following the success of the Shanghai Pilot Free Trade Zone. The requirements for review and approval for setting up and making significant adjustments to foreign enterprises have been replaced by a simple filing process, with the exception of a few areas where special market access regulations apply.

Fifth, people are feeling a stronger sense of benefit. The Chinese population living in poverty has been shrinking by 1.24 million year-on-year. The state invests generously in disaster aid and recovery, employment and education. Significant progress has been made in public health services and cultural services at the community level.