China’s long-term vision for sustainable economic growth

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China’s economy has grown at a medium-to-high rate since 2012, targeting long-term, quality development through structural changes and new growth drivers.

The country’s average annual growth rate of GDP was 7.2 percent from 2013 to 2016, the highest among major economies and 4.6 percentage points higher than the combined global average, the National Bureau of Statistics (NBS) said in October ahead of the 19th National Congress of the Communist Party of China (CPC).

Better livelihoods

Chinese citizens’ livelihoods have steadily improved since 2012, according to NBS data. The national disposable income per capita was 23,821 yuan (3,621 US dollars) in 2016, an increase of 7,311 yuan (1,111 US dollars) compared to 2012, with an annual average growth rate of 7.4 percent.

In 2016, the national Engel’s coefficient — which calculates the proportion of income spent on food — was 30.1 percent, down 2.9 percentage points from 2012. The rate is approaching the United Nations’ well-off range of 20 to 30 percent.

Progress was also made in the implementation of a basic health insurance program. Personal health payments dropped to less than 30 percent of total health expenditure in 2016. Basic healthcare has achieved full coverage, and a social security system covering both urban and rural residents has been established.

Based on a sample survey, the national unemployment rate was around 5 percent in 2016 and 2017. Over 100 million people in overcapacity positions have switched employment due to innovation and entrepreneurship policies.

More consumption

China’s economic structure has been optimized, with consumption becoming the main driving force of China’s economy, contributing an average annual rate to economic growth of 55 percent between 2013 and 2016, 8.5 percentage points higher than that of investment.

The country’s services sector now accounts for more than half of GDP, with annual average growth at 8 percent between 2013 and 2016. The tertiary industry occupied 51.6 percent of GDP in 2016, 6.3 percentage points higher than that in 2012.

Meanwhile, industrial upgrading is reflected in high-tech industries, strategic emerging industries, and equipment manufacturing, which have maintained growth rates of at least 10 percent for the last five years.

Green development

China has proposed a new concept of green development since the 18th National Congress of the CPC. Achievements have been made in energy conservation and new energy development, environmental protection, and governance of the ecological environment, NBS data showed.

In 2016, energy and water consumption per unit of GDP declined by 17.9 percent and 25.3 percent respectively compared to 2012, and electricity generated by nuclear energy, wind power, and solar energy increased by 167.6 percent, 140.1 percent, and 21.4 times respectively.

In 2015, chemical oxygen demand emissions decreased by 8.3 percent from 2012, while in the same period ammonia emissions decreased by 9.3 percent, sulfur dioxide emissions fell by 12.2 percent, and nitrogen oxide emissions reduced by 20.8 percent.

China’s completed afforestation area in 2016 was 7.2 million hectares, an increase of 28.7 percent compared to 2012. The soil erosion area under control reached 5.62 million hectares in 2016, 28.6 percent more than in 2012.

The treatment rate of municipal solid waste was 96.6 percent at the end of last year, an increase by 11.8 percentage points compared to 2012. The greening rate in urban built-up areas was 36.4 percent, an increase of 0.7 percentage points from 2012.