Restructuring of economy essential
For the first time in three years, China's economy dipped below 8 percent in the second quarter of the year, leading to plenty of pessimistic discussions in the Western media. There is fear overseas that the "below-8" is an omen of China's "economic collapse", something that has also confused some Chinese.
China has long been discussing structural adjustment aimed at slowing down excessively fast economic development.
However, it seems our rationality is not that solid. Although we concede that 7 percent would be ideal after a theoretical assessment, we have become psychologically dependent on a higher development speed.
Admittedly, a fast increase is always somewhat desirable even though it's not cost-efficient, as a fast economy creates plenty of jobs and revenue. But the negative effect accompanying this speed overwhelms its merits.
This forced change of path has been carried forward proactively and in an orderly manner.
The overall speed of 7.8 percent in the first half of the year was still the best result among major world economies, and the other economic figures were not bad either, especially as inflation has been brought under control. The economic slowdown brings a structural reshuffle and prompts the economy onto a healthy path.
Of course, the more China's economy develops, the more conducive it is to bolstering the slumping Western economy, but an abnormally high speed also translates into domestic suffering. The opinion of the West on China's economic restructuring should be taken as nothing more than a reference.
China's economy must create more jobs, boost consumption by increasing individual incomes, and improve social harmony by reducing the income disparity.
Change inevitably causes discomfort, and sometimes doubt and risk. If economic slowdown is implemented in a "democratic" country, these risks may well escalate into a political crisis for those in power. Even now in China, the risk also exists of the move being politicized.
Some people assert that the legitimacy of the Communist Party of China's ruling power comes from its handling of the economy. In fact, it's the same situation in all other countries, too. The difference is that the political system in China encourages the ruling party to work according to the economic rules and secure people's long-term welfare, while Western political parties tend to eye the short-term effects to achieve seemingly prosperous but unsustainable economies, as they don't have to worry about how the situation will develop in the future.
Restructuring is important for China, and once it proves successful, it will bolster China's rise and create new records for all the indicators.
0 comments:
Post a Comment