By H.E. Wang Fukang, Ambassador Extraordinary and
Plenipotentiary of the P.R. China to the Republic of Maldives
Two weeks ago, Chinese Premier Li Keqiang delivered the Report of the Work of the Government at the Fourth Session of the 12th National People’s Congress, which attracted mass domestic and international attention. In the Report, Premier Li made important statements on China’s economic situation and painted the positive outlook of future growth to be realized by continued reform and opening-up. While the international community becomes more concerned about and raises more doubts on the performance of China’s economy, Premier Li sang it out loud that China is ready for challenges and the government and people have strong confidence to meet the economic development goals in 2016 and make further contributions to the world economy. Being a close neighbor and development partner of the Maldives, China-Maldives economic and trade ties has been enjoying vigorous momentum. I am fully confident that China’s economy will move forward and our sound bilateral economic relationship will bring more opportunities to our two people.
Firstly, China’s overall economic situation remains positive. The economy operated within an appropriate range and GDP reached 10.4 trillion U.S. dollars in 2015, after scoring a growth rate of 6.9%, faster than that of most other major economies. It is worthwhile being noted that the economy also created 13.12 million new urban jobs, exceeding last year’s target. Equal weighted has been given to quantity and quality and encouraging progress is made in structural adjustment, with the service sector as a proportion of GDP rising to 50.5% and the contribution of consumption toward economic growth reaching 66.4%. Furthermore, the economy has accumulated new driving forces for development as we adhere to the strategy of innovation-driven development, facilitating the penetration of Internet into all industries and encouraging business startups and innovations by the general public. An average of 12,000 new businesses was started per day last year and this trend goes on.
Secondly, we have a good reserve of policy tools at our disposal to fulfill our main economic development targets of 2016 to maintain stable growth and ensure employment. We will pursue a more proactive fiscal policy by projecting a government deficit of 334.7 billion U.S. dollars, accounting for only 3% of GDP, which is necessary, feasible and safe. Meanwhile, we will pursue prudent monetary policy that is flexible and appropriate to maintain sufficient liquidity at a proper level and provide more support for the real economy. To strengthen supply-side structural reform is by all means essential in today’s China to drive sustained growth. In view of it, we will revise or abolish any administrative regulations and normative documents that hold back development, implement the strategy of innovation-driven development to fully release people’s potential for making innovation and address the overcapacity in the steel, coal and other industries facing difficulties. While domestic demand becomes the new engine to drive the economy, we work to tap its potential by strengthening the foundational role of consumption in promoting economic growth. With the advancement of new urbanization happening simultaneously, we will transfer large number of rural population into urban areas to create demand.
Thirdly, in the face of profound changes in international economic cooperation and competition, we for sure will carry out a new round of high-quality opening up featured mutually beneficial cooperation to inject more impetus into the economy. We will sturdily carry out the Belt and Road Initiative and work with other countries to promote connectivity and accelerate implementation of free trade arrangements. Greater industrial-capacity cooperation with other countries is listed as priority and we will launch a number of demonstration projects, with the help of RMB overseas cooperation fund and bilateral industrial-capacity cooperation funds. Overseas investment will find out that China’s investment environment becomes more fair, transparent, and predictable as we will continue to relax market access restrictions and simplify relevant procedures.
As such, the vitality and momentum of China’s economy will not disappear and it will remain stable and reliable, with business opportunities and large commodity and consumption market open to friendly countries including the Maldives. It should be noted that in January the Maldives has received 23,241 Chinese tourists, an increase of 13.5% compared with the same month last year, which is vivid evidence of China’s vigorous economy. China is willing to share the development opportunity with the Maldives to promote common development and win-win cooperation. We have more to expect as the China-Maldives Friendship Bridge begins its construction and the Male International Airport Upgrade and Renovation Project gets the financing with China’s help, which will greatly increase connectivity and help overcome transportation obstacle for more economic benefits. China is grateful for the Maldives’ willingness to jointly build the 21st Century Maritime Silk Road and hope the Maldives can make full use of this initiative to thoroughly upgrade its infrastructure and realize economic transformation.
Looking around the world today, we couldn’t deny the fact that peace and development are still the theme of the era. The journey of development is not plain sailing; however, the Maldives can expand its development space derived from enhancing economic and trade ties with China. Despite challenges, China will press ahead with its economic development agenda and fulfill its commitment towards the Maldives. We are more than happy to welcome the Maldives to cruise forward with China’s economic growth and realize its development vision.