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

Missouri Town Braces for Possible Racial Unrest

Situation in Ferguson hinges on whether white police officer will be indicted for August shooting death of unarmed black teen More

Video Ukraine Marks Anniversary of 1930s Deadly Famine

President Poroshenko compares Soviet-era ‘genocide’ to current tactics of pro-Russia rebels in Ukraine's east More

S. Philippines Convictions Elusive 5 Years After Election-related Killings

Officials vowed to deliver justice as the nation marked the anniversary of the country's worst political massacre that left 58 dead, more than half media 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.
New Skateboard Defies Gravityi
X
November 21, 2014 5:07 AM
A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Gay Evangelicals Argue That Bible Does Not Condemn Homosexuality

More than 30 U.S. states now recognize same-sex marriages, and an increasing number of mainline American churches are blessing them. But evangelical church members- which account for around 30 percent of the U.S. adult population - believe the Bible unequivocally condemns homosexuality. VOA's Jerome Socolovsky reports that gay, lesbian, bisexual and transgender evangelicals are coming out. Backed by a prominent evangelical scholar, they argue that the traditional reading of the bible is wrong.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Mexico Protests Escalate Over Disappearances

Protests in Mexico over 43 students missing since September continue to escalate, reflecting growing anger among Mexicans about a political system they view as corrupt, and increasingly tainted by the drug trade. Mounting outrage over the disappearances is now focused on the government of President Enrique Pena Nieto, accused of not doing enough to end insecurity in the country. More from VOA's Victoria Macchi.
Video

Video US Senate Votes Down Controversial Oil Pipeline - For Now

The U.S. Senate has rejected construction of a controversial pipeline to transport Canadian oil to American refineries. The $5 billion project still could be approved next year, but it faces a possible veto by President Barack Obama. As VOA’s Michael Bowman reports, the pipeline has exposed deep divisions in Congress about America’s energy future.
Video

Video Can Minsk Cease-fire Agreement Hold?

Growing tensions between government troops and separatists in eastern Ukraine further threaten a cease-fire agreement reached two months ago in the Belarusian capital of Minsk. Critics of U.S. policy in Ukraine say it is time the Obama administration gives up on that much-violated cease-fire and moves toward a new deal with Russia. VOA's Scott Stearns has more.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.
Video

Video Ferguson Church Grapples with Race Relations

Many white residents of Ferguson, Missouri, say they chose to live there because of the American Midwest community's diversity. So, they were shocked when a white police officer killed an unarmed black teenager in August – and shaken by the resulting protests and violence. Some local churches are leading conversations on how to go forward. VOA’s Ayesha Tanzeem reports.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8050
JPY
USD
117.90
GBP
USD
0.6376
CAD
USD
1.1259
INR
USD
61.655

Rates may not be current.