At present, the profound impacts of the international financial crisis are lingering and the world economy is still in a period of deep adjustment. As the second largest economy in the world, any move China makes attracts the world's attention. Many countries are more concerned about in which way China, which is facing downward pressure, will develop its economy and whether it can maintain medium-to-high growth and continue to create development opportunities for other countries.[Special coverage]
As 2016 marks the first year when China enters the crucial period of fulfilling the task of building a moderately well-off society in an all-round way as well as a significant year for China to promote economic restructuring, the annual two sessions, of course, become the best occasion for other countries to observe China's economic situation. Reports by famous international institutions and media recently demonstrate their concerns.
Economic reform has seen initial success.
In order to make China's economy and even the global economy develop more steadily and robustly, China decided to implement structural reform, making efforts to cope with deep-rooted and middle-and-long-term problems of its economy. Foreign media hold that China's structural reform has achieved initial success, fundamentally improving economic efficiency.
An article published by the U.S. Brooking Institution pointed out that it is good news that China has made a certain achievements in economic structural reform. Up to now, economic news from China is generally positive. China needs to transform its growth model with high proportion of investment into a more stable growth model and further focus on supply-side innovation and consumption. The adjustment is being slowly carried out, and consumption is accounting for more in China's GDP. It will benefit China's continuing economic growth, and the global economy will also benefit from China's economic transition.
Japanese Manichi Shimbun (National Daily) believed that although economy in China's northern areas based on heavy industry is in recession, the economy is booming in its southern areas whose "new economy" with service as the core is very active. The direction and goal of the "New Normal" proposed by China's government are correct, and people should evaluate Chinese economy from a comprehensive perspective instead of only growth rate.
Target of China's economic growth is rational.
The growth target for 2016 was set at 6.5%～7% in the government work report delivered by Premier Li Keqiang at the annual two sessions. Actually, considering the enormous size of the Chinese economy, each percentage point of its GDP equals 1.5 percentage points of five years ago or 2.5 percentage points of ten years ago. Overseas public opinion believes that the target this year is flexible, which demonstrates China's determination of transition as well as its flexible policies.
The New York Times believed that it is a correct step for China to change the target of its economic growth from a specific figure to a range. The Wall Street Journal thought that as China is facing heavy downward pressure, it conforms to the universal expectation for the Chinese government to lower its target of growth so as to carry out structural reform and cope with global economic recession. British Financial Times pointed out that the target is widely endorsed by international economists, which demonstrates that Chinese government is making efforts to balance Chinese economic growth and reform. Associated Press held that the target range showed Chinese government's wish for eliminating concerns in the market and restoring confidence as well as its determination to maneuver economic transition.
Fiscal and monetary policies get endorsements.
As a significant part of the "visible hand", fiscal and monetary policies have always attracted much attention. Foreign media analyzed and praised relevant points in the government work report, like budgetary deficits, value-added tax (VAT) reform and monetary policies. Japanese Yomiuri Shimbun holds that China expands financial expenditure and implements financial policies to realize stable growth target and stabilize the market.
As for China's VAT reform that substitutes value-added tax for business tax in all industries, Press Trust of India quoted analyst's opinion that the VAT policy is crucial for China, which can improve the efficiency of tax structure and reduce tax burdens, making China one of the countries with the most advanced VAT regimes.
Chinese economy will continue to benefit the world.
British Broadcasting Corporation (BBC) believed that the statements of Xu Shaoshi, head of the National Development and Reform Commission, about China's economic situation were tailored to popular concerns and passed the signal of confidence and resolve to conduct economic transition.
The World Bank holds that China is a significant engine driving global economic growth. Statistics shows that from 2009 to 2014, with an average annual GDP growth of 8.7%, China's contribution to global economic growth reached 30%, while the average global economic growth is only 2%. In 2015, China, whose GDP grew 6.9%, remained one of the largest and fastest-growing economies, contributing 25% of global economic growth.
