Restructuring has increased durability of Chinese economy: China Daily editorial

From a historical perspective, the 40 years of reform and opening-up have shown that China's development has never been easy. It has had to overcome numerous challenges, including major shocks such as the Asian financial crisis in 1997-98 and the global financial crisis in 2008-09. But the country has successfully passed every test it has faced and in doing so emerged stronger.

Each time, the Chinese authorities have used policy tools to stimulate domestic demand, stabilize exports and support the manufacturing sector to successfully overcome the trials and tribulations.

Today, the Chinese economy is still enduring growing pains, not least from the external uncertainties caused by trade tensions, but unlike 10 or 20 years ago, domestic demand is playing an ever more important role in bolstering the economy thanks to the country's strenuous efforts to restructure the economy in recent years.

That these efforts are paying off can be seen from the 6.4 percent year-on-year growth achieved in the first quarter that put at least a temporary end to the slide that began last year as a result of the trade turmoil. Likewise, the latest data on domestic demand and the digital economy show the progress the country is making in switching the drivers of growth from investments and exports to services and innovation.

The digital economy accounted for 34.8 percent of the country's total GDP last year — 31.3 trillion yuan ($4.6 trillion) — according to a report released at the ongoing second Digital China Summit in Fuzhou on Monday. That online retail sales exceeded 9 trillion yuan reflects the growth in domestic consumption, which contributed 76.2 percent to China's economic growth last year, according to the National Bureau of Statistics.

The consumption data for last week's May Day holiday reinforces the vibrancy of domestic demand, which has become an increasingly important pillar for the world's second-largest economy. Over the four days, 195 million people traveled to domestic tourist spots, 13.7 percent more than the number last year and the country's tourism revenues increased by 16.1 percent year-on-year.

China's internet giants also highlight the fast growth of its high-tech enterprises, leading to the emergence of an ever larger group of internationally competitive companies.

As a result, although China's economic growth rate has slowed, its economy has, on the whole, become more competitive, sustainable and capable of creating jobs.

It is well positioned to weather any storms ahead, which will not be so severe and daunting as the Asian and global financial crises given the changes that have strengthened the durability of the Chinese economy. And given its sound fundamentals, China will be able to overcome any foreseeable difficulties.