Frontier Issues of Chinese Economy

and Their Implications for China-

Portugal Economic Cooperation
February 23，2022
Dr Wang lei，PhD in Economics
Director-General, International Cooperation Bureau
Chinese Academy of Social Sciences
 Introduction
A Framework for Understanding
An Economy
 A framework for
Understanding An Economy:
Level A+B
Level A: Level B: (as given conditions)

Macro-Economic Issues Economic Structural Issues

featuring short-term featuring long-term
implications for economic implications for economic
stability and growth. development.

To be addressed with macro- To be addressed with polices,

economic policies, i.e. fiscal
policies and monetary
policies, which are aimed
usually to tackle short-term
challenges and problems.
which are aimed to nurture
and build up potential
economic growth capacity
in the long-run.
 Application of the framework of Level A+B
to Understand the frontier issues of Chinese Economy
Level A: in immediate-term
A close look to the Performance of Chinese Economy in
the context of Covid-19
1、Strategy adopted in China: Immediate Measures in
response to Covid-19
2、Macro-Economic situations: Export, Investment,
Consumption (demand side)
3、Macro-Economic policies to address the challenges:
Fiscal policy, monetary policy.
Level B: in long-term
A new era of Chinese Economy: A paradigm shift
8 pillars in transforming Economic Structure aimed at
long-term sustainability of economic development.
• 1 Upgrading the Manufacturing Sector
• 2 Enhancing Science and Technology
• 3 Revigorating Rural Area
• 4 Urbanization
• 5 Coordinating Regional Development
• 6 Ecological Advancement
• 7 Optimizing Market Mechanism
• 8 Unfolding All-Round Opening Up
 Outline of the Lecture
Part One: Performance of Chinese Economy in the Context of Covid-
19 （Short-term Issues）
1. Immediate Measures in response to Covid-19
2. Macro-Economic situations: Export, Investment, Consumption
3. Macro-Economic policies to address the challenges: Fiscal policy,
monetary policy.
Part Two: International Economic Backdrop
Part Three: New Era of Chinese Economy (Long-term Issues)
1 Upgrading the Manufacturing Sector
2 Enhancing Science and Technology
3 Revigorating Rural Area
4 Urbanization
5 Coordinating Regional Development
6 Ecological Advancement
7 Optimizing Market Mechanism
8 Unfolding All-Round Opening Up
Part Four: Implications for China-Portugal Economic Cooperation
 Part One
Performance of Chinese Economy
Facing the Pandemic of Covid-19
 Strategy: measures in response to
Covid-19
• Priority: put protecting the people and human life above everything
else: China(5,824/157,130) ，World(5,919,759/428,115,422)

Up to now, China has reported the smallest number of

confirmed COVID-19 cases and the lowest death toll among
the world‘s major economies. China has administered 2.93
billion doses of COVID-19 vaccines, and a total of 1.22 billion
people have been fully vaccinated – the most among the
major economies of the world – providing a general line of
defense for economic growth.

• Suppress local outbreaks of the epidemic (76-day lockdown of

Wuhan city since February 23.)

• Create conditions for returning to normal life and work.

 Policy targets: deliver stability while
pursuing progress of economy
• Ensure stability in six key • Maintain security in six
fronts: areas:

1. Employment 1. Job security

2. Financial sector 2. People's livelihood
3. Foreign trade 3. Market entities
4. Foreign investment 4. Food and energy
5. Domestic investment 5. Industrial and supply
6. Market expectations chains
6. Functioning of primary-
level government and
communities
 Policy Effects
GDP growth:
For 2020, Global Down-Turn, -3.5% for global economy; China: up 2.3%.
For 2021, China’s GDP 114.37 trillion yuan (US$17.7 trillion), up 8.1% over
Employment:
For 2020, 11.86 million urban jobs added, with 5.2% for unemployment
rate;
For 2020, 12.69 million urban jobs added, with 5.1% for unemployment
rate.
Macro-economic situation: A perspective of demand side

1. Export
2. Investment
3. Consumption
 Element 1: Export
The outstanding driving force during the pandemic period

China: Jan.-Feb. of 2021, increase by 60.6% y-o-y (33% with ASEAN, 40% with
EU, 75% with US). For 2021, the total surplus of foreign trade of goods was
4.37 trillion yuan, up 20.4% y-o-y.

Why:
1. Expansion of external demand: increasing needs for importing Chinese
products
Demand side: stimulus
Supply side: Suspension
2. Effective Control of Pandemic in China
3. The advantages of complete industrial system and stable production
capacity were given full play.
China's industrial supply system is complete, which can produce what the market
needs.
In addition, the industrial and supply chains are resilient and can quickly adapt to the
changes in demands of the market and thus boost the increase in supply.
For example, the market suffered from a shortage of chips and containers last
year. In addition to imports, China‘s own output of integrated circuits
increased by 33.3%, and thus quickly increased supply. Facing a shortage of
metal containers, China’s output of containers grew 110.6. Amid the
pandemic, the demand for office supplies for working at home boomed
domestically and abroad, such microcomputer equipment and smartphones.
Working at home has also boosted the demand for eating at home, with
fresh and frozen meat output increasing 24.5% and beverage output
increasing 12%.
As long as the media reports the world's demands, the industries make efforts to
produce and provide supplies, which will naturally promote economic growth, expand
employment, and increase income.
• For 2021, the total surplus of foreign trade of goods was 4.37
trillion yuan, up 20.4% y-o-y.
• At the end of 2021, China's foreign exchange reserves stood at
US$3.2502 trillion, the largest in the world.

US$ Billion
 Element 2: Investment
In 2021, investment in fixed assets continued to increase

The investment in fixed assets (excluding rural households) reached 54.45

trillion yuan, up by 4.9% over the previous.

Investment in infrastructure rose by 0.4%, manufacturing was up by 13.5% and

real estate development was up by 4.4%.

In terms of industries, investment in the primary industry went up by 9.1%;

that in the secondary industry was up by 11.3%; and that in the tertiary
industry was up by 2.1%.

Private investment was 30.77 trillion yuan, up by 7%, accounting for 56.5% of
the total investment.
In 2021,

• In terms of high-tech services, the investment in e-commerce

services and services for transformation of scientific and
technological achievements grew by 60.3% and 16%, respectively.

• Investment in the social sector went up by 10.7% over the previous

year. Specifically, the investment in the health sector and education
sector went up by 24.5% and 11.7%, respectively.
For 2021, the floor space of commercial buildings sold reached 1.79 billion
square meters, up by 1.9%. The total sales of commercial buildings were
18.19 trillion yuan, up by 4.8%.

The real estate market was generally stable in 2021. We adhered to the
principle that housing is for living in rather than for speculation and
actively implemented a long-term mechanism. We did not take real
estate as a tool and means to stimulate short-term economic growth but
made efforts to stabilize the price of land and houses, and the
expectations, actively preventing potential risks.
 Element 3: Consumption
• In 2021, the total retail sales of consumer goods reached 44.08 trillion yuan, up by
12.5% over the previous year. China's per capita consumption expenditure grew by
12.6% in real terms year on year.

• In 2021, national online retail sales reached 13.09 trillion yuan, growing by 14.1%
over the previous year.

• Specifically, the online retail sales of physical goods were 10.8 trillion yuan, up by
12%, accounting for 24.5% of the total retail sales of consumer goods.

• The per capita disposable income of Chinese citizens rose 8.1% from the previous
year and a two-year average growth of 5.1%, which kept pace with the economic
growth, meeting the target of scoring a steady increase in personal income.

• CPI: 2.5% growth(2020)；CPI 0.9% growth(2021)

 Analysis on the Engine of Economy
for achieving the 8.1% growth rate of 2021
• The final consumption expenditure, the gross capital
formation, and the net export of commodities and services
drove the economy to grow by 5.3, 1.1 and 1.7 percentage
points, respectively, and their contribution rates to
economic growth were 65.4%, 13.7% and 20.9%,
respectively.
• In 2021, the total retail sales of consumer goods in China
exceeded 40 trillion yuan, up by 12.5% year on year. The
fixed assets investment exceeded 50 trillion yuan, up by
4.9%. The contribution rate of domestic demand to
economic growth reached 79.1%, growing by 4.4
percentage points compared with the previous year.
Economic growth was mainly driven by domestic demand.
 Forecasting
Growth of Chinese Economy in 2022: 5.1-5.5%
Macro-economic policies

In combatting
the Covid-19 economic impact
A: Fiscal Dimension

1. Tax and fee cuts (efficient): reduce the burden on market entities
by more than RMB 2.6 trillion for the year of 2020, including RMB
1.7 trillion in social insurance premium cuts and exemptions.
2. Direct allocation mechanism: RMB 2 trillion of new funding for the
central government directly allocated to the prefecture- and
county- level governments, ensuring timely fiscal resources to
assist local business and residents. RMB 2.8 trillion for 2021.

More fiscal resources are pooled to support public well-being,

including compulsory education, basic medical care and basic housing
needs, as well as farmland irrigation and water conservancy projects.
These efforts deliver concrete benefits to the people.
B. Monetary dimension
Infusion of RMB 1.5 trillion to the real economy from the
financing system:

1. Banks were given support to increase loans to

business and lower interest rates in targeted way.
2. MSMEs were allowed to postpone principal and
interest repayment on their loans.
3. Finance lending by large commercial banks to micro
and small businesses increased by 50-odd percent.
 Basic experience
• Refraining from adopting a deluge of strong stimulus
policies; and
• Taking swift and well-targeted steps:
to revitalize market entities including MSMEs and
self-employed individuals, which are large in number,
extensive in scope and took the most direct hit from
Covid-19.
• At present, China's inflation rate (CPI 0.9%)and government
debt (45.8%, 2020)are low. There is space for monetary and
fiscal policies, and we have at our disposal a fairly
substantial toolkit for macro-control, which enables China
to maintain stable economic performance.
 Policy outcome
2020:
China GDP growth rate 2.3%, while Global Down-Turn, -3.5%
for global economy

2021：
China GDP growth rate 8.1%。
The national industrial capacity utilization rate reached 77.5%,
3 percentage points higher than that of the previous year.
The revenue in national general public budget grew by 12.8%
year on year.

2022: China GDP growth rate 5.4% (WB)

De. Ratio:
3.2%
 Part Two

International Economic Backdrop

1. US Stimulus Packages: USD 6 trillion
Concerns for the prospects of US macro-policies
(monetary and fiscal)
1. Global Debts: growth of USD24 trillion in 2020,
355% for debt/GDP ratio at global level---
increase of debt repayment
2. Negative interest rates
3. Global financial risks
4. Impact on China: increase of RMB value
(USD1=RMB6.4)---pressure on Chinese export
 US M2 Stock:
USD20.8 trillion (up to Aug. 2021), among which 26% was
issued over last 18 months.
Connally: The dollar is our currency, but your problem.

• massive quantitative easing brings spillover effects, affecting China and

the world.
 Interest rate adjustment of US and
China: in opposite direction
US: QE over the past 3 years. Lifting up interest rates now, to
counter inflation (CPI 7.5% up for Jan. 2022, highest since
Feb. 1982) and reap wealth based on US$ dominant
position.

China: Strict monetary policy over the past three years aiming
to enhance the economic structure. In the context of low
CPI (remaining under 2% since Sept. of 2012, only 0.9 y-o-y
for 2021 )and reliable resilience of Chinese economy ,
playing down interest rates now, to boast investment and
consumption while keeping reins on the real estate market.
 Part Three

New Era of Chinese Economy

 New Era of China’s Development
Announced during
The 19th Congress
of CPC
in 2017.

The 14th Five-Year

Plan (2021-2025)
for national
economic and
social
development
and the long-
range objectives
through the
year 2035;
enacted in 2020.
 Dual Circulation:
a new pattern of development
• In October 2020, the Fifth Plenary Session of the 19th Communist
Party of China Central Committee adopted the proposals for the
14th Five-Year Plan for National Economic and Social Development
(2021-25) and the long-range objectives through the year 2035,
• which indicate that China will adhere to a "dual circulation"
development paradigm in which:
the domestic circulation will play the primary role, while
domestic and international circulations will reinforce each other.

Production---distribution---consumption

Aim:
to promote high-quality growth and
advance reform and opening-up from a new starting point.
 40-odd years of Reform and Opening up
since 1978

• Increase in terms of • GDP (1978-2021) : from 0.364

Quantity over the last 4 trillion RMB to 17.7 trillion
decades RMB (77% of US GDP) with
USD12,000 per capita; 18% of
global GDP.

• Foreign Reserve (1978-2021):

from 0.0002 trillion US$ to
3.25 trillion US$.

• Poverty Population(1978-2021):
770 million getting rid of
poverty, more than 70% of
world poverty reduction.
 New Era of China’s Development
Announced during The 19th Congress of CPC
in 2017

• 2020: An all-round moderately well-off

society (per capita GDP 10,000 US$)
A new chart
• 2035: primary modernization (per capita
GDP 20,000 US$), keeping annual growth
rate 4.72%-4.73%. Potential annual
growth rate 5.5%-6%. (the theoretical
ceiling rate of growth without triggering
accelerated inflation in mid to long term.)

• 2050: high-level modernization

 Why A Shift?

Key Changes ※Resources:

Demography: Labor Aging
force(15-60 years old) 18.9%(60+);14.2%(65+)
decreasing since 2012, Land:
25% decrease by the mid
of 21th centaury. 7% to support 23%
Water:
Diminishing effects of 6% to support 23%
investment
※Environmental costs
 How A Shift?
Modernized Economic System
8 Pillars

1 Upgrading the Manufacturing Sector 5 Coordinating Regional Development

2 Enhancing Science and Technology 6 Ecological Advancement

3 Revigorating Rural Area 7 Optimizing Market Mechanism

4 Urbanization 8 Unfolding All-Round Opening Up

A: Economic Structure: 1-3-4-5-6-8

B: Technology Status: 2

C: Institutional Efficacy: 7
Pillar 1: Upgrading the Manufacturing
Sector
 Pillar 1: Upgrading the Manufacturing Sector

• The real economy is fundamental.

• Climbing up in the Global Value
• Supply-side Chain
Structural • Reducing the over-capacity of
Reform supply
• Entrepreneurship ( status and
function)
 Pillar 1: Upgrading the Manufacturing Sector

Newly emerging industries • New energy

• New materials
• Life engineering
• IT and mobile internet(digital
economy: 22.6 trillion RMB-
30% of GDP of China; sharing
economy:600 million
participants, 3.45trillion RMB
of market transactions )
• Environmental protection
• New energy automobile
• AI (27% increase of labor
productivity of China)
• High-end appliances
 Pillar 1: Upgrading the Manufacturing Sector

• Five keys of • Aerospace devices and

modern aircrafts
manufacturing • High-speed railway appliances
• Nuclear-electricity appliances
• Electricity grid appliances
• Maritime vessels
 Pillar 1: Upgrading the Manufacturing Sector

• high-tech For2021,
manufacturing and The value added of high-tech manufacturing
equipment and equipment manufacturing went up by
manufacturing enjoyed 18.2% and 12.9%, respectively
fast growth. By products, the production of new energy
vehicles, industrial robots, integrated
circuits, and micro computer equipment
grew by 145.6%, 44.9%, 33.3% and 22.3%,
respectively.
In terms of high-tech manufacturing, the
investment in electronics and
communication equipment manufacturing
and in manufacturing of computers and
office equipment grew by 25.8% and
21.1%, respectively.
 Pillar 2: Enhancing Science and
Technology
• Basic research (for 2021,
• Striving for
investment up by 15.6%; )
an innovative
country • Management System
• Human resources
• Science & • R&D spending/GDP: 2.44% (the
technology- year of 2021)
based • Super large-scale market
Innovation is
the primary
force for
development.
 Pillar 2: Enhancing Science and
Technology
Support from The online retail sales of physical goods
internet in increased by 12%, accounting for 24.5% of the
combatting the total retail sales of consumer goods.
Covid-19
economic impact New forms of employment are flourishing.
• Working from China's new industries, new forms of business,
home and new models continued to develop rapidly
• On-line last year, with various flexible employment
models absorbing a lot of the labor force. At
shopping present, there are about 200 million people
• Contactless working flexible jobs in China, with food
delivery deliverymen accounting for about 4 million
and online broadcasters and related
employees accounting for more than 1.6
million on some platforms, nearly three times
that of last year.
 Pillar 2: Enhancing Science and
Technology

The cases of ZTE and

HUAWEI
 Screenshot taken on June 2, 2021 shows the online launch ceremony of
Huawei's operating system HarmonyOS 2 for smartphones in Shenzhen, south
China's Guangdong Province
• The Chinese name of the system, Hongmeng, is borrowed from the
country's mythology, meaning breaking free from chaos and
starting something new from scratch.

• That is exactly the meaning Huawei intends to give to its new

product. The launch of HarmonyOS marks a breakthrough in
Huawei's drive in ecosystem development by itself in the face of
Washington's aggressive and unfounded sanctions.

• It also marks a significant step in China's independent tech

innovation amid potential risk of a technological de-coupling
between the two countries pushed by Washington.

• In addition to developing a new operating system, Huawei is also

working on in-car software and cloud computing, pivoting to
software and service business that does not rely on U.S. supply
chains.
 Pillar 2: Enhancing Science and
Technology
Chips:
USD430 billion imports in
2021, up by 25%.
USD1537 billion exports in
2021, up by 32%.

For the first half of 2021, the

output of industrial robots
increases nearly 70%,
integrated circuits nearly
50%.
 Pillar 2: Enhancing Science and
Technology
self-reliance in science and technology, crucial for national development
• China's spending on basic research during the 14th Five-Year Plan period
(2021-2025) will likely reach a record 8 percent of all research and
development (R&D) expenditure, according to the Ministry of Science and
Technology. China's spending on basic research hit 133.6 billion yuan
(about 20.4 billion U.S. dollars) in 2019, accounting for over 6 percent of
total R&D expenditure. It is estimated that spending in 2020 exceeded 150
billion yuan.

• raising the super tax deduction on the research and development

expenses of manufacturing firms. The ratio of extra tax deduction on
enterprises' R&D costs is raised from 75 percent to 100 percent, starting
Jan. 1 2021. This means, for every one million yuan spent on R&D, a
company will see two million yuan deducted from its taxable income.
 Pillar 3: Revigorating Rural Area

Three Rural • Modernizing agriculture and

Issues: countryside
• Agriculture
• Countryside • Consolidating and enhancing
• Framers: less rural land regime
income (1:2.7;
2200USD- • Food security of the country
6000USD)
• Building up modern rural system
 Pillar 3: Revigorating Rural Area
Poverty Alleviation

The concept of

Accurately-targeted Poverty
alleviation

A law on the promotion of

rural vitalization was adopted
by China's national legislature
on April 30 2021, providing the
country a legal guarantee in
pursuit of the rural vitalization
strategy.
 Pillar 4: Urbanization
Ratio :
Mobile population: 64.7%
384 million 0.91 billion/1.41
billion
 Pillar 5: Coordinating Regional
Development
• Scale- • A new scheme for coordinating
economy the development of regions
effects: A big • The East Region
advantage of • The Mid Region
China as a
big-size • The West Region
country • The North-East Region
• The Ethnic and Border Areas
• Regional Development Strategies
 Pillar 5: Coordinating Regional
Development

Regional
Development
Strategies
 Pillar 6 Ecological Advancement
• Building a beautiful • lucid waters and lush mountains are
invaluable assets ---XI Jinping
China
Pillar 6 Ecological Advancement

• Resource-efficient
• Environmentally-friendly
Air
By
Water Adjusting economic and energy
structures
Soil Optimizing the layout and
development of territorial space
Fostering industries concerning
energy conservation,
environmental protection
Encouraging simple, green and
low-carbon ways of living
Strengthening governance.
 Peaking carbon emissions by 2030 and achieving carbon
neutrality by 2060 is a tough battle

For 2021, the consumption of clean energies such as natural gas, hydropower,
nuclear, wind, and solar accounted for 25.3% of the total energy
consumption,
 the country is expected to adopt more stringent targets on
energy conservation in the context of peaking carbon emissions
and achieving carbon neutrality.
• multiple measures to promote the wider use of renewable energy, cut the
production capacity of resource-intensive sectors and wage a battle
against pollution.
• Official statistics show that by 2019, carbon emission intensity in China
had decreased by 48.1 percent compared with 2005, exceeding the target
of reductions in carbon emission intensity by 40 to 45 percent between
2005 and 2020.
• The government is also to draw up an action plan for peaking carbon
emissions before 2030 and make efforts to improve its industrial structure
and energy mix.
• In 2021, the output of new energy vehicles and solar batteries grew by
145.6% and 42.1% compared to 2020, respectively. . New energy vehicle
sales amounted to 2.5million in 2021, accounting for 60% of the world
total.
• In 2021, the energy consumption per unit of GDP dropped by 2.7%
year-on-year.
• China will build a clean, low-carbon, safe and efficient energy
system, while controlling the total use of fossil fuels and take action
to shift to alternative energy sources.
• The country will deepen the reform of its power system, build a
power network based on new energy, reduce pollution and carbon
emissions in key industries and promote green manufacturing in the
industrial sector.
• To push forward major breakthroughs in green and low-carbon
technologies and accelerate the promotion and application of such
technologies for reducing pollution and carbon emissions
• To advocate a green and low-carbon lifestyle, give full play to the
ecological environment, including forests, wetlands and grasslands,
in increasing carbon sinks, and
• To strengthen international cooperation on addressing climate
change.
Pillar 7: Optimizing Market Mechanism

• Property Rights System

Target: • Market-based allocation of
To achieve economic factors: increase of
A full-fledged outputs with the unchanged total
System of inputs by lifting market distortions
Socialist Market • Macro-economic regulations: fiscal
Economy policy, monetary policy, financial
Through Reform sector regulation, debt risk
prevention ,real estate bubbles.
• Reform of state-owned enterprises
• Law enforcement in fight against
monopolies and unfair competition
Pillar 7: Optimizing Market Mechanism

During the 13th Five-Year Plan (2016-2020) period, more than 60

million new market entities were added. It has enhanced the
To enhance market vitality through economic vitality and created numerous jobs.
institutional reform:
For 2020, the newly-established market entities contributed RMB
1. deepening reforms to 3.8trillion tax, with total fiscal revenue RMB 18 trillion.
streamline administrative approval;
2. delegate power to lower levels;
3. improve regulations and At the end of 2021, the total number of market entities in China
services; exceeded 150 million, with more than 40 million enterprises and
4. combat monopolies and unfair more than 100 million self-employed businesses.
competition; and
5. protect the legitimate rights and
interests of market entities, small
and micro firms and individually-
owned businesses in particular.
Pillar 8: Unfolding All-Round Opening Up

A Paradigm Investment: inbound to outbound

shift
featuring
Trade: export to import
Two-way
14.5%: annual trade growth over
traffic:
40 years
inward and
outward
Internationalization of RMB
Pillar 8: Unfolding All-Round Opening Up
• Driving No. 1 trade partner for 120 countries
force for No.2 both for inbound and outbound
global FDI
economy No.1 outbound travels, 130 million in
2017
A share of 25%-30% contributing to
annual growth of global economy
Pillar 8: Unfolding All-Round Opening Up
Belt and Road Initiative
 Pillar 8: Unfolding All-Round Opening Up
Belt and Road Initiative
Spirit: Principles:

Peace and cooperation Consultation

Openness and Joint building
inclusiveness Sharing
Mutual learning
Mutual benefit
 Pillar 8: Unfolding All-Round Opening Up
Belt and Road Initiative
Policy connectivity

Infrastructure connectivity
Connectivity
Trade connectivity
-- Central concept
Up to the end of 2021, Financial connectivity
China has signed BRI
cooperation documents People-to-people connectivity
with 145 countries, and
its total import and
export volume with
countries involved in the
Belt and Road rose by
more than 20%.
 Pillar 8: Unfolding All-Round Opening Up
Belt and Road Initiative

China-Europe Freight
Express Train: 9800km, 12-
14days, 30 days less than by sea; 61 lines;
to 13 European countries with 41 cities;
7600 tips so far
2018: 1000 trips, 75% up year on year
2021: the number of China-Europe
freight train trips surged by 22% year on
year to 15,000.
Pillar 8: Unfolding All-Round Opening Up
A new round Import of goods: automobile, luxury
goods, daily goods

In particular, at the Import of service: banking, insurance;

beginning of this year, the dropping 20% share limit, and allowing
Regional Comprehensive dominate share holding.
Economic Partnership
(RCEP) officially entered Inbound Investment
into force, marking the
largest free trade zone by
far in terms of Market environment
participating population,
trade volume, and
development potential. It
is certain to promote the
development of foreign
trade, mutual investment,
international trade, and
international investment.
 Pillar 8: Unfolding All-Round Opening Up

• Free trade zone

 In summary: Five Underlying Ideas of
Development
high-speed growth to high-quality development
From To
High-speed High-quality
Growth Development
• Innovative
• Coordinated
• Green
• Opening
• Inclusive
 Conclusion
Level A: Level B: Level A+B:

1.Keeping reasonable 2. Nurturing better 3. Coordinate the short

growth rate: 5-6% (with potential growth rate term and the long term
taking into account of (by the way of objectives with the aim
inflation, fiscal situation, transforming of achieving Quality and
unemployment rate and From High-speed Sustainability of
etc.) Growth Economic Development.
To High-quality
More proactive macro- Development)
economic policies to
enhance investment, Pursuit to Five Big
especially in Ideas of Development
infrastructure, • Innovative
consumption (Key: to • Coordinated
boast consumption • Green
through increasing • Opening
people’s income i.e.
labor remuneration in • Inclusive
comparison with the
weight of capital and
land returns) and export.
 Part Four

Implications for China-Portugal

Economic Cooperation
 Five Areas of Cooperation
1. Investment in two-way traffic
To China: China is a attractive destination for FDI. For 2021, RMB1.1494 trillion (US$179.5 billion)of FDI
to China, up 14.9% y-o-y. 20% of world total. Key field: agriculture, green technologies, service
sector and etc..
To Portugal: Portugal is attractive for Chinese investment due to mature market environment. Key
fields: capacity-building for manufacturing, energy, infrastructure and etc.

2. Trade
To China: Super-large scale market of China with more than 1.4 billion people. The total value of
imports was 17.37 trillion yuan (US$2.71 trillion), up by 21.5%, in 2021. The expansion of domestic
demand propels imports, especially demand to high-quality consumption goods.

3. Tourism to Portugal
More than 400 million middle-income earners in China.
Portugal is of rich sources of culture, landscape, history , religion, and etc..

4. Third-part cooperation
The B&R construction especially in Portuguese-speaking countries in Latin-America and Africa.

5. Macao as a hub of cooperation

Thank
you!