In 2015, China's economy remained stable, achieving a growth of 6.9%, ranking first among the world's major economies in terms of economic growth rate. With a total economic output of nearly 10.8 trillion US dollars (676708 billion yuan), China is firmly ranked as the world's second largest economy. However, such a huge economic achievement has been "badmouthed" by many foreign media, with some saying that China's economy has stalled, some saying that China's growth model has failed, and some saying that China is about to "collapse". So, what does China's 6.9% economic growth mean, and what impact and changes will it bring to China's development and people's lives? This article uses actual data to experience and analyze it with everyone.

1. China's economic growth of 6.9%, 30% of the world's economic growth

China's development is inseparable from the world and also contributes to the world. Affected by the very complex world economic environment and the continued slowdown in trade and investment growth, China's exports and foreign direct investment growth have declined relatively. The dollar value of exports has dropped by about 8%, while the scale of foreign direct investment has only increased by 6.4%, and the driving force for the economy has weakened. But in fact, the endogenous driving force of China's economy is still abundant. The total retail sales of consumer goods exceeded 30 trillion yuan, and the fixed asset investment exceeded 55 trillion yuan, and the actual growth rate remained above 10%. In terms of US dollars, the 6.9% growth rate of China's economy in 2015 represents a new output scale of 750 billion US dollars. According to the World Bank's forecast, the total scale of the world economy will increase by about 2.8 trillion US dollars in 2015, and the Chinese economy has contributed 30% of the world economic growth.

1. China's total economic volume

In 2015, China's total economic volume reached 10.8 trillion US dollars, which is equivalent to the combined GDP of Japan, Germany and Italy. Even compared with the US's 17.5 trillion US dollars, China's economic scale has reached 62%. This ratio exceeds the level of 52% in the heyday of the former Soviet Union and the level of 60% in the most prosperous period of Japan's economy. In addition, China's economic growth rate is still growing rapidly at nearly three times the speed of the United States. The gap between China and the United States is further narrowing.

Some people say that China's economy is made up of real estate. There are even reports that 1/4 of the value of the world's stock of buildings is in China. In this way, the rapid rise in housing prices has led to a sustained and rapid growth in GDP due to asset premiums. This understanding is greatly inadequate, because GDP is the sum of added value, not the sum of the value of stock assets. The increase in GDP brought about by rising housing prices can only be reflected in the premium of new housing prices, but the rise in housing prices for stock houses has almost no effect on GDP. Judging from the situation in 2015, due to the decline in new housing transaction volume (-6.9%) and the stable operation of housing prices (7.4%), the impact of housing prices on GDP is almost zero. That is, the correlation between China's economy and the real economy in 2015 is better. The elimination of asset premium factors makes our economic growth more focused on increasing employment, improving labor remuneration, improving labor productivity and the actual output of enterprises.

2. China's economic structure

In 2015, the ratio of China's three major industries was 9:40.5:50.5. The tertiary industry was the leading industry in the national economy, and its proportion was 10 percentage points higher than that of the secondary industry. The industrial structure of China's economy was significantly optimized and improved. Within the industry, the proportion of facility agriculture, green agriculture and traceable agriculture in the primary industry increased significantly, and the growth rate of agricultural fixed asset investment reached 32%; the growth rate of added value of high-tech enterprises in the secondary industry reached 10.2%, 4.1 percentage points higher than the average growth rate of industry; the growth rate of productive services and high-end life services in the tertiary industry accelerated significantly, and the proportion of modern services in the tertiary industry increased by about 5 percentage points.

In addition, China's economic power structure, regional structure and urban-rural structure have also been significantly optimized. In 2015, the proportion of final consumption in GDP reached 66.4%, becoming the first driving force of national economic growth, and the color of a major economy has become more prominent. The added value of industrial enterprises above designated size in the central and western regions increased by 7.7% year-on-year, 1 percentage point faster than that in the eastern region. The income structure between urban and rural areas has also been significantly optimized. The disposable income of urban residents increased by 8.2%, while that of rural residents increased by 8.9%. The urban-rural income multiple decreased to 2.73, and the urban-rural gap was further narrowed.

3. China's economic efficiency

While the scale increased and the structure was optimized, the operating efficiency of China's economy has also been significantly improved. According to the formula of economic growth given by neoclassical economics, of the 6.9% growth rate in 2015, 1.7 percentage points came from the creation of labor factors, 1.8 percentage points came from the creation of capital factors, and the economic growth contributed by the increase in total factor productivity reached 3.4 percentage points, accounting for about half of the entire economic growth.

While total factor productivity increased, the consumption of China's economic growth also decreased significantly. In 2015, the energy intensity of China's economy decreased by 5.6% compared with 2014, the carbon emission intensity decreased by 17% compared with 2010, and the emission of other pollutants also decreased significantly. China's economy has become greener, lighter, and more quality-oriented.

4. China's Economic Innovation

In 2015, China's economic innovation capacity was further enhanced, and the effect of innovation-driven development as a successor and substitute of factor-driven development and investment-driven development was further highlighted. In terms of innovation, China's annual innovation investment reached 1.45 trillion yuan, accounting for about 2.14% of GDP, which not only successfully achieved the planning goals of the "12th Five-Year Plan", but also significantly exceeded the 2% entry threshold for R&D investment intensity of innovative countries in the world. In terms of other innovation resources, China is also at the world's leading level. In 2015, the number of applications for invention patents in China reached 1.102 million, surpassing the United States for five consecutive years to rank first in the world; the number of Chinese workers engaged in R&D activities reached about 5 million, accounting for about 27% of the world's total R&D personnel, which is about 10 percentage points higher than that of the United States. China's innovation capacity and innovation potential are second to none in the world, which has prepared an important foundation for improving the level and quality of China's economic development.

In terms of driving force, China's ability to transform and apply innovative achievements is also constantly improving. In 2015, China's scientific and technological achievements focused on "reaching the sky" and "standing on the ground", vigorously promoted the transformation of high-end innovative achievements, and also vigorously encouraged market innovation characterized by efficiency, quality, technology and products (services). Major national science and technology projects and "mass entrepreneurship and innovation" have achieved fruitful results. With the promotion of reforms such as the revision of the "Law on the Transformation of Scientific and Technological Achievements" and the encouragement of universities and scientific research institutions to transform scientific and technological achievements, the transformation rate of China's scientific and technological achievements has increased significantly. It is expected that the level of application and transformation of achievements will increase by at least 3-4 percentage points, and the overall level will approach about 20%.

5. China's economy and the world economy

China's economy is the engine of world economic growth, and this conclusion has been tested and verified by long-term practice. Since the beginning of the 21st century, regardless of the stage of the world economic cycle or the impact of China's economic fluctuations, China's economic contribution to world economic growth has remained above 1/5. During the "12th Five-Year Plan" period, China contributed about 1/3 of the world's economic growth. While being the "mainstay" of world economic growth, the Chinese economy also drives and supports the economic development of other countries through trade, investment and international engineering construction, and participates extensively in global economic governance, creating important conditions for the stable recovery and healthy development of the world economy.

In 2015, the total scale of China's trade in goods reached 24.58 trillion yuan, a year-on-year decrease of 7%, but it still exceeded the United States by nearly 50 billion US dollars, and still ranked first in the world. From the perspective of exports, China's export growth rate was -1.8%, which was significantly better than that of other major economies in the world, such as the United States at -6.8%, Germany at -11.2%, Japan at -9.4%, India at -17.5%, South Africa at -9.5%, Brazil at -16.0%, etc. Although the growth rate of imports was only -13.2%, the import volume of bulk commodities still maintained a steady growth. The import volume of 10 categories of bulk commodities such as crude oil, plastics, soybeans, natural gas, pulp, grains, and copper concentrates all hit record highs, effectively supporting the economic stability and industrial development of the world's bulk commodity producers.

In 2015, the scale of non-financial foreign direct investment attracted by China reached 126.3 billion US dollars, a year-on-year increase of 6.4%, about 3 percentage points higher than the world's investment growth rate. China is still the largest recipient of global direct investment, and its industrial structure is constantly optimizing. The scale of foreign investment attracted by the service industry is as high as 77.2 billion US dollars, accounting for 61%. The scale of China's outward direct investment exceeds 118 billion US dollars, and it will become the world's third largest outward direct investment country, which has a significant impact on the world's investment, especially the economic growth of developing countries. The turnover of China's international engineering contracting business exceeded 154 billion US dollars, a year-on-year increase of 8.2%. China has made important contributions to the development of the world economy and the improvement of infrastructure.

In 2015, the Asian Infrastructure Investment Bank and the New Development Bank of the BRICS, international multilateral financial institutions led by the Chinese government, have made significant progress: on July 21, the New Development Bank officially opened in Shanghai, and on December 25, the AIIB was officially established. China contributed $41 billion of the $100 billion capital of the New Development Bank, making it the largest shareholder; China contributed $29.8 billion of the $100 billion capital of the AIIB, with a shareholding ratio of 30.34% and a voting right of 26.06%, giving it a veto over major issues. In addition, on November 30, the RMB, after review and approval by the IMF, became a basket currency of the Special Drawing Rights (SDR), with a weight of 10.92%, higher than the 8.33% of the Japanese yen and the 8.09% of the British pound, and officially became the world's trading, settlement, pricing and reserve currency. China's international influence has been further enhanced, and its core position in international economic affairs has been further consolidated.

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