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Business / Economy

China's continuous reforms, development to boost global recovery

(Xinhua) Updated: 2014-12-12 11:25

While creating a miracle in economic growth, China, the world's second largest economy, also paid a huge price on environment.

This year, the Chinese government has eliminated excess capacity in the production of cement, and iron and steel.

Nearly a half of the 80 investment projects for private capital, announced by the National Development and Reform Commission, are clean energy-related projects.

China's industrial upgrade and optimization will unleash huge market demand, which will boost not only its own domestic demand-driven economic development, but also the recovery of the world economy, experts said.

Chinese President Xi Jinping noted at the APEC CEO summit in November that China is expected to import $10 trillion worth of commodities worldwide while China's outbound investment will amount to $1.25 trillion in the next decade.

The significant volume of Chinese market and its outbound investment means China has become a powerful propeller to the world economy.

Whereas China has been persistently dedicated to building a cohesive regional trade network and a complete regional connectivity, China continuously pursues further regional development of the "21st Century Maritime Silk Road" and the "Silk Road Economic Belt."

China has also set its mind on facilitating an open world economy, mainly via platforms such as the aforementioned regional economic cooperation platforms, the Asian Infrastructure Investment Bank, the BRICS Development Bank, the Silk Road Fund and the Euro-Asia High-Speed Transport Corridor.

As China is transforming from a "world factory" to a major global market and investor, its continuous growth of outbound investment has been beneficial to destination countries of Chinese capital in respect of industrial sector upgrade and independent development capacity.

Moreover, money and technologies are not the only things Chinese investors can offer. They can also help boost tax revenue and employment.

From 2005 to 2013, China has invested about $11.7 billion in British infrastructure constructions. And investments like this are estimated to soar up to $105 billion in 2025.

China and India have inked a five-year plan on economy and trade cooperation, in which China will make an effort to invest 20 billion dollars in the industrial sector and infrastructure development of India.

Chinese equipment and technologies on railway transport are to be applied in Brazil, as Rio de Janeiro - the host city of 2016 Summer Olympic Games - will see a lot of Chinese-made railways and trains in its light rail system.

In addition, China has signed 12 free trade agreements, which lower trade barriers of 20 countries and districts for Chinese business. China has also wrapped up free trade agreements with South Korea and Australia.

Zhuo Shaojie, deputy-director of Chinese Study Center at the University of Melbourne, said: "China is working hard to facilitate the economic stabilization in Asia and the Pacific, as wells as in the world, and has actively participated in the global governance and the building of an open world economy."

The global economy can benefit significantly from the efforts made by China, Zhuo added.

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