I'm Robert Lawrence Kuhn and here's what I'm watching on New China's 75th anniversary: China's economic miracle, - the astonishing increase of the standards of living of 1.4 billion people. Disposal personal income in China, a good test, rose from 171 yuan, or about US$108 in 1978, after the ruinous Cultural Revolution, to nearly 40,000 yuan, or about US$5,500 in 2023 - a leap of about 228 times in yuan terms, and about 50 times in U.S. dollar terms.
When China's reform and opening-up policy began, the country was among the poorest in the world, with a per capita GDP less than one-third of the average of African countries, and from 1978 to 2023, the country sustained the longest and greatest economic growth in human history - the average annual economic growth rate over these 45 years was an unprecedented 8.9%. In the annals of human economics, no country has ever achieved such high-speed and unceasing economic growth for such a long period. During this period, more than 770 million of China's rural population living below the current poverty line have been raised from poverty. Urbanization increased from under 20% in 1980 to over 65% in 2023. China learned to feed nearly 20% of the global population with under 10% of the world's arable land.
In every category of living, the Chinese people have enjoyed spectacular improvement. In 2008, high-speed railways were barely more than 1,000 kilometers, now they exceed 45,000 kilometers, more than 70% of the entire world. Modern agriculture and biological breeding have provided food security. Healthcare and hospital reform, and national medical insurance, have substantially improved people's health. Green and low-carbon technologies have reduced pollution. From 2013 to 2022, China added 130 million new urban jobs, an average of 13 million per year, and the world's largest social security system has been built, improving people's well-being and sense of security. As of September 2023, the number of participants in basic pension, unemployment and work-related injury insurance nationwide is 1.06 billion, 240 million and 300 million respectively. Social security card holders number 1.377 billion, covering 97.4% of the population.
Although the road has not been straight, and there have been obstacles and delays, challenges and setbacks,accomplishments have been remarkable. Rightly proud of its achievements, China is not sitting satisfied. There are serious challenges, especially because China's investment-led economy, primarily infrastructure and property construction, which drove growth for over two decades, faces long-term slowdown. In 2023, fixed capital formation was still above 40% of GDP, which is no longer sustainable or desirable. The continual flows of credit from China's financial system can no longer support such levels of fixed-asset investments, especially given leadership's commitment to reduce financial risk. That's why, looking to the future under President Xi Jinping, the country is pivoting towards prioritizing Chinese modernization through high-quality development and new quality productive forces, especially in science and technology.
China's current GDP accounts for nearly 17% of the world's total GDP. China's leaders have set the country's GDP growth target at around 5% for the past two years. What does this mean? China's 5% growth can contribute more than 30% of the world's growth, thus benefitting the world as well as its own citizens.
I'm keeping watch. I'm Robert Lawrence Kuhn.
Script and Presenter: Robert Lawrence Kuhn
Producer: Yang Yutong
Video Editor: Hao Xinxin
Graphic Designers: Ding Shuyao, Zhang Ruixin
Executive Producer: Sun Lan
Chief Editor: Ren Yan
Supervisors: Xiao Jian, Adam Zhu
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