Global changes

We need to realize that China is blessed with many favorable conditions for its stable and rapid economic growth over a relatively long period of time. In the second decade of the 21st century, China is still in the important period. Why?

First, it was pointed out in the 16th CPC National Congress held in 2002 that the first two decades of the 21st century would be an important period of strategic opportunities. What is the basis for this?

In the international arena, peace and development remain the themes of the times. Global multi-polarization and economic globalization are moving forward in a zigzagging way. Development of a more balanced economy is making progress with each passing day. The competition in comprehensive national strength is becoming increasingly fierce. In the domestic arena, the Chinese people are now living relatively well-off lives. This marks a great success for the socialist system and a new milestone in China's history. The first two decades of the 21st century are critical for the improvement of the socialist market economy system and the further opening up of the country.

Second, the profound changes occurring in today's world economy and politics are on the whole conducive to China's peaceful development.

In terms of politics, major changes include the United States' return to Asia. Washington has adjusted its strategy, extending NATO's antenna to China's neighboring areas. Also, the U.S. subprime credit crisis has caused the global financial crisis and later the sovereign debt crisis occurring in some European countries have negatively impacted the world economy and affected the world's political pattern. While the multi-polarization of the world pattern becomes clearer, China insists on the road of peaceful development and holds a greater influence in the world.

In terms of economy, the world economic recovery from the financial crisis has been better than expected, but the real estate sector and the financial sector in major developed countries have been seriously hurt. In order to stimulate economic recovery, some countries insist on an expansionary monetary policy. This might lead to even more serious fluctuations in the international financial market and a heavier blow to emerging economies. With more complex global competition, China is under heightening external pressure.

 Third, China's economic and social development have already reached a new historical point. On the one hand, we are faced with a series of striking conflicts and difficulties. For example, although China's GDP growth rate stays high, its per-capita income is still very low. There exists an imbalance between investment and consumption, with a relatively low consumption level. China's scientific innovation is lagging behind that of developed countries. Meanwhile, the country's input in education, medical services, affordable housing and social welfare is limited and unable to cover everyone equally. The social gap is widening and social conflicts are increasing.

On the other hand, the second decade of the 21st century is equipped with better development conditions than ever before since reform and opening up started in the late 1970s. China's development road has obvious advantages. After 30 years' reform and opening up, China's economic power and comprehensive national strength are on a rapid rise.  

On the whole, China faces more opportunities than challenges. In the face of so many complex challenges, the key is to seek out the opportunities created by the challenges and to be confident in China's final success.