Students claim parcels of products they bought online in the Singles' Day online shopping spree at Shanxi University of Finance and Economics on Nov. 14. New businesses are reshaping China's economy.

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The world economy has been sluggish in 2016, characterized by weak international trade and investment, lack of growth momentum, and low global productivity. Nonetheless, the Chinese economy has managed to sustain robust growth, demonstrating at least 10 highlights in the first year of the country’s 13th Five-Year Plan period (2016-20).

 

Economic growth: Quadrupling GDP ahead of schedule
The Chinese economy ran smoothly in 2016. It is predicted that growth for the entire year will reach 6.7 percent, which is in line with the goal set at the beginning of the year.

It is worth noting that the GDP of 2016 is approximately 4.22 times that of 2000, so the goal of quadrupling the GDP of 2000 by 2020 outlined in the 16th CPC National Congress has been realized four years in advance.

 

Structural upgrading: Transitioning to post-industrialization
In 2016, China’s economic structure was further optimized. The service sector developed rapidly during the 12th Five-Year Plan period (2010-15). The added value of services accounted for 50.5 percent of the GDP by 2015, accounting for more than half for the first time.

In the first three quarters of 2016, the proportion continued to rise to 52.8 percent, and the contribution of services to economic growth rose from 54.1 percent in 2015 to an unprecedented proportion of 58.5 percent, which indicates that the Chinese economy is undergoing the major transition from an industry-led era to a services-dominated one, namely the post-industrialization age.

 

Consumption: World’s second-largest consumer
Consumption has become the greatest driver of domestic economic development. The contribution of consumption to GDP growth jumped from 66.4 percent in 2015 to 71 percent in the first three quarters of 2016.

China now ranks second in terms of the consumption market. With the final consumption expenditure accounting for more than 8 percent of the world’s total, it has significantly narrowed the gap with the United States.

 

New economy: Largest digital dividend
In 2016, new businesses have developed swiftly. China is home to the largest number of online users, creating a tremendous digital dividend for boosting the economy, promoting employment and facilitating public services.

 

Innovation: Most authorized patents
In 2016, remarkable achievements have been made in innovation-driven development. In the first seven months of 2016, the amount of authorized patents grew 49.5 percent. More than 500,000 patents are expected to be authorized in 2016, making China the first country to obtain more than 500,000 authorized patents within a single year.

The explosive development of intellectual property products has provided powerful backing for the innovative growth of the Chinese economy.

 

Entrepreneurship, employment: Most new jobs, market entities
In the first three quarters of 2016, China created 10.67 million jobs in urban areas. The number is expected to exceed 13 million for the whole year. The unemployment rate was 4.04 percent at the end of the third quarter, bringing China to the ranks of major world  economies with the lowest unemployment rate.

On the other side, new business startups have been thriving in 2016.   In the first three quarters, more than 40,000 market entities were registered every day. There have been more than 80 million market entities of various types in China. Chinese entrepreneurs outnumber those in the United States, the European Union and Japan combined.

 

Resident income, poverty alleviation: Growing fast, setting record
In the first three quarters of 2016, urban and rural residents’ per capita disposable income continued to grow, by 5.7 and 6.5 percent, respectively, from the previous quarter in real terms. Growth in disposable income per capita of rural residents outpaced that of urbanites. The income divide between urban and rural residents continued to narrow, with the discrepancy decreasing to roughly 2.8 times.

In 2016, China released a poverty alleviation plan for the 13th Five-Year Plan period. More than 50 million poor people were all registered. It is expected more than 10 million people will shake off poverty by the end of the year, accounting for one-fifth of the goal set by the international community to lift 50 million people out of poverty annually.

 

Environmental protection: Accelerating green development
In the first three quarters of 2016, energy consumption per unit of GDP declined 5.2 percent year-on-year and carbon emissions by 6 percent, hitting the target for the whole year ahead of schedule. The discharge of key pollutants, including chemical oxygen demand, ammonium nitrate, sulfur dioxide and oxynitride, continued to decrease.

Moreover, the coal output decreased 10.5 percent year-on-year, making important contributions to global carbon emission reduction.

‘Going out:’ Widespread foreign investments
In the first three quarters of 2016, China’s foreign direct investment amounted to $134.2 billion, growing 53.7 percent year-on-year and reaching 160 regions and countries around the world. China has become one of the largest foreign investors in the world, creating large amounts of wealth and jobs for related countries.

 

Global governance: ‘China plans’ for the world economy
2016 is the year in which China became a full participant in global governance. It is estimated that China’s contribution to the world economy will account for more than 30 percent, solidifying its status as the most powerful engine of global economic growth.

 

Hu Angang is director of the Center for China Studies at Tsinghua University.