Full Text: China and the World in the New Era
II. China's Development Is an Opportunity for the World
With the rapid increase of China's comprehensive national strength and international influence, some people worry that China will fulfill the outdated expectation that a country will invariably seek hegemony when it grows strong, so they have created what they call the "China threat" theory. The causes of this theory include cognitive misunderstanding, deep-rooted prejudice, a psychological imbalance brought about by the prospect of falling power, and deliberate distortions by vested interests. To realize national prosperity, rejuvenation, and people's happiness is a dream shared by the Chinese with peoples of other countries. Rather than a threat or challenge, China's development is an opportunity for the world.
1. China is the main stabilizing force and power source of the world economy
From 1979 to 2018 China's economy grew rapidly at an average annual rate of 9.4 percent, and became an important engine of global economic growth. In 2008, the world suffered a serious financial crisis and the world economy was hit hard. Through a series of effective measures to deal with the crisis, China's economy recovered rapidly and continued to maintain a medium- and high-speed growth. As a result, China became the main stabilizing force and power source of the world economy.
China is the biggest contributor to world economic growth. Since the 18th CPC National Congress in 2012, China has implemented the concepts of innovative, coordinated, green, open and inclusive development. It has adapted to, steered, and led the new normal of economic development, strengthened supply-side structural reform, and maintained a sustainable and healthy economic development with increasing quality and efficiency. In the past three years, China's economic aggregate has exceeded RMB70, 80, and 90 trillion successively, accounting for nearly 16 percent of the world economy. From 2013 to 2018, China contributed more than 28 percent of world economic growth on average. Estimates show that without China, the average annual growth rate of the world economy from 2013 to 2016 would have slowed by 0.6 percentage point and the intensity of fluctuation would have increased by 5.2 percent. According to a report released by the McKinsey Global Institute (MGI), the aggregate index of the world's exposure to China's economy gradually rose from 0.4 to 1.2 between 2000 and 2017, with China accounting for 35 percent of global manufacturing output. 5
China's scientific and technological innovations have injected new momentum into world economic growth. In recent years, investment in the field of science and technology in China has been increasing, and major scientific and technological innovations have emerged. In 2018, China's R&D spending accounted for 2.19 percent of GDP. According to the Global Innovation Index (GII) released by the World Intellectual Property Organization (WIPO6) and other organizations, China continued its rise in 2019, moving from 17th in 2018 to 14th (see Box 5); it is the only middle-income economy in the top 20.6In the field of high technology, China is catching up and getting ahead. Quantum communications, supercomputing, aerospace, artificial intelligence, fifth-generation mobile network technology (5G), mobile payment, new energy vehicles, high-speed rail, and financial technology are sectors in which China leads the world. China's innovations in science and technology have been widely applied, bringing more convenience to the work and daily life of people of other countries, and injecting new momentum into world economic growth.
In the future, China will become more prominent in its role as a stabilizing force and power source. Currently, the world economy lacks momentum for growth, and the solidity of the Chinese economy is becoming more and more important to the world. China's economy is changing from high-speed growth to high-quality development, and new industrialization, information technology application, urbanization and agricultural modernization are gathering speed. The economic structure is undergoing a profound adjustment, industrial upgrading is continuing, and new economic growth areas are constantly emerging. The urbanization rate of permanent residents reached 59.6 percent in 2018 and will increase steadily. The number of permanent urban residents will continue to increase. This will bring a wide range of needs in various areas, such as infrastructure, real estate, new retail, medical treatment and public health, education, culture and entertainment, and provide an important engine for economic development. New industries and business forms are emerging. In 2018, the added value of high-tech manufacturing increased by 11.7 percent over the previous year. Corresponding figures for strategic emerging industries and equipment manufacturing were 8.9 percent and 8.1 percent. New energy vehicles, intelligent televisions, lithium-ion batteries and integrated circuits increased by 66.2, 17.7, 12.9 and 11.2 percent, respectively. The growth rate of the information service industry is as high as 30.7 percent, and the growth rate of mobile games, online shopping, ride-sharing platforms, travel platforms, big data cloud computing and other sub-industries is 30 to 50 percent. Each sub-industry has given birth to a number of "unicorn" enterprises. According to an MGI report, by 2040, the integration between China and the rest of the world is expected to drive economic value of US$22 trillion to US$37 trillion, equivalent to 15 to 26 percent of global GDP. Strengthened cooperation between China and other countries will create enormous economic value. 9
China's economy and the world economy have undergone structural changes and are deeply integrated. China, which has a more stable economy, higher quality of growth, and promising growth prospects, contributes to the development of the world economy in the long run (see Box 6). It is both unrealistic and harmful to regard China's economic development as a "threat" or "challenge" and try to squeeze China out of the global industrial chain, supply chain and value chain so as to "detach" China from the world economy.
2. All-round opening up creates more opportunities for all countries to share the benefits of China's development
China pursues a mutually beneficial strategy of opening up and strives to open up wider. A safe and stable political environment, large consumer groups with escalating needs, hard-working and well-qualified workers, sound and complete infrastructure, and an international and convenient business environment of fair competition under the rule of law, all provide countries with a broader market, more capital, richer products, and more opportunities for cooperation. China has always been an important promoter of global openness and a dynamic market for all countries to expand business opportunities.
China has the most promising consumer market in the world. It is not only "the world's factory", but also a global market. With a population of nearly 1.4 billion and a middle-income group of 400 million, China has the largest market in the world. The sustained and healthy development of China's economy has created extensive demand in many fields and provided an important engine for economic development. China has huge space and potential for consumption, which is clearly moving up market and making a growing contribution to the economy. The consumption growth rate has surpassed that of fixed asset investment, and its gradient effect is prominent (see Box 7). According to an MGI report, China is the world's largest market in many categories, including automobiles, alcohol and mobile phones, accounting for about 30 percent of global consumption.11 Its huge consumer demand provides an enormous market for countries all over the world. In the coming 15 years, China's imports of goods and services are expected to exceed US$30 trillion and US$10 trillion.
China is the most attractive investment destination. It has a workforce of almost 900 million, and more than 700 million are employed. It has a talent bank of 170 million people who have received higher education or vocational education, and generates more than 8 million college graduates each year.
China continues to optimize its business environment, giving foreign manufacturers and investors a broader space and a better business environment (see Box 8). China has implemented a wide range of trade and investment liberalization and facilitation policies, formulated the Foreign Investment Law, and implemented the system of pre-establishment national treatment plus a negative list across the board. It continues to relax market access, and has made great efforts to establish pilots for opening wider to the world.
China has stepped up the protection of intellectual property rights. It has improved the relevant systems, mechanisms, laws and regulations, and enhanced the innovation protection system in line with international economic and trade rules, so as to provide more powerful and effective protection for the investors and IPR holders.
According to the "World Investment Report 2019" of the United Nations Conference on Trade and Development (UNCTAD), global FDI continued its slide in 2018, down by 13 percent from the previous year, but China achieved counter-trend growth and continued as the world's second largest recipient of FDI.12 In the first half of 2019, foreign investment in actual use in China was RMB478.33 billion, an increase of 7.2 percent over the same period last year; foreign investment in high-tech manufacturing and services grew especially fast.
China's further "going global" benefits more countries. Chinese enterprises actively participate in international competition and cooperation, carry out deeper and wider global trade and investment activities, and contribute to the economic growth of host countries and the expansion of local employment. A survey of Chinese investment in Africa by the School of Oriental and African Studies (SOAS) of the University of London shows that more than 90 percent of employees at construction sites and factories run by Chinese enterprises in Ethiopia are local residents. Chinese companies have created a large number of jobs in Africa.14 It is estimated that China's foreign trade in goods will reach US$25 trillion in the next five years. With the country opening ever wider to the world, more and more Chinese enterprises will invest abroad, and more Chinese will study, work and travel abroad. China has actively promoted the "going global" of scientific and technological innovation to the advantage of both China and the rest of the world, and more people can enjoy the convenience and benefits brought about by science and technology (see Box 9).
Opening up should be mutually beneficial rather than a zero-sum game. Only mutual benefit can endure. China is committed to further expanding imports, relaxing market access, improving the business environment, and strengthening the protection of intellectual property rights. Other countries should also open wider to the world and take corresponding measures to improve their business environment. Only by moving towards each other can we create a development environment that is open, inclusive, balanced and beneficial to all, make the "cake" of development bigger, and form a mutually beneficial community of shared interests.
3. China is providing more public goods to the international community
The Chinese have always believed that "You yourself desire rank and standing; then help others to get rank and standing". We care for the people of the world and strive for the greater good while pursuing our own development. China has benefited from the international community for its development, and it has never forgotten to provide it with more and better public goods in return.
We will build a high-quality Belt and Road together with our partners. The Belt and Road Initiative is based on the principles of extensive consultation, joint contribution and shared benefits, and is guided by the Silk Road spirit characterized by peace, cooperation, openness, inclusiveness, mutual learning and mutual benefit. With a focus on policy coordination, connectivity of infrastructure, unimpeded trade, financial integration and closer people-to-people ties, it has transformed from ideas into action, from vision into reality, from a conceptual initiative into a globally popular public product (see Box 10). In November 2016, the United Nations adopted a resolution welcoming economic cooperation initiatives such as the Belt and Road Initiative. In March 2017, the United Nations Security Council called on all countries in its resolution to promote the initiative and the building of a global community of shared future. The Belt and Road Initiative originated in China, but the opportunities and achievements belong to the whole world. According to a World Bank research report, the initiative will help 7.6 million people out of extreme poverty and 32 million out of moderate poverty. It will increase trade in participating countries by 2.8 to 9.7 percent, global trade by 1.7 to 6.2 percent and global income by 0.7 to 2.9 percent.19 The initiative is a veritable road to resource sharing, shared prosperity and common development.
China is building platforms for multilateral dialogue and cooperation. We firmly support multilateralism and advocate that international affairs should be discussed and handled by all countries. China has set up platforms for multilateral dialogue and cooperation in political, economic, security, cultural and other fields. To promote multilateral cooperation, we have established a number of global and regional multilateral platforms including:
Belt and Road Forum for International Cooperation,
China International Import Expo,
Hongqiao International Economic Forum,
Forum on China-Africa Cooperation,
China-Arab States Cooperation Forum,
China-CELAC Forum,
Boao Forum for Asia,
China-ASEAN Expo,
China-Arab States Expo,
China-Africa Economic and Trade Expo,
Conference on Dialogue of Asian Civilizations, and
World Internet Conference.
China has hosted the CICA Summit in Shanghai, APEC Leaders' Informal Meeting in Beijing, G20 Hangzhou Summit, BRICS Summit in Xiamen, and SCO Qingdao Summit, marking a series of pioneering, leading and institutional achievements. We have initiated the establishment of international financial cooperation institutions such as the Asian Infrastructure Investment Bank and the New Development Bank, making a growing contribution to the inclusive development of the world. The China-initiated SCO has played an important role in safeguarding regional and world peace and stability.
China actively participates in international and regional affairs. As a permanent member of the UN Security Council, China strives to contribute wisdom and strength to the settlement of major international and regional flashpoints. China has worked to promote the political settlement of the Korean Peninsula, Iran nuclear, Syria, and Afghanistan issues, and is committed to promoting dialogue and consultation and seeking solutions acceptable to all parties concerned. We have actively participated in the climate governance process of the United Nations and other multilateral platforms, and firmly supported and promoted the implementation of the Paris Agreement. We have promoted and implemented the United Nations Global Counter-Terrorism Strategy and the Security Council counter-terrorism resolutions, and actively participated in international counter-terrorism actions. We have strengthened international exchanges and cooperation in energy, food and network security, and in the polar regions, outer space and the oceans.
China has actively provided aid to countries in need. As a developing country itself, China identifies with other developing countries in terms of the poverty and suffering they are experiencing and provides them with assistance within its capacity. China upholds the greater good and pursues shared interests, adheres to the principles of mutual respect, equality, keeping promises, mutual benefit, and offering the utmost assistance within its capacity. It provides financial, technical, personnel and intellectual assistance to developing countries without any political strings attached, so as to help recipient countries strengthen their capacity for independent development, and to make a greater contribution to promoting their economic and social development and people's wellbeing and achieving the United Nations 2030 Agenda for Sustainable Development.
4. China's development provides experience and reference for other developing countries
It is not easy for a country to find a development path suited to its own national conditions. In the recent past, many developing countries have worked hard in the hope of making themselves prosperous and strong, but few have really found the right path and achieved good development. Some countries blindly copied or were forced to adopt the Western model, but they did not achieve economic development or political stability. Instead they fell into social unrest, economic crisis, governance paralysis, and even endless civil war.
Over decades of arduous exploration, China has always taken its own road and formed its own development path. China's success has boosted the confidence of other developing countries in their ability to achieve prosperity, expanded their routes towards modernization, and provided experience and reference to countries that want to speed up their development and maintain their independence, enabling them to choose a path in line with their own national conditions.
Copying or imitating other countries offers no way forward. The greatest inspiration from China's development is: What kind of path a country takes should be based on the experience of other countries, but more importantly on its own reality, and should be decided by its own people in accordance with its own history, cultural traditions, and level of economic and social development. There is no such thing as one single path or model that is universally applicable. Countries can learn from each other. But modernization is not equal to Westernization, and cannot be mechanically carried out or achieved through the same model. Whether the path of a country is the right one depends on whether this path can solve the historic and practical problems facing the country, whether it can improve people's wellbeing, and whether it can win the recognition and support of the people.
It is the right of every sovereign state to choose its own development path. No country can impose its own model on others, let alone forcibly subvert the governments and political systems of other countries. China respects the different paths chosen by other countries. It does not "import" foreign models, nor "export" the Chinese model, and will never require other countries to replicate its practices. By furthering its own experience, China will continue to explore the laws of modernization, governance and human society, strengthen exchanges with other countries in state governance, and share experience to jointly realize good governance.
5. China will never seek hegemony
It is true that in the past, countries that grew strong have sought hegemony, but this is not a historical law. The conclusion is bound to be absurd and distorted if one judges China against the experience of some Western powers and applies their logic to China. China's pursuit of peaceful development is not diplomatic rhetoric, or an act of expediency, or a strategic ambiguity. Rather, it showcases China's confidence in thought and readiness for practice, and represents China's unswerving strategic choice and solemn commitment. China will never pursue hegemony or expansion, nor will it seek to create spheres of influence, no matter how international situation changes, how China develops itself.
China takes the road of peaceful development, which comes from the profound heritage of Chinese civilization. Chinese civilization originated from inland and farming; it is a moderate and defensive civilization. With a history dating back more than 5,000 years, Chinese culture contains the cosmological view of the unity of man and nature, the international view of harmony between all countries, the social view of harmony in diversity, and the moral view of kindness and benevolence. Since ancient times, China has advocated that "the strong should not oppress the weak, and the rich should not abuse the poor", and "do not do to others what you do not want others to do to you", knowing that "a warlike state, however big it may be, will eventually perish". The Chinese nation does not have the gene to invade others and dominate the world. From the mid-19th century, China was abused by the Western powers and left with indelible memories of the suffering brought about by war and instability. It will never impose the suffering it has endured on other nations.
China's peaceful development comes from its understanding of the conditions for achieving development goals. Development is China's top priority. Over the past 70 years, China has benefited from a peaceful and stable external environment, and in the future it also needs such an external environment. The key to China's success lies in concentrating on running its own affairs well and realizing the mutual promotion of peace and development. Expansion and hegemony go against China's interests and the will of the people. It has always been China's unswerving national will to strive for a peaceful international environment favorable to its own development, and to better safeguard world peace and promote common development through its own.
China's peaceful development comes from a profound understanding of the general trend of world development. Today, countries are becoming a close-knit community of shared interests and future, and peace, development, cooperation, and mutual benefit are the trends of the times. Any country, big or small, strong or weak, can achieve sustainable development only if it participates in international cooperation on the basis of equality and mutual benefit. In contrast, pursuing hegemony and militarism will only consume national strength and lead to decline. In human history, the struggle for hegemony of the major powers has resulted in frequent wars, loss of life, setbacks for humanity, and even the retrogression of human civilization. The lessons have been painful and profound. Peace, development and stability, rather than war, poverty and chaos, are the true aspirations of the people of all countries. China's path of peaceful development is in line with the trend of history and the general trend of the world.
China has the right to development, and its people have the right to pursue a better life. As a country that suffered abuse and humiliation in the past, China aims to win dignity, security and a better life for its people through its own development. China naturally develops and becomes stronger, but does not want to threaten, challenge or replace any other country in the process, nor will it seek hegemony. China's future is in its own hands. It is the Chinese people who decide their own destiny. No one can deprive the Chinese people of their right to pursue a better life. No one can stop China from moving forward.
China is firmly committed to peaceful development and hopes that all countries in the world will do likewise. Only when countries take peaceful development paths can we develop and live peacefully together. China will never develop itself at the expense of others, nor will it give up its legitimate rights and interests. No foreign country should expect China to trade its core interests or to accept anything that is damaging to China's own sovereignty, security and development interests.
5MGI, "China and the world: Inside the dynamics of a changing relationship", July 2019.
6WIPO, Cornell University and INSEAD, "The Global Innovation Index 2019", July 2019.
7Bloomberg News Economy Forum Survey, July 2019.
8KPMG, "The changing landscape of disruptive technologies: Global technology innovation hubs", March 2017.
9MGI, "China and the world: Inside the dynamics of a changing relationship", July 2019.
10World Bank, "Global Economic Prospects: Heightened Tensions, Subdued Investment", June 2019.
11MGI, "China and the world: Inside the dynamics of a changing relationship", July 2019.
12UNCTAD, "World Investment Report 2019", June 2019.
13World Bank, "Doing Business 2019", November 2018.
14SOAS, "Industrial Development, Construction and Employment in Africa", July 2019.
15Statistics from the Department of Agriculture and Rural Affairs of Hunan Province.
16Xinhua News Agency, "Tu Youyou's team resolves artemisinin resistance in malaria treatment", June 2019.
17Huawei, "2018 Sustainability Report", July 2019.
18Huawei website: https://www.huawei.com/cn/press-events/news/2019/6/huawei-ryan-ding-industries-plus-5g.
19World Bank, "Belt and Road Economics: Opportunities and Risks of Transport Corridors", June 2019.