News / Economy

China‘s Economy Keeps 7.7 Percent Growth in 2013

A truck transporting a container leaves the port of Qingdao, in northeast China's Liaoning province, Jan. 20, 2014.
A truck transporting a container leaves the port of Qingdao, in northeast China's Liaoning province, Jan. 20, 2014.
William Ide
Chinese officials say the country’s economy maintained a flat growth of 7.7 percent last year, matching the weakest annual performance since 1999. The slowdown comes as China’s leaders seek to push a wide range of reforms that could slow the country’s growth even further.
 
China’s annual growth for 2013 was still stronger than Japan, the United States or Europe.
 
Chinese officials were quick to put a positive spin on the number, noting that it was still above their projection of 7.5 percent.
 
Ma Jiantan, director of China’s National Bureau of Statistics, said it is no simple task to keep growth at 7.7 percent and the increase in the price of goods at 2.6 percent, but that is what China has done. And it is something that is unique in the entire world, he added.
 
Ma said China’s ability to continue to see stable growth for its economy highlights the effectiveness of the central government’s efforts to promote reform as it gradually adjusts the Chinese economy.

China GDP growth, 2010 - 2013China GDP growth, 2010 - 2013
x
China GDP growth, 2010 - 2013
China GDP growth, 2010 - 2013
Up until recently, the economy was seeing double-digit annual growth, lifted up by heavy investment and reliance on exports. But now, China is seeking to shift away from that model to focus on an approach that is more balanced between exports and domestic demand.
 
They are seeking an economy that relies less on state control and allows market forces freer play.
 
Economists expect  China’s growth  to continue to slow in the coming years, but the rate at which it slows depends on several factors.
 
One of the key challenges this year is managing the country’s rapidly expanding local government debt, analysts say.
 
China says its local governments have amassed about $3 trillion in debt, and the central government is tightening credit and cracking down on unregulated lenders known as shadow banks.
 
Shen Jianguang, an economist at Mizuho Securities Asia, said a big risk for this year is a sharp deceleration in investment. “I think the Chinese government, especially the central bank has a great dilemma now, because on the one hand they need to deleverage and crack down on shadow banking activity, but on the other hand they also need to make sure this isolated credit default event will not evolve into a full blown financial crisis,” said Shen.
 
While reforms could create opportunities, they also could slow growth. China has long pinned its evaluation of local officials on their ability to grow the economy.
 
The central government now is shifting its focus away from economic growth, though, to areas such as environmental protection and local officials' ability to contain debt. That, economists say, also could weaken investment and slow growth.
 
At the same time, analysts say the recovery of the U.S. economy and improvements in Europe could help to breath some life back into China’s exports.
 
In an earlier version of this story we incorrectly reported that China's growth was down slightly from last year. In fact it was flat from last year. VOA regrets the error.

You May Like

Analysis: China Raises Hong Kong Rhetoric to Tiananmen Level

A front-page commentary in The People’s Daily called the current demonstrations 'chaos,' the same word Party officials used 25 years ago to describe the Tiananmen Square protests More

US Airstrikes Anger Syrian Civilians Fleeing Their Homes

Pentagon officials say they have seen no credible evidence of civilian deaths caused by US airstrikes against Islamic State militants More

Child Sexual Exploitation to Worsen in SE Asia

Southeast Asia’s planned economic integration is a key step for boosting the region’s productivity, but carries downsides as well More

This forum has been closed.
Comment Sorting
Comments
     
by: Dorean from: USA
January 21, 2014 10:18 AM
if you believe that - than you are primed for a rude awakening... China is an imploding carcase. it is a diseased imposthumed stinking filth in a vat of corruption.


by: MikeBarnett from: USA
January 20, 2014 2:20 PM
China moves gradually toward a consumer-driven economy. Xinhua reports that retail sales rose 13.1%, almost twice the GDP growth rate of 7.7%. However, the leaders want to take their time because the experience of the EU and the US over the past 14 years does not inspire confidence in an unregulated private sector. The Dot Bomb Bubble of 2000, Corporate Scandals of 2002-2003, and the Financial Scandals of 2008 to the present have caused China's two biggest trade partners, the EU and the US, to inflict recessions and sluggish growth on themselves that have hindered China's growth, so China's economic problems were not caused solely by China.

Further, China has not pursued the two badly fought wars and numerous military interventions that the US and EU have inflicted on themselves. For over 12 years, the US and NATO (EU) have destroyed their computers, cell phones, and digital cameras in their smart munitions; destroyed their ground and air vehicles; burned billions of gallons of their gasoline, diesel fuel, and aviation fuel; wasted billions of their man hours in unproductive work; and inflicted tens of thousands of casualties on themselves and others for which compensation and long term health care must be provided. These costly western conflicts are not the fault of China, but Beijing and Moscow have helped the US and EU avoid expensive debacles in Syria and Iran, so the West has a chance to recover their economies from their military follies. Hopefully, the end of the western quagmires should help China recover its trade with its two biggest trade partners, the EU and the US.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
The Legacy of Jimmy Carter: The Preacher from Plainsi
X
October 01, 2014 10:45 AM
It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video The Legacy of Jimmy Carter: The Preacher from Plains

It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video Hong Kong Protests Draw New Supporters on National Holiday

On the 65th anniversary of the founding of Communist China, Hong Kong protesters are hoping to stage the largest pro-democracy demonstration since the 1989 Tiananmen protests. VOA's Brian Padden visited one of the protest sites mid-day, when the atmosphere was calm and where the supporters were enthusiastic about joining what they are calling the umbrella revolution.
Video

Video India's PM Continues First US Visit

India's prime minister is on his first visit to Washington, to strengthen political and economic ties between the world's oldest and the world biggest democracies. He came to the U.S. capital from New York, the first stop on his five-day visit to the country that denied him an entry visa in the past. From Washington, Zlatica Hoke reports Modi seemed most focused on attracting foreign investment and trade to increase job opportunities for his people.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid

World Currencies

EUR
USD
0.7866
JPY
USD
109.25
GBP
USD
0.6139
CAD
USD
1.1120
INR
USD
61.428

Rates may not be current.