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.
    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

    Russia's Expat Community Shrinking

    Russia's troubled economy, tensions with West have led hundreds of thousands of foreigners to leave for better opportunities

    Accelerating the Push Against Islamic State: What Will Work?

    Experts stress need to step up military action, address root causes of Muslims' disaffection, counter IS social media messages in a massive way

    Experts: N. Korean Abductions Sought to Halt Brain Drain

    Pyongyang abducted about 3,800 South Koreans and more than a dozen Japanese nationals in late 1970s

    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.
    German Artists to Memorialize Refugees with Life Jacket Exhibiti
    X
    Hamada Elsaram
    February 05, 2016 4:30 PM
    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video German Artists to Memorialize Refugees with Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video Former Drug CEO Martin Shkreli Angers Lawmakers

    A former U.S. pharmaceutical business executive has angered lawmakers by refusing to explain why he raised the price of a life-saving pill by 5,000 percent. Martin Shkreli was removed from a congressional hearing on Thursday after citing his Fifth Amendment right to stay silent. Zlatica Hoke has more.
    Video

    Video Super Bowl TV Commercials are Super Business for Advertisers

    The Super Bowl, the championship clash between the two top teams in American Football, is the most-watched sporting event of the year, and advertisers are lining up and paying big bucks to get their commercials on the air. In fact, the TV commercials during the Super Bowl have become one of the most anticipated and popular features of the event. VOA's Brian Allen has a sneak peek of what you can expect to see when the big game goes to commercial break, and the real entertainment begins.
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Solar Innovation Provides Cheap, Clean Energy to Kenya Residents

    In Kenya, a company called M-Kopa Solar is providing clean energy to more than 300,000 homes across East Africa by allowing customers to "pay-as-you-go" via their cell phones. As Lenny Ruvaga reports from Kangemi, customers pay a small deposit for a solar unit and then pay less than a dollar a day to get clean energy to light up their homes or businesses.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.
    Video

    Video Apprenticeships Put Americans on Path Back to Work

    Trying to get more people into the U.S. workforce, the Obama administration last year announced $175 million in grants towards apprenticeship programs. VOA White House correspondent Aru Pande went inside one training center outside of Washington that has gained national recognition for helping put people on the path to employment.
    Video

    Video New Material May Reduce Concussion Effects

    As the 2016 National Football League season reaches its summit at the Super Bowl this coming Sunday (2/7), scientists are trying to learn how to more effectively protect football players from dangerous and damaging concussions. Researchers at Cardiff and Cambridge Universities say their origami-based material may solve the problem. VOA’s George Putic reports.
    Video

    Video Saudi Arabian Women's Sports Chip Away at Stereotypes

    Saudi Arabian female athletes say that sports are on the front line of busting traditions that quash women’s voices, both locally and internationally. In their hometown of Jeddah, a group of basketball players say that by connecting sports to health issues, they are encouraging women and girls to get out of their homes and participate in public life. VOA’s Heather Murdock reports.
    Video

    Video A Year Later, Fortunes Mixed for Syrians Forging New Lives in Berlin

    In April of last year, VOA followed the progress of six young Syrian refugees -- four brothers and their two friends -- as they made their way from Libya to Italy by boat, and eventually to Germany. Reporter Henry Ridgwell caught up with the refugees again in Berlin, as they struggle to forge new lives amid the turmoil of Europe's refugee crisis.
    Video

    Video Zika Virus May be Hard to Stop

    With the Zika virus spreading rapidly, the World Health Organization Monday declared Zika a global health emergency. As Alberto Pimienta reports, for many governments and experts, the worst is yet to come.

    World Currencies

    EUR
    USD
    0.8923
    JPY
    USD
    117.33
    GBP
    USD
    0.6835
    CAD
    USD
    1.3712
    INR
    USD
    67.695

    Rates may not be current.