Sustainable Growth in China

China's economic growth over the past few decades is certainly very important. Gross domestic product (GDP) grew at an annual average of 4% from 1978 to 2002, and in 1998 GDP was quadrupled in 1978. Official statistics may exaggerate growth by underestimating inflation, but at least 6% a year is still impressive. Before 1949, per capita GDP was high between 1820 and 1949 and 1978, with annual growth rate of only 3% per capita. China's gross national product (GNP) grew by 2% every year from 1978 to 1990 and grew by 7% per capita from 1982 to 1988, winning the world's best seat.

Over the past 30 years, China has experienced rapid economic growth over a period of time. This produced extraordinary records in the history of the world economy. However, the sustainability of China's economic growth has been suspected for a long time by all political parties. According to Garnaut (2005), the high savings rate and investment rate, the strong national system, and population structure are the three elements that support China's economic growth. With the existence of an effective and powerful domestic system in China, stable market exchange conditions are the key to maintaining economic growth. In addition, the high investment level in China is supported by the high national savings rate. This is the most basic source of investment funds. Favorable changes in the population composition of China also increases the proportion of skilled workforce to the population.

The future will be a technology-led future, and China is ready to be part of the future. President Xi Jinping understands the difficulty of maintaining China's economic growth, understands the possibility that technology will expand to millions of companies, eliminates inefficiency, and brings benefits to end users I will. But if you think that China is better than the United States with excellent technology, it will not be simple. The possibility of a trade war between China and the United States is only beneficial to China as it has advantages of scale economy and single independent market. The continuation of the trade surplus with the United States indicates that the United States depends on China's goods, and the trade war only harms the rise in consumer prices. The trade surplus in the first quarter of 2018 rose by about 20% to 582 billion dollars, raising the possibility of a trade war.