Chinese economy remains stable, resistant to uncertainties

The skyline of Shenzhen is seen on Aug 8, 2017. [Photo/VCG]

The latest macroeconomic data for May showed China's economy continued to maintain an overall stable and positive outlook. The positive signals sent out by the production and consumption end showed strong resilience of China's economic development, indicating the country's resistance to any uncertainties, Xinhua reported.

China's industrial production is currently stable, with room for further boosting domestic demand, said Liu Feng, chief economist with China Galaxy Securities. "The inflation is mild and consumption is stable. With further expanding domestic demand, the country can effectively offset the trade war impact on imports and exports," he added.

Industrial production was stable and the service sector developed rapidly. In May, the added value of industries above a designated scale grew by 6.8 percent year-on-year, with a 0.3 percentage points increase in growth speed from the previous year. The national service sector production index rose 8.1 percent on a yearly basis, with a 0.1 percentage points increase in growth speed monthly.

Investment, consumption and export demand remained steady. Retail sales rose 8.5 percent in May from a year earlier. China's fixed asset investment grew by 6.1 percent on a yearly basis through to May this year. Total imports and exports rose 8.6 percent in May from a year earlier, with a 1.5 percentage points increase in growth speed monthly.

A research report from Guotai Jun'an Securities shows that total productivity of the economy will continue to improve in the next few years. According to China's 13th Five-Year Plan, China's R&D spending will account for 2.5 percent of GDP in 2020. The country's emerging industries are bound to maintain rapid development in the next three years and ultimately dominate the entire economy.

As an important manifestation of economic vitality, the old and new drivers of growth are shifting more rapidly. The added value of high-tech manufacturing increased by 12 percent in the first five months, and that of the equipment manufacturing industry increased by 9.3 percent, maintaining a fast growth momentum. The growth of modern services is equally impressive, with revenues from the strategic emerging services sector rising more than 18 percent through to April.

The policy of expanding opening up is conducive to the improvement of industrial international competitiveness and the birth of domestic leading enterprises. China's economy is resilient and its macro policies are more flexible. By increasing reform and opening up, the country's economy will steadily move towards a higher quality stage, said Liang Hong, chief economist of China International Capital Corp.

"China has reduced tariffs on goods such as cars and daily necessities since the beginning of this year, and is working with countries around the world with an opener attitude, said Li Xunlei, chief economist of Zhongtai Securities. "These all provides a good external environment for the high quality development of Chinese economy," he added.