On July 7, the 2018 APEC China CEO Forum was held in Beijing. Zheng Xinli, Vice Chairman of the China Center for International Economic Exchanges and former Deputy Director of the Policy Research Office of the CPC Central Committee, gave a speech entitled “The New Cycle and New Opportunities of China’s Economy in the Next Decade”, saying that China’s development goals for the next decade will certainly be realized, and the US-China trade war will not be able to stop China’s modernization.
In his view, China faces four major development opportunities in the next decade, which are based on the expansion of domestic demand rather than the export scale. Specifically, there are four areas of economic growth.
The first opportunity is to implement the rural revitalization strategy. In the next ten years, we will implement the rural revitalization strategy successfully by establishing a modern property right system in rural areas, allowing the market to play a decisive role in resources allocation, and especially reforming the rural land system.
“I believe that China’s urban and rural areas will undergo significant changes in the next decade, farmers’ income will increase rapidly, the urban-rural income gaps will shrink dramatically, and the rural areas may become better living places and more beautiful than cities,” said Zheng Xinli. Moreover, he believes that the simultaneous implementation of agricultural modernization, new rural construction, urbanization of migrant workers, and the construction of featured towns will create huge demand for investment and consumption and hence become a great momentum for a healthy and sustainable Chinese economy in the next ten years.
The second development opportunity is the service industry. Although the quality of the primary and secondary industries will be improved in the next decade, the major growth points of China industrial development will not come from the primary and secondary industry but the tertiary industry.
The third development opportunity is the new generation of Internet and the digital economy. The launch of the 5G network and super WIFI has laid a solid foundation for the development of the digital economy and China’s digital economy has surpassed the United States in some areas. So long as an industry can be connected with the internet and become part of the digital economy, then the industry will experience unimaginable growth.
The fourth development opportunity is the general aviation industry. At present, the scale of China’s railway, highway, and shipping networks has surpassed that of the United States. In terms of the general aviation industry, however, China is far behind the United States, which represents huge potential for China because of the general aviation industry worth trillion of dollars.
Zheng Xinli said that if we can seize the four development opportunities above and boost China’s economy with these four engines simultaneously, China will have no problem to maintain a growth rate of more than 6.5%. Trump wants to punish China’s trade and disrupt China’s modernization process, this is impossible.