Press Release on China's Current Economic Development
2013/08/02

Press Release

Chinese Embassy in India

China’s Current Economic Development

According to the National Bureau of Statistics(NBS), China's gross domestic product (GDP) growth stood at 7.6 percent in the first half year of 2013, 7.5 percent in the second quarter from 7.7 percent in the first three months, totaled 24.8 trillion yuan (4 trillion U.S. dollars).

The latest GDP figures headed a string of other data. Industrial output increased 9.3 percent year on year in the first half of 2013, while the growth of fixed-asset investment, a measure of government and private spending on infrastructure, stood at 20.1 percent during the period, down 0.8 percentage points over the first quarter of the year.

The growth rates of imports and exports of China underwent a significant slowdown. According to the statistics of customs, in the first half of 2013, the import and export value of China amounted to12.51 trillion RMB (equivalent to 1.9977 trillion USD), 8.6% up on a year-on-year basis after excluding currency factors.

Data showed that consumption contributed 45.2 percent, investment 53.9 percent and net exports 0.9 percent to first-half GDP growth.

In general, the Chinese economy has maintained steady growth since the beginning of this year amid complex and challenging domestic and international environments. The economic growth rate is at a reasonable range. The price and job opportunities remain stable. We always give balanced consideration for stable growth, inflation control, risk prevention, and the promotion for further reform, adjustment of economic structure, and benefit of the people.

While taking control of the policies and the overall trend, we will continue to deepen reform and opening-up, to actively promote the restructuring and upgrading of the economy and the change for government functions, so as to accumulate the dividends of the reform, the potentials of domestic demand, and the dynamisms of innovation, which will further enhance the internal strength for development and the ability to withstand risks.

For example, a series of new policies on regulations will inject new impetus into restructuring and stabilizing China’s economy and enhance endogenous driving force for the growth of its real economy in the long run.

The central authorities decided to eliminate a number of systematic obstacles in economic transformation and upgrading. They include exempting value-added tax (VAT) and profit tax for the micro and small-sized enterprises (MSEs).

This move will ease the tax burden of more than six million MSEs, save them 20 billion yuan in expenditure while creating jobs and raising income for tens of millions of people.

To coordinate with the tax policy, China will boost foreign trade and exports through gradually simplifying customs clearance processes by the scheme of "one-time declaration, one-time inspection and one-time clearance".

In addition, China will boost foreign trade and exports through adjusting operational fees; encouraging financial support for profitable companies; facilitating the exports of private SMEs; providing zero tariffs for exporters in the service sector; increasing imports and maintaining a stable yuan exchange rate.

China will fully open the market of railway construction, helping private capital available to invest in inter-city and municipal railways.

The move could diversify financing channels and attract more social capital for construction projects after abolishing monopolies and investment barriers, analysts held.

Also, China's central bank has canceled the ceiling limit for banks' lending interest rates, scrapped the controls on bill discount rates to let the financial institutions make their own rates decision according to commercial principles.

China has the conditions and ability to achieve the main objectives of economic and social development this year, and also pays great attention to improving the quality and efficiency of development, going on a better and more far-reaching way of sustained and healthy development in the future.

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