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China all set to change its development model from 2021: Xi Jinping – Times of India


BEIJING: Chinese President Xi Jinping mentioned on Thursday that China is about to alter its development model from subsequent yr, relying extra on home consumption than export-reliant development which propelled it to turn into the world’s second largest financial system subsequent solely to the United States.
“From next year on, China will embark on new journey toward fully building a modern socialist country,” 67-year-old Xi mentioned whereas addressing the Asia-Pacific Economic Cooperation (APEC) CEO Dialogues through video hyperlink.
“We will foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other,” he said.
“The new growth paradigm is a strategic resolution we now have made primarily based on the present stage and circumstances of growth in China and with full consideration given to financial globalisation and adjustments within the exterior atmosphere,” he said.
Last month, a key conclave of the ruling Communist Party of China (CPC) headed by Xi adopted his proposals for the formulation of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035.
While the 14th Five-Year plan envisages a massive overhaul of the country’s domestic market to boost consumption in order to reduce China’s reliance on shrinking exports markets, the Vision 2035 visualises a long-term plan, reflecting the development vision of Xi.
China’s status as a world’s factory has been affected by declining global markets and US President Donald Trump‘s commerce struggle as effectively his transfer to ban Chinese tech firms like Huawei, TikTok.
The US also recently clamped restrictions on exports to Semiconductor chips to China, deepening the technology conflict between world’s top two economies.
China expects that hostility with the US would continue under President-elect Joe Bidden tenure as well though Chinese experts believe some buffering period.
Explaining the reasons for the paradigm shift in China’s development model, Xi in his address said the model of reliance on foreign markets and resources has gone through some gradual changes.
“The ratio of international commerce to GDP dropped from 67 per cent in 2006 to lower than 32 per cent in 2019, whereas the ratio of present account surplus to GDP has come down from 9.9 per cent in 2007 to lower than one per cent immediately,” he said.
“In seven years for the reason that 2008 international monetary disaster, the contribution of China’s home demand to GDP exceeded 100 per cent, making home consumption the primary driver of its development,” he said.
China’s per capita GDP has topped $10,000 and its middle-income population has exceeded 400 million. It is projected by many international institutions that China’s retail market will reach $ six trillion in size this year, he said.
Xi said the new development paradigm will enable China to fully unlock its market potential and create greater demand for other countries.
“As China’s financial system grows, our individuals naturally need to lead a good higher life. This will create extra demand for a higher number of high quality merchandise, applied sciences and providers from the world over,” he mentioned.

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