CDF: Showing China’s role in the global economy

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China’s economy is taking on new characteristics, with the emphasis being on quality growth. What does this mean for the country, and how will the change affect interactions with global economies?

On the first day of the China Development Forum (CDF), dozens of sessions were held, covering topics ranging from addressing inequality to enhancing global growth drivers. And officials, think tanks and the business community tried to offer more details on the questions.

Last year, official data showed that consumption contributed to 60 percent of growth, while the service sector took a leading role in the economy. Besides, much of China's new quality growth could come from green energy.

China is the leader of renewable energy, wind power and solar power, and offers tremendous growth opportunities. That is a fact “not many people know,” according to Eric Heitz, CEO & co-founder of Energy Foundation.

VCG Photo

One of the hot topics is China-US relations. Experts say despite the trade frictions, the two sides will eventually come to negotiating table. And Jing Ulrich, managing director and vice chairman of JP Morgan Asia Pacific, said that China and the US are interdependent, and in the end rising tariffs will hurt American interests – who are operating in China.

“In the short run, we may see the situation tightened. But in the long run… China is the largest financier of the US deficit, and American companies have set up operations in China. The US business relies on Chinese manufacturers,” Ulrich explained.

Official data shows China’s foreign trade surplus for goods decreased last year, while the trade deficit for services increased. Experts believe while protective measures may bring a short breather, they also say the open economy will win in the long run.