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

Egypt's Suez Canal Dreams Tempered by Continued Unrest

Seen as a potential driver of recovery, Cairo’s plan to expand waterway had been raising hopes to give country much needed economic boost More

Ebola Maternity Ward in Sierra Leone First of its Kind

Country already had one of world's highest maternal mortality rates before Ebola arrived, virus has added even more complications to health care More

Malaysia Flight 370 Disappearance Ruled Accident

Aircraft disappeared on March 8, 2014; with ruling, families of 239 passengers and crew can now seek compensation from airline 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.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long-distance communication contains mostly sounds and pictures - for now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid

World Currencies

EUR
USD
0.8815
JPY
USD
117.85
GBP
USD
0.6581
CAD
USD
1.2420
INR
USD
61.404

Rates may not be current.