China's Economy
According to Premier's Li Keqiang's s Work Report at the March 2015 National People's Congress, China's GDP grew by 7.4% in 2014, the slowest in 24 years.
Despite slower economic growth, 2014 saw 13.22 million new jobs created in towns and cities, higher than the year before. Newly created businesses increased by 12.93 million units, an increase of 45.9%. Energy intensity dropped by 4.8%, the largest in the past few years. Consumption’s contribution to GDP increased from 50% to 51.2% while Services’ contribution increased from 46.1% to 48.2%.
These data indicate that China's economic model is starting to shift towards slower but more sustainable growth.
For 2015, GDP target growth is pitched at 7% with inflation rate at 3%. 10 million new jobs are to be created with urban unemployment to be kept within 4.5%. Trade (import-export) is to grow by 6% with concomitant income growth at similar rates. To achieve these targets, broad money supply M2 is to expand 12% or higher if necessary to provide any necessary financial catalyst.
According to Justin Lin, former chief economist and senior vice president of the World Bank, for China to become a moderately-well-off nation by doubling her 2010 GDP by 2020, a year-on-year 6.8% growth from 2014 through 2020 would be sufficient. For China to overcome the "middle-income trap", her economy could do well to maintain about 7% growth for 20 years. Click here and here
For a quick run-down of Premier Li's Work Report highlights, the following is a selective translation of a 30-point summary chart published on Xinhua.net, a state online news platform.
Download 30 Highlights of Premier Li Keqiang (Selective translation)
Download 30 Highlights - Premier Li Keqiang's Work Report, NPC 2015(Chinese)
China's Military Budget
Amid wild speculations, China announced a relatively-mild 10.1% increase in military budget for 2015. Albeit the second largest military budget in the world, it is much less than a third of America's $526.8 billion for fiscal year 2014 Click here, representing China's military budgets' slowest growth rate since 2010. -
Year Military expenditure growth GDP growth
2010 7.5% 10.4%
2011 12.7% 9.3%
2012 11.2% 7.7%
2013 10.7% 7.7%
2014 12.2% 7.4%
Many analysts suggest that China's military expenditure, including all hidden items, probably represents anything up to double the amount. Be that as it may, China's military capabilities and sophistication still have to continue to catch up with her Western peers, commensurate with the size and outreach of her economy.
China's military expenditure in 2014 accounted for less than 1.5% in the GDP, lower than the world average of 2.6%, in comparison with 3.8% for the United States, 2.2% for the U.K. and France, and 4.2% for the Russia Federation, according to the World Bank. It also compares with the recently increased 2.8 % (for 2015) for Japan.
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