1、China Economic Quarterly Q3 2022Chinas GDP increased by 3.9%in Q3 and 3%in the first three quarters.Economic recovery remains under pressure amid COVID-19 control policies in Q4.November 2022Major economic indicators p2/Policy updates p11/Hot topic analysis p13Content1Major economic indicators2Total

2、 GDP reached 87 trillion yuan with 3%growth Total fixed asset investment reached 42 trillion yuan,a 5.9%increase Total real estate investment reduced by 8%to 10 trillion yuan PMI rebounded to above 50.1%in SeptemberIndustrial added values grew 3.9%in in the first three quartersTotal retail sales of

3、consumer goods decreased by 0.7%to 32 trillion yuanImports and exports increased by 9.9%to 31 trillion yuan PPI dropped to 0.9%and CPI went up 2.8%in September2456789102Policy updates11Growth of aggregate financing to the real economy reached 10.6%Fiscal revenue decreased by 6.6%while fiscal spendin

4、g grew by 6.2%11123Hot topic analysis:What does the 20th National Congress of the CPC mean for Chinas economy?131Major economic indicatorsChinas economic recovery significantly improved in the third quarter compared to Q2.GDP increased by 3.9%in Q3 year-on-year(YoY)while it was 0.4%in Q2.However,the

5、 COVID-19 control policies might pose a challenge for the domestic economy in Q4.On a quarterly basis,GDP also increased by 3.9%,comparatively it contracted by 2.6%in Q2.Total GDP reached 87.03 tn yuan by Q3,increasing by 3%YoY increase.As a result,it is almost certain that Chinas target annual grow

6、th rate of 5.5%is out of reach.If the current COVID-19 situation in China and economic slowdown across the worldcontinue till the end of the year,it might be difficult to see more than 3%growth in 2022.On the other hand,while many countries are facing high inflation,and some suffer energy shortages,

7、China still managed to maintain economic stability.Once COVID-19 control policies ease,the economy is expected to stage a rapid recovery in 2023.Additionally,slower economic growth has translated into dramatic impacts on the employment market,especially for the groups of self-employed and flexibly-e

8、mployed,as well as fresh college graduates,and migrant workers.The total number of self-employed or individual businesses (with average number of 2.68 employees and mainly operate in retail,accommodation and catering,and resident services)is slightly more than 100 mn and the flexibly-employed group

9、is around 200 mn according to the 2021 year end data.By the end of Q3,the national urban surveyed unemployment remained at 5.6%.In September,the unemployment rate was 5.5%,slightly less than April.The unemployment rate for the 25 to 59 age group was less severe,increasing to 4.7%from 4.5%in June.How

10、ever,the employment situation for migrant workers and college graduates did not see much improvement in Q3,with September unemployment rate among migrant workers standing at 5.5%.By the end of Q3,a total of 182.7 mn rural workers had migrated for work.The unemployment rate for the 16 to 24 age group

11、 remained high but improved to 17.9%from 19.3%in June.Meanwhile,the urban surveyed unemployment rate in 31 major cities remained at 5.8%in September.Lastly,as the downturn of the global economy has been worse than previously forecasted,China will face a more challenging external environment in the r

12、est of 2022 and 2023.More specifically,the International Monetary Fund(IMF)predicted that global economic growth will decline from 6%in 2021 to 3.2%in 2022 and 2.7%in 2023.The causes of slowdown include the COVID-19 pandemic,the war in Ukraine,inflation,as well as tightening financial conditions,amo

13、ng other factors.In 2022,sea changes took place in the world.The pandemic has been lasting for three years,coupled with geopolitical tensions highlighted by the Russia-Ukraine conflict,energy crisis in Europe,soaring global inflation,and financial market turbulence-all these factors combined to disr

14、upt the pace of global economic recovery.Last but not least,the global climate is nothing close to normal as seen by recent extreme weather events.Many people are worried about the future of the world.IMF expects that Chinas GDP growth will reach 4.4%in 2023.Given a relatively low base in 2022,upcom

15、ing reopening effects,strengthening of domestic circulation within the economy,and expected reform measures by the new administration after a reshuffling of key officials(a new premier to be in place early next year),it is still possible for the Chinese economy to return to 6%growth next year.Quarte

16、rly GDP values and quarterly and annual GDP growth rate21.70%1.40%1.30%1.10%-10.10%11.60%3.20%2.40%0.80%1.40%0.40%1.30%1.60%-2.70%3.90%6.00%2.20%8.10%6.30%6%5.90%5.80%-6.90%3.10%4.80%6.40%18.30%7.90%4.90%4%4.80%0.40%3.90%-15.00%-10.00%-5.00%0.00%5.00%10.00%15.00%20.00%0.005.0010.0015.0020.0025.0030.

17、0035.00Quarterly GDP valueQuarter-on-quarter growthAnnual GDP growthQuarterly YoY growthSource of data:Unless otherwise stated,economic data is from the National Bureau of Statistics,Wind and financial data from the Peoples Bank of China.GDP(Trillion yuan)In the first three quarters,the outputs of t

18、he primary,secondary and tertiary industries were 5.48,35.02 and 46.53 tn yuan respectively.The corresponding growth rates were 4.2%,3.9%and 2.3%YoY.Economic contributions of the primary,secondary and tertiary industries to GDP growth were 6.29%,40.24%,53.47%respectively.More specifically in Q3,nati

19、onal GDP reached 30.76 tn the outputs of the primary,secondary and tertiary industries were 2.56,12.16,and 16.04 tn yuan respectively.The growth rates of the primary,secondary and tertiary industries(services)were 3.4%and 5.2%and 3.2%.As a result,the primary,secondary and tertiary industries account

20、ed for 8.34%,39.51%,and 52.15%respectively of total GDP in Q3.In the first three quarters,consumer demand continued to recover on the back of supportive policies promoting consumption and stabilising growth.As a result,final consumption expenditure contributed 52.4%to economic growth boosting GDP gr

21、owth by 2.1 percentage points.In the first three quarters,gross capital formation boosted economic growth by 0.8%and contributed 26.7%to growth.With the continuous rollout of measures to stabilise the domestic economy,the construction of major projects has accelerated,and the scale of investment has

22、 continued to expand.Net exports also grew rapidly.In the first three quarters,net exports of goods and services contributed 32%to economic growth,and 1%to GDP growth.In the third quarter,net export of goods and services contributed 27.4%to economic growth and 1.1%to GDP growth.As global economic gr

23、owth declined and international demand for Chinese goods would also fall,Chinas export may slow down considerably in Q4.In Q4,while investment might remain relatively stable,consumption would remain under pressure in view of ongoing COVID-19 curbs across the country.39.72%9.18%8.58%7.77%7.89%8.38%7.

24、97%8.34%40.50%39.47%39.75%39.71%38.41%37.79%39.16%39.51%49.77%51.34%51.68%52.52%53.71%53.83%52.88%52.15%0%20%40%60%80%100%Primary industrySecondary industryTertiary industryProportionGDP composition 4Fixed Asset InvestmentTotal fixed asset investment reached 42.14 tn yuan in the first three quarters

25、,increasing 5.9%YoY.This is a combined result of promoting investment coordination mechanisms for major projects,policy-based development of financial instruments,as well as the issuance of special local government bonds to support the implementation of those projects.On a month-on-month basis,fixed

26、 asset investment rose by 0.53%in September.In Q3,fixed asset investment rose 5.7%YoY,which was 1.5 percentage points higher than that of the second quarter.For Q4,strong policy support will continue to drive the steady growth of fixed asset investment,which is more resilient to the impacts of COVID

27、-19.More specifically,by ownership,private investment reached 23.2 tn yuan in the first three quarters,increasing by 2%and accounting for 55.1%of total investment.Comparatively,the growth of private investment reduced again in Q3.In contrast,state-owned investment rose by 10.6%in the first three qua

28、rters,which is much higher than private investment.Furthermore,fixed asset investment from Hong Kong SAR-,Macao SAR-and Taiwan-owned companies increased by 3.8%in first three quarters,which is also much lesser rate than in H1.Fixed investment of foreign-owned enterprises continued to decline by 2.9%

29、.Fixed investment of domestic-owned companies,including state-owned and private enterprises,as well as collective enterprises and limited liability companies,among others,went up by 6.2%,which is at par with H1.By sector,fixed asset investment of the primary,secondary and tertiary industry increased

30、 by 1.6%,11%,and 3.9%in the first three quarters to 1.06 tn,13.21 tn and 27.87 tn yuan respectively.By industry,within the secondary industry,the industrial sector went up 11.1%.Investment in mining increased by 8.2%,while investment in the production and supply of electricity,gas and water rose by

31、17.8%in the first three quarters.Fixed asset investment in the manufacturing sector rose by 10.1%.Within the manufacturing sector,investment in the electrical machinery and equipment manufacturing grew by 39.5%;wine,beverage and refined tea manufacturing by 34.5%;chemical fiber manufacturing by 32%;

32、and textile,clothing and apparel industries by 30.8%.This is demonstrative of the strengths of Chinas manufacturing sector remains in restoring confidence about the economic outlook.However,as global GDP growth in 2023 is forecasted to be further slow down in 2022,the growing trend of manufacturing

33、investment might see a setback in Q4.In the tertiary industry,infrastructure investment increased by 8.6%.Within which,investments in water conservancy management increased by 15.5%,public facilities management by 12.8%and information transmission industry by 12.2%.Real estate investment,as one of t

34、he three key areas of fixed asset investment apart from manufacturing and infrastructure,contracted by 8%(5.4%reduction in H1)in the first three quarters.On the other hand,several other industries registered an increase of approximately 20%to 30%in fixed asset investment in H1,including:Manufacturin

35、g of computers,communications and other electronic equipment(19.9%);Healthcare and social work(29.9%);Manufacturing of chemical materials and chemical products(19.3%).Lastly,fixed asset investment in high-tech industries increased by 20.2%in the first three quarters.Of which,investment in the manufa

36、cturing of electronic and communication equipment,and medical equipment and instrumentation,grew by 28.8%and by 26.5%respectively.7.50%6.00%5.40%5.90%6.30%5.80%5.40%5.40%-16.10%-3.10%0.80%2.90%25.60%12.60%7.30%4.90%9.30%6.10%5.90%Accumulated growth rateTotal real estate investment contracted by 8%Yo

37、Y in the first three quarters,which is much worse than 5.4%in H1,reaching 10.36 tn yuan and accounting for 24.6%of total fixed asset investment(25.1%in H1,26.5%in Q1 2022;27.1%in 2021).The turmoil in the property market added to the list of Chinas biggest economic challenges,while it is still tackli

38、ng the pandemic.The strict macro control policies on property are being adjusted further by local governments.To improve the financing conditions in the housing market,the Peoples Bank of China,together with relevant departments,adopted the three arrows policy combination from the three channels of

39、credit,bond and equity to support the financing of private developers.More than one tn yuan of rescue funds has been announced to directly support real estate enterprises.More specifically,total real estate investment of residential buildings decreased by 7.5%in the first three quarters(6.4%in 2021)

40、to 7.86 tn yuan,accounting for 75.6%of total real estate investment.In addition to investment,nearly all of the other major indicators continued to see negative performance in the first three quarters.Floor space of commercial housing ready for sale(including residential and commercial buildings),wa

41、s the exception,increasing 8.1%YoY,but at the expense of rising housing inventory.More specifically,the national housing climate index has declined to a historic low of 94.86%in September.The total sales value of all properties reached 9.94 tn yuan,a decrease of 26.3%YoY in the first three quarters.

42、Among all properties,sales of residential properties reduced by 28.6%.Besides,the sales area of commercial housing was 1.01 bn square meters,down 22.2%YoY.In September,the prices of newly built properties in tier one cities of Beijing,Shanghai,Guangzhou and Shenzhen increased by 2.7%YoY.At the same

43、time,prices of resale residential properties increased by 1.2%.On the other hand,housing prices of cities in other tiers declined.In tier two cities,prices of newly built properties declined by 1.2%YoY in September while prices of resale properties decreased by 3%.In tier three cities,prices of newl

44、y built and resale properties fell by 3.8%and 4.5%respectively.In the first three quarters,the funds for real estate development enterprises reached 11.43 tn yuan,a contraction of 24.5%YoY.More specifically,4.06 tn yuan was generated from self-raised funds,a 14.1%YoY decrease.Deposits and prepayment

45、s accounted for 3.73 tnyuan,a 34.1%decrease.Personal mortgage loans and domestic bank loans contributed 1.84 and 1.37 tn yuan,registering a decrease of 23.7%and 27.2%respectively.Furthermore,in the first three quarters,many indicators declined:Total value of land transactions(final amount of transac

46、tions of land use rights by the developers)shrank by 46.2%to 502 bn yuan(2021:2.8%increase to 1.78 tn yuan).Land acquisition area,also known as volume of land purchased,contracted by 53%(2021:15.5%decrease).Floor space of buildings,including residential and commercial buildings,at the start of const

47、ruction decreased by 38%(2021:11.4%decrease);residential space decreased by 38.7%.Additionally,in the first three quarters:Floor space of completed residential buildings reduced by 19.9%(2021:11.2%increase).Total floor space of residential buildings sold reduced by 25.7%(2021:1.9%increase).Floor spa

48、ce under construction also decreased by 5.3%(2021:5.2%increase).Since stabilising economic growth is a top priority in Q4 and in 2023,while many sectors have been seriously hit by repercussions of the COVID-19 control policy,China may not have many options available other than to further adjust some

49、 of the macro control policies on the property market.Growth rates in real estate 533.0%16.9%4.8%-7.5%-11.8%-9.3%-10.2%-8.5%-11.0%-11.2%-15.5%-42.3%-41.8%-46.5%-45.7%-48.3%-48.1%-49.7%-53.0%51.2%41.4%35.2%29.9%23.5%18.2%14.8%11.1%8.8%7.2%4.2%-17.7%-19.6%-23.6%-25.8%-25.3%-25.4%-25.0%-24.5%38.3%25.6%

50、21.6%18.3%15.0%12.7%10.9%8.8%7.2%6.0%4.4%3.7%0.7%-2.7%-4.0%-5.4%-6.4%-7.4%-8.0%-60%-40%-20%0%20%40%60%Growth rate of land purchasedGrowth rate of sources of fundsGrowth rate of investmentPurchasing Managers IndexChinas Purchasing Managers Index(PMI)for the manufacturing sector was 49%,49.4%,and 50.1

51、%in July,August,and September respectively.It is still relatively weak due to the resurgence of COVID-19 cases across the country.In September,as the stimulus package to stabilise the economy continued to take effect and the impact of the hot weather receded,the business climate has improved for the

52、 manufacturing sector with the PMI returning to the expansion zone of above 50%.In September,the manufacturing sector entered the traditional peak season,with enterprises production activity picking up,supporting an increase of the production index to 51.5%,up 1.7 percentage points from the previous

53、 month and back in the expansion zone.At the same time,in order to meet production needs,enterprises accelerated the purchase of raw materials,lifting the purchase quantity index to 50.2%.Besides manufacturing PMI,the non-manufacturing business activity index and the composite PMI output index were

54、50.6%and 50.9%respectively in September(54.7%and 54.1%in June),both above the critical point of 50%for four consecutive months.As COVID-19 cases are still spreading in many provinces,pandemic prevention and control measures might further impact the PMI readings in Q4.More specifically,in September,a

55、mong the 13 sub-and related-indices of manufacturing PMIs,nine were lower than 50%.Meanwhile,among the five key subindices that form the manufacturing PMI,the production index was above the critical point of 50%,while the new order index,raw material inventory index,employment index and supplier del

56、ivery time index were all below 50%.Among the 13 sub-and related-indices of manufacturing PMIs,in September,similar with June,the three indices with the highest readings were the expected production and business activities index(53.4%,1.1%higher than the previous month,indicating a pick-up in sentim

57、ent among manufacturers),production index(51.5%),purchase price of main raw materials index(51.3%).In September,the three indices with the lowest readings were the open orders index(44.1%),new export orders index(47%)and producer price index(47.1%).In terms of industries,in September,the production

58、index of food,wine and beverage,refined tea,medicine,non-metallic mineral products,ferrous metal smelting and processing,general equipment manufacturing and other industries all rose to 54%or above.PMI for large,medium-sized companies,and small businesses were all relatively weak compare to historic

59、al average.PMI for large enterprises,once dropping below 50%in July,increased to 51.1%in September.PMI for medium-sized companies went down to 49.7%,up 0.8 percentage points from the previous month.Meanwhile,PMI for small businesses continued to remain in contraction zone at 48.8%,up 0.7 percentage

60、points from the previous month.The non-manufacturing PMI returned above the critical point in Q3.In September,the non-manufacturing business activity index was 50.6%,down 2%from the previous month,indicating an overall slowdown of the non-manufacturing sector.The service sector showed slight contrac

61、tion.In September,affected by COVID-19,the business activity index of the service sector dropped to 48.9%,3%lower than that of the previous month,indicating a weakening service sector.Among the 10 sub-indices,only three were above 50%,including business activity index(50.6%),input price index(50%),a

62、nd business activities expectation index(57.1%).The business activity index for the service sector was 48.9%in September,down 3%from the previous month.By sector,the index of business activity in producer services continued to be in expansion territory.The construction business activity index was 60

63、.2%,up 3.7%from the previous month.The business activity index of postal service,telecommunication,radio,television and satellite transmission service,monetary and financial service industries were all above 60%.The consumer services business activity index fell into contraction territory as COVID-l

64、ed disruption caused a-downturn in the services sector in September.Retail,air transport,accommodation,catering and residential services fell considerably to 45%or lower.654.8%54.2%53.7%53.5%52.3%54.4%55.9%55.7%56.3%53.5%53.2%52.7%48.4%54.7%50.6%50.5%49.4%49.8%50.2%52.0%50.9%51.5%51.9%51.9%50.9%49.6

65、%50.3%49.5%50.2%50.1%48%49%50%51%52%53%54%55%56%57%PercentageNon-manufacturingManufacturing sector50%threshold7Growth of Industrial Added Values for companies over designated size rose by 3.9%(in real growth rate after deducting price factors)YoY in the first three quarters,as industrial chains and

66、supply chains recovered steadily.It increased by 4.8%in Q3 and was 4.1%higher than Q2.In September,industrial added values went up 6.3%YoY,an increase of 0.84 percentage points month-on-month.In Q3,the Utilisation Rate of National Industrial Capacity was 75.6%,up 0.5%compared to Q2.Among them,capaci

67、ty of equipment manufacturing and consumer goods manufacturing were 77.3%and 75%,respectively,up 1.7 and 0.6 percentage points from Q2.Among the 41 industrial categories,25 industries showed a rise in capacity utilisation.In the first three quarters,the total profit of industrial enterprises above d

68、esignated size was 6.24 tn yuan,down 2.3%YoY.Meanwhile,total revenues of these companies rose by 8.2%,reaching 100.17 tn yuan.More specifically,in September,the added value of the mining industry grew 9.2%YoY while manufacturing grew 6.4%.The production and supply of electricity,heat,gas and water g

69、rew 2.9%.In the first three quarter,these figures increased by 8.5%,3.2%,and 5.6%YoY respectively.Among the 20 sectors assessed by the National Bureau of Statistics,the industry added values of seven sectors reduced.Three of these had close to 10%growth including:Coal mining and washing(10.4%);Elect

70、rical machinery and equipment manufacturing(11.4%);Computer,communication and other electronic equipment(9.5%).Furthermore,according to the China Association of Automobile Manufacturers(CAAM),car output and sales in the first nine months increased by 7.4%and 4.4%(decreased by 3.7%and 6.6%in H1)YoY t

71、o 19.63 and 19.47 mn units respectively.The growth rate was 2.6%and 2.7%higher than that of the first eight months.Among them,the rapid growth of monthly production and sales in the third quarter helped stabilise and fuelled the recovery of the industry.Since late May,a series of policies have been

72、introduced to stabilise growth and promote consumption.Among them,the policy of reducing purchase tax for small-engine cars by half has greatly stimulated the ailing automobile market.From June to September,the automobile market continued to rise and maintain a relatively high growth rate,reaching t

73、he highest level in the same period of the past three years.The production and sales of new energy vehicles hit a record high,with automobile exports also performing well.From January to September,the production and sales of new energy vehicles reached 4.72 mn and 4.57 mn,respectively,up 1.2 times a

74、nd 1.1 times YoY,with a market share of 23.5%.As a result,Chinas new-energy vehicle sales is expected to reach 5.5 mn in 2022,up more than 56%YoY,according to CAAMs forecast.Automobile exports reached 2.12 mnunits,up 55.5%YoY,exceeding the annual export volume of 2.01 mn in 2021,with Mexico being th

75、e core incremental market in the first nine months.By ownership,while total profit for all industrial companies over designated size decreased by 2.3%YoY in the first three quarters,only profits of SOE went up,Profits of state-owned enterprises(SOEs)increased by 3.8%to 2.09 tnyuan;Profits of foreign

76、-owned enterprises(including Hong Kong SAR,Macao SAR and Taiwan)decreased by 9.3%to 1.48 tn yuan;Profits of joint-stock enterprises decreased by 0.4%to 4.56 tn yuan;Profits of private companies decreased by 8.1%to 1.7 tn yuan.Lastly,by industry,In the first three quarters,the profits of the equipmen

77、t manufacturing increased by 0.6%YoY,accounting for 31.5%of all industries above designated size.Profits of the production and supply of electricity,heat,gas and water increased by 4.9%,among which the power industry saw an 11.4%increase in profits,driven by rising demand for electricity and falling

78、 coal prices.Under the influence of high commodity prices,mining profits maintained a relatively high growth.Mining profits rose 76%,coal mining by 88.8%,and oil and gas extraction by 1.12 times.The above industries are mostly dominated by SOEs.8.50%6.30%5.80%6.90%-1.10%4.80%6.90%7.30%14.10%8.30%3.1

79、0%4.30%5.00%3.90%6.30%Growth rateIndustrial Added Values 8Total retail sales of consumer goods increased by 0.7%YoY to 32.03 tnyuan in the first three quarters.The COVID-19 pandemic was still the biggest threat for consumption.By quarter,the third quarter grew by 3.5%,compared to a 4.6%fall in the s

80、econd quarter and a 3.3%growth in the first quarter.Consumption in the third quarter recovered from a low of the second quarter,but remained relatively weak.The consumer market has seen wild fluctuation due to the resurgence of COVID-19 cases.On a monthly basis,it maintained rapid growth at the begi

81、nning of the year,only to fall to a low in April before gradually recovering after June.Sales growth slowed again in September.In the first three quarters,retail sales of urban consumer goods reached 27.78 tn yuan,up 0.7%,and rural consumer goods edged up 0.9%to 4.26 tn yuan.Zooming in the types of

82、consumption in the first three quarters,retail sales of goods reached 28.91 tn yuan,up 1.3%YoY,while catering revenue reached 3.12 tn yuan,down 4.6%YoY.In September,total retail sales of consumer goods increased 2.5%YoY,2.9%lower than that in August.Among them,the retail sales of goods increased by

83、3%,2.1%lower than that in the previous month.Catering revenue fell 1.7%after rising 8.4%in August.Out of the 16 retail categories,five recorded negative growth in the first three quarters.In September,market contraction extended to seven categories.Categories with negative growth in the first three

84、quarters include catering(-4.6%);clothing,shoes,hats and textile(-4%);furniture(-8.4%);and cosmetics(-2.7%).Furthermore,sales of supermarkets,convenience stores,specialty shops,and exclusive shops grew by 4%,4.9%,5.1%,and 0.7%YoY respectively in the first three quarters,while sales of department sto

85、res decreased by 6.3%.National online retail sales went up 4%to reach 9.59 tn yuan in the first three quarters.Online retail sales of physical goods rose by 6.1%to 8.24 tn yuan,accounting for 25.7%of total retail sales of goods.Among online retail sales of physical goods,the sales of food,clothing a

86、nd daily necessities increased by 15.6%,4.7%and 5.2%respectively.The ramifications of the COVID-19 pandemic is likely to weigh on consumer market in Q4,hindering the recovery of catering and small and micro trading companies.The consumer market would continue to recover,albeit a relatively weak foun

87、dation for recover,should consumption-boosting policies succeed in increasing peoples willingness and ability to consume.Per capita disposable nominal income rose to 27,650 yuan in the first three quarters,an increase of 5.3%YoY.After deducting price factors,it was growing 3.2%YoY in real terms,on t

88、he strength of a series of policies aimed at ensuring stable employment and peoples livelihood.For the following data,nominal growth rates are represented on a YoY basis unless specified otherwise.For urban residents,the average income rose by 4.3%to reach 37,482 yuan.In the meantime,the average inc

89、ome of rural residents grew 6.4%to 14,600 yuan.The growth of rural residents income was mainly supported by infrastructure investment and major project construction(thereby creating employment opportunities for rural workers),as well as bumper grain harvest in the summer months,increasing corn and w

90、heat prices,and rising pork and egg prices.Besides,according to a national monitoring survey of migrant workers,the number of active worker in the rural labor force at the end of the third quarter was 182.7 mn,basically unchanged from the same period last year.The average monthly income of migrant w

91、orkers was 4,586 yuan,an increase of 3%over the same period last year,or a minor growth after deducting price factors.By source of income,wage income continues to grow.Wage income continued to grow,since government continued to step up assistance to enterprises to maintain overall stability in emplo

92、yment,creating favorable conditions for wage-based income growth.Thanks to the increase in basic pension for urban and rural residents,the per capita pension for urban and rural residents increased by 8.4%over the same period last year.On the other hand,in the first three quarters,per capita consump

93、tion expenditure reached 17,878 yuan,up 3.5%(or 1.5%after deducting price factors,).Per capita consumption expenditure of urban residents was 22,385 yuan,up 1.8%,(or down 0.2%in real terms).Meanwhile for rural residents,per capita consumption expenditure reached 11,896 yuan,up 4.3%.If the spread of

94、COVID-19 still maintains at high levels in Q4,both income and consumption expenditure would not see much improvement,and as a result,dampening total retail sales.Retail Sales of Consumer GoodsAccumulated growth rate8.30%8.40%8.20%8.00%-19.00%-11.40%-7.20%-3.90%33.90%23.00%16.40%12.50%3.27%-0.70%0.70

95、%9Chinas total imports and exports increased by 9.9%in the first three quarters YoY to 31.11 tn yuan.Similar to H1,it registered the highest growth among the major economic indicators,amid the ongoing pandemic and the abrupt slowdown of global economic growth.More specifically,exports increased by 1

96、3.8%to 17.67 tn yuan,while imports increased by 5.2%to 13.44 tn yuan.The trade surplus increased by 53.7%to 4.23 tn yuan or around US$645 bn.In September,the import and export value was 3.81 tn yuan,up 8.3%.Of which,export value made up 2.19 tnyuan,up 10.7%;Imports reached 1.62 tn yuan,up 5.2%;The t

97、rade surplus increased by 29.9%to 574 bn yuan.In US dollar terms,the value of imports and exports in September was US$561 bn,up 3.4%,and growth rate diminished as a result of yuan depreciating against the US dollar in the period.Looking into Q4 and 2023,the forecasted slowdown in global GDP growth i

98、s compared to 2022 will inevitably translate into weaker demand,affecting Chinas foreign trade.By product,in the first three quarters,the import and export of mechanical and electrical products reached 10.04 tnyuan,up 10%and accounting for 56.8%of Chinas foreign trade.The General Administration of C

99、ustoms did not hold a news conference because of the 20th CPC National Congress,but instead released some import and export data that it rarely discloses.More specifically,export of,automatic data processing equipment and its components were 1.18 tn yuan,up 1.9%;mobile phone reached 672 bn yuan,up 7

100、.8%;surprisingly,automobiles totalled260 bn yuan,up 67.1%.During the same period,exports of labor-intensive products reached 3.19 tnyuan,up 12.7%and accounting for 18%of total exports.Among them,clothing and clothing accessories were 881 bn yuan,up 11.1%;textile products reached 747 bn yuan,up 9.7%;

101、plastic products reached 526 yuan,up 14.5%.In addition,the export of steel was 51.21 mn tons,down 3.4%;35.45 mn tons of refined oil,down 27.6%;17.27 mn tons of fertilizer,a decrease of 33.8%.In terms of imports,iron ore imports fell along with prices,while imports of crude oil,coal,natural gas and s

102、oybeans fell amid rising prices.More specifically,imports of:iron ore reached 823 mn tons,down 2.3%(price down 29.7%)with total value of 669 bn yuan;crude oil were 370 mn tons,down 4.3%(price up 55.1%),with total value of 1,779 bn yuan;201 mn tons of coal,down12.7%with a price increase of 66.2%and t

103、otal value of 199 bn yuan;81.16 mn tons of natural gas,down 9.5%with a price increase of 60.7%and total value of 325 bn yuan;soybeans were 69.04 mn tons,down 6.6%with a price increase of 25.8%and total value of 305 bn.The import of mechanical and electrical products stood at 5.2 tn yuan,down 3.8%.Am

104、ong them,there were 417 bn integrated circuits,down 12.8%,with a total value of 2.07 tn yuan,up 2.6%;The number of automobiles(including chassis)stood at 671,000,down 11%,with a value of 270 bn yuan,down 0.2%.By geography,according to the General Customs Administration,in the first three quarters,tr

105、ade values with ASEAN,EU,the US,South Korea,reached 4.7,4.23,3.8,and 1.81 tn yuan respectively.These trade figures grew by 15.2%(ASEAN),9%(EU),and 8%(US),and 7.1%(South Korea)in the first three quarter.The trade surplus with ASEAN was 754 bn yuan,surging by 93.4%.The trade surplus with the EU increa

106、sed by 58.8%to 1.39 tn yuan.The trade surplus with the US increased moderately by 14.2%to 2.07 tn yuan.The trade deficit with South Korea narrowed by 34.2%to 207 bn yuan.During the same period,Chinas total imports and exports to countries and regions along the Belt and Road reached 10.04 tn yuan,up

107、20.7%.Of which,export was 5.7 tn yuan,up by 21.2%while imports reached 4.34 tnyuan,up 20%.By ownership,imports and exports of private enterprises grew rapidly and their proportion of total trade increased.In the first three quarters,import and export of private enterprises reached 15.62 tn yuan,an i

108、ncrease of 14.5%,accounting for 50.2%of Chinas total foreign trade,which is 2%higher than the same period last year.The export was 10.61 tn yuan,up 19.5%,accounting for 60%of the total export value.Imports reached 5.01 tn yuan,up 5.4%,accounting for 37.3%of the total.During the same period,the impor

109、t and export of foreign-invested enterprises reached 10.42 tn yuan,up by 2%,accounting for 33.5%of Chinas total foreign trade.Of which,export stood at 5.63 tn yuan,up 5.6%and imports was down by 1.8%to 4.79 tn yuan.Imports and exports of state-owned enterprises reached 5.02 tn yuan,up 15.1%,accounti

110、ng for 16.1%of the countrys total foreign trade.Of which,export was up by 10.8%to 1.41 tn yuan,while imports increased by 16.9%to 3.61 tn yuan.Quarterly Balance of Trade-11.70%4.16%9.75%10.84%38.54%19.93%14.36%17.76%13.16%12.78%13.80%-0.96%-5.47%4.77%0.34%20.69%32.40%15.70%18.65%8.44%1.81%5.20%-20.0

111、0%-10.00%0.00%10.00%20.00%30.00%40.00%50.00%Export growthImport growthProducer Price Index and Consumer Price Index2.30%2.70%3.00%4.50%4.30%2.50%1.70%0.20%0.40%1.10%0.70%1.50%1.50%2.50%2.80%0.40%0.00%-1.20%-0.50%-1.50%-3.00%-2.10%-0.40%4.40%8.80%10.70%10.30%8.30%6.10%0.90%-6%-4%-2%0%2%4%6%8%10%12%CP

112、IPPIGrowth(contraction)rateIn the first three quarters,prices in the consumer sector rose modestly,while the growth of prices in the production sector declined.The growth of Producer Price Index(PPI)gradually eased.In the first three quarters,PPI rose 5.9%YoY,1.8%lower than in H1.It rose 8.7%in Q1,6

113、.8%in Q2 and 2.5%in Q3,with growth rate falling quarter by quarter.By month,PPI growth slowed from 9.1%YoY in January to 6.1%in June,after which he pace of decline accelerated with the growth rate of PPI falling to 4.2%and 2.3%,respectively in July and August.In September,PPI rose 0.9%,down 1.4%and

114、0.5%lower than the previous two months,pointing to a moderate trend of decline.Furthermore,there were multiple factors contributing to the decline in PPI growth.In addition to the comparatively high base of the same period last year,it is also influenced by three other factors.First,steady progress

115、has been made to stabilise supply and prices by the government.Second,the import price pressure has eased with the sharp fluctuation of international commodity prices(for instance,since June,the decline in international commodity prices has led to lower price increases in domestic oil and natural ga

116、s,chemical raw materials and chemical manufacturing industries).Third,market demand in certain industries was still weak,as impacted by COVID-19 and reduced investment in real estate development.Among the subindices of PPI for manufactured goods,the price for means of production increased by 7.4%in

117、the first three quarter.The growth rate was 2.5 percentage points lower than in the first half year.To some extent,the less-than-expected price increase in means of production has alleviated the cost pressure faced by middle and downstream enterprises.Among which,the prices of mining,raw material an

118、d processing industries increased by 33.4%,16.7%and 4.9%respectively.In June,producer prices for mining rose by 24.9%,raw materials by 13.8%and processing industries by 3.1%.The growth rate was 8.5,2.9 and 1.8 percentage points lower than that of the first half year.On the other hand,PPI for consume

119、r goods remained under pressure and only increased by 1.3%in the first three quarters.Food prices went up 2.3%,clothing up 1.6%and general daily necessities up 1.6%.In September,the prices of international crude oil and other bulk commodities continued to fall.As the demand from some industries pick

120、ed up,prices of industrial goods were moderately trending downward.On a year-on-year basis,PPI rose 0.9%,1.4%lower than the previous month.The price of means of production increased by 0.6%and the price of consumer goods by 1.8%.Prices rose in 30 of the 40 industrial sectors surveyed,down two from t

121、he previous month.More specifically,the PPI for manufactured goods of the following sectors increased by around 10%YoY in the first three quarters:Mining(24.9%);raw materials(12.4%)Mining and washing of coal(30.5%);Petroleum and natural gas extraction(43.1%);Processing of petroleum,coking,processing

122、 of nucleus fuel(29.5%);Manufacturing of chemical raw material and chemical products(12.5%);Production and distribution of gas(17.1%).The Consumer Price Index(CPI)increased by 2.8%in September YoY and 2%in the first three quarters,still much lower than the official target of around 3%.More specifica

123、lly,In the first three quarters,CPI rose by 2%which was 0.3 percentage points higher than that in the first half year.It rose 1.1%in the first quarter,2.3%in the second and 2.6%in the third.In July,due to high temperatures and rising pork prices,CPI growth rate increased to 2.7%YoY.In August,the dec

124、line in international oil prices and the pandemic-induced reduction in consumer demand for services resulted in a 2.5%fall in the CPI falling.In September,CPI growth expanded to 2.8%due to seasonal factors.In the first three quarters,food prices rose 2%YoY,contributing about 0.36%to the CPI increase

125、.The prices of some fresh food products rose by 13.5%,with fresh fruits,vegetables,and potatoes up by 8.7%,8.7%and 6.3%,respectively,contributing to the CPI by 0.48 percentage points.The prices of edible vegetable oil and flour rose by 6.7%and 6%,respectively,due to persistently high international g

126、rain prices.Since July,pork prices have started to rise YoY,but in the first three quarters,they still fell by 18%on average dragging down the CPI by about 0.30 percentage points.In the first three quarters,energy prices rose considerably by 13.2%YoY,0.8 percentage points lower than in H1,contributi

127、ng about 0.93 percentage points to CPI increase and accounting for over 40%of the total CPI increase.Among them,gasoline,diesel and LPG prices rose 24.8%,27.1%and 22.4%respectively,with a combined effect of boosting the CPI by about 0.86 percentage points.The prices of coal for residential use and n

128、atural gas for vehicle use remained relatively high,up 6.9%and 5.5%respectively.10Policy updates11Aggregate financing to the real economy(flows)-5,00005,00010,00015,00020,00025,00030,00035,00040,000Aggregate financing to the real economyRMB loans to the real economyForeign currency-denominated loans

129、 to the real economyEntrusted loansTrust loansUndiscounted banks acceptancesNet financing of corporate bondsDomestic equity financing by non-financial enterprises24683Billion yuanSource:WindGrowth of aggregate financing to the real economy increased by 10.6%in the first three quarters.Acc

130、ording to the Peoples Bank of China(PBoC),in order to support economic growth,it is essential to stabilise the growth of total credit,reduce financing costs for enterprises,and provide strong support to key sectors and industries affected by COVID-19.The total aggregate financing to the real economy

131、(AFRE)increased by 27.77 tn yuan in the first three quarters,3.01 tn yuan more than the same period last year.M2 money supply,which includes cash,checking deposits,and easily convertible near money,and AFRE,increased by 12.2%(3.8%higher than the same period last year)and 10.6%YoY respectively.Total

132、M2 and AFRE reached 263 and 341 tn yuan by the end of Q3.For AFRE,the balance of RMB loans reached 209 tn yuan,up 11.1%.More specifically,total RMB loans to the real economy increased by 17.89 tn yuan,1.06 tn yuan more YoY,accounting for 61.5%of AFRE in the first three quarters.Among which,household

133、 loans increased by 3.41 tn yuan,of which short-term loans and medium-and long-term loans increased by 1.09 tn yuan and 2.32 tn yuan respectively.Loans to enterprises and public institutions increased by 14.48 tn yuan in the first three quarters,of which short-term loans increased by 3.28 tnyuan,and

134、 medium-and long-term loans by 8.65 tn yuan and bill financing by 2.5 tn yuan.Net financing of government bonds reached 5.91 tn yuan,an increase of 1.5 tn yuan YoY.For enterprise direct financing,net corporate bond financing increased by 2.2 tn yuan,an increase of 241 bn yuan YoY.Equity financing of

135、 non-financial enterprises reached 874 bn yuan in the first three quarters.By the end of Q3,foreign currency loans to the real economy reached 2.18 tnyuan,down 7.1%YoY.The balance of entrusted loans stood at 11.21 tn yuan,up 2.6%.The balance of trust loans reached 3.86 tn yuan,down 24.8%.The balance

136、 of undiscounted bank acceptances was 2.92 tn yuan,down 11.2%.Total outstanding corporate bonds increased 7.7%to 31.49 tn yuan.Outstanding government bonds reached 58.98 tn yuan,up 16.9%.Total outstanding domestic stock of non-financial enterprises expanded by 14%to 10.34 tn yuan.In terms of loan st

137、ructure,61.5%of AFRE was RMB-denominated loan by the end of first three quarters,while foreign currency loans to the real economy accounted for 0.6%of AFRE;the entrusted loan for 3.3%;the trust loans for 1.1%;the undiscounted bank acceptance for 0.9%;corporate bonds for 9.2%;government bonds for 17.

138、3%and domestic stock of non-financial enterprises for 3%of AFRE.Finally,the economic outlook for Q4 is still fragile.PoBC will provide stronger support to the real economy,while stabilising employment and prices.It will focus on supporting infrastructure development,and equipment upgrading in the ma

139、nufacturing.PBoC will also take steps to stimulate housing demand,guide commercial banks to provide financing,and promote steady and sound development of the real estate market.05001,0001,5002,0002,5003,0003,5004,000EducationSocial security and employmentHealthcare and sanitationUrban and rural comm

140、unities(administration,public facilities,planning,environmental sanitation,etc.)Agriculture,forestry and water conservancyTransportationFiscal revenue decreased by 6.6%while fiscal spending grew by 6.2%.In the first three quarters,fiscal revenue dropped by 6.6%YoY to 15.32 tn yuan,as a result of slo

141、wer growth caused by renewed COVID-19 outbreaks,according to the Ministry of Finance.Excluding value-added tax credit refunds,fiscal revenue grew by 4.1%.Meanwhile,the national public budget expenditure increased by 6.2%to 19.04 tn yuan.More specifically,in terms of fiscal revenue,Central Government

142、 revenue declined by 8.6%to 6.99 tn yuan while local government revenue decreased by 4.9%to 8.32 tn yuan.However,those figures registered an increase of 3%and 5.2%respectively,when value-added tax credit refunds are excluded.National tax revenue reduced by 11.6%YoY to 12.44 tn yuan in the first thre

143、e quarter,or an increase of 1%excluding value-added tax credit refunds.Non-tax revenue increased by 23.5%to 2.88 tnyuan.As economic recovery is slower than expected,it is unlikely to see any increase of fiscal revenue in Q4.Among the 13 major sources of tax revenue,seven decreased in the first three

144、 quarters.The top five sources of tax revenue include:Value-added tax revenue:reduced by 33.4%to 3.33 tn yuan;a 2%increase after deducting value-added tax credit refunds;Enterprise income tax revenue:grew by 2.1%to 3.64 tn yuan;Domestic consumption tax revenue:grew by 7.3%to 1.31 tn yuan;Value-added

145、 tax and consumption tax revenues on imported goods:amounted to 1.53 tn yuan with an increase of 11.3%;customs duties totalled 216 bn yuan,down 3%from the same period last year.Personal income tax:grew by 9.1%to 1.14 tn yuan.Total growth of real estate-related tax revenue continued to fall in the fi

146、rst three quarters.Tax revenue from land ownership decreased by 27.1%to 440 bn yuan.Land value-added tax revenue shrank by 8.9%to 517 bn yuan.Property tax and urban land use tax revenues increased by 12.8%and 8%respectively to 242 and 160 bn yuan.Farmland occupation tax revenue went up 26.3%to 106 b

147、n yuan.In the first three quarters,the national public budget expenditure reached 19.04 tn yuan with a 6.2%YoY growth.The Central Governments expenditure increased by 7%to 2.5 tn yuan.Local government expenditure grew 6.1%to 16.54 tn yuan.Other major items contributing to fiscal expenditure included

148、:2.85 tn yuan on social security and employment(6.9%YoY increase);2.84 tn yuan on education(5.7%increase);1.59 tn yuan on agriculture,forestry and water conservancy(5%increase);1.43 tn yuan on urban and rural communities including administration,public facilities,planning,environmental sanitation,et

149、c.(0.8%decrease);1.63 tn yuan on healthcare and sanitation(10.7%increase);889 bn yuan on transportation(6.5%increase).Expenses on debt interest payments increased by 7.2%to 822 bn yuan.Spending on science and technology increased by 14%to 652 bn yuan,while spending on energy conservation and environ

150、mental protection decreased by 2.5%to 263 bn yuan.Spending on culture,tourism,sports and media was 258 bn yuan,down 1.7%from the same period last year.The growth of government funds continued to fall in Q3.It contracted by 24.8%in the first three quarters to 4.59 tn yuan.Out of which,local governmen

151、t funds reached 4.23 tn yuan after a decrease of 26.4%-3.85 tn yuan was obtained from the transfer of state-owned land use rights,a 28.3%YoY reduction.Central Government funds rose by 5.7%to 331 bn yuan.In contrast,the spending of government funds increased by 12.5%to 8.03 tnyuan.Out of which,7.67 t

152、n yuan was spent by local governments,an increase of 10.6%.Spending on the transfer of state-owned land use rights contracted by 15.2%to 4.36 tn yuan.Spending by the Central Government increased by 76.3%YoY,reaching 356 bn yuan.Lastly,the implementation of large-scale value-added tax credit refunds

153、played a key role in assisting enterprises and stabilising the economy.State-owned,private and foreign companies shall be treated equally.China will continue to implement such measure,and at the same time increase tax rebate for small and micro businesses,as well as individual businesses(self-employ

154、ed)to protect employment and peoples livelihood.12General public budget expenditureSource:Wind6Billion yuanSo what are the highlights of the Congress and the report?What does the 20th National Congress mean for Chinas economy?What does the 20th National Congress of the CPC mean for Chinas

155、 economy?The 20th National Congress of the Communist Party of China(CPC)took place in Beijing from 16 to 22 October.During which,the partys top leaders were elected and major issues settled.The Congress stressed that building a well-rounded modern socialist country is a great and arduous undertaking

156、.Xi Jinping,the re-elected general secretary for the 20th Central Committee of the CPC,and chairman of the Central Military Commission said,well be steadfast in deepening reform and opening up across the board,and in pursuing high-quality development,while also highlighting that a prosperous China w

157、ill create many more opportunities for the world.Just as China cannot develop in isolation from the world,the world needs China for its development.Source:Xinhua News 13The agenda for the week-long event was finalised during the October 15th preparatory meeting.It mostly includes the following:Hear

158、and examine the report of the 19th Central Committee.Examine the work report of the 19th Central Commission for Discipline Inspection(CCDI).Deliberate and adopting the Amendment to the Constitution of the Communist Party of China.Elect the 20th Central Committee.Elect the 20th CCDI.2,296 deputies at

159、tended the Congress,representing over 4.9mn primary-level Party organisations and 96mn Party members.After the draft report of the 19th Central Committee was issued,over 4,700 people were asked for their opinion.During the national congress,several major reports and/or documents were delivered,revie

160、wed,discussed and approved.The newly elected 20th Central Committee came into power with 205 members and 171 alternate members along with 133 members of the 20th CCDI.The following morning,the 20th CPC Central Committee re-elected Xi Jinping as the general secretary in its first plenary session,alon

161、g with seven members of the Standing Committee of the Political Bureau(Standing Committee),the Partys top leadership.Xi Jinping was also re-elected as the chairman of the Central Military Commission,the top military body of the CPC.With this,Xi Jinping will continue to serve as the head of both the

162、CPC and Chinese army.As the CPC is the ruling party in China,members of the Standing Committee are expected to take up the key roles,similar to a cabinet of ministers,during next years National Peoples Congress(NPC)and Chinese Peoples Political Consultative Conference(CPPCC),the Two Sessions.These r

163、oles include State President,Premier of the State Council(the government)and Chairman of the National Peoples Congress(national legislature),Chairman of the CPPCC National Committee,among others.Chinas Party&government organisation chart14PartyXi JinpingSupreme Peoples CourtSupreme Peoples Procurato

164、rateStateChinese Peoples Political Consultative ConferenceCommissions&DepartmentsSecretariatState CouncilMinistries&CommissionsNational Peoples CongressPresidentVice PresidentNational Party CongressCentral CommitteePolitburo Standing CommitteePolitburoGeneral SecretaryXi JinpingParty Central Militar

165、y CommissionState Central Military CommissionCentral Commission for Discipline InspectionNational Supervisory Commission Highlights of the 20th National CongressAmong the documents presented,the Report of the 19th Central Committee,presented by Xi Jinping to the congress,is the most significant in t

166、erms of economic development.Most of the other documents address either the political(party governance),discipline inspection or personnel arrangements,such as the resolution for an amendment to the Constitution of the CPC and the resolution on the work report of 19th CCDI,among others.Additionally,

167、the 20th National Congress resolution on the Revised Constitution of the Communist Party of China is another important document.The amendment addresses economic development and includes the following:China is moving toward its second centenary goal of building a great modern socialist country in all

168、 respects.China will become a prosperous,strong,democratic,culturally advanced,harmonious and beautiful country by 2049,the 100 year anniversary of the founding of the Peoples Republic of China.Promoting the great rejuvenation of the Chinese nation through a Chinese path to modernisation.The country

169、 will leverage a socialist system with Chinese characteristics including a basic socialist economic system with a socialist market economy.Public ownership plays a key role while various other forms of ownership develop together.Labour-based distribution is also prominent and coexists with multiple

170、modes of distribution.Gradually realising common prosperity for the people while leveraging the new development stage,and implementing its concept of innovation,co-ordination,green development,opening up and sharing.The country will accelerate the creation of a new development pattern for the dual c

171、irculation strategy with the domestic cycle as the key node,and the domestic and international cycles reinforcing each other.The country will promote high-quality development and give full play to the role of human resources as the primary resource.The nation will also promote the development of the

172、 national economy that is of higher quality,more efficient,fairer,more sustainable and safer.The strategic plan for building a great modern socialist country in all respects is a two-step approach.From 2020 to 2035,the country will achieve socialist modernisation.Then,from 2035 to the middle of the

173、century,China will develop into a prosperous,democratic,civilised,harmonious and beautiful modern socialist power.15The Report of the 19th Central Committee is one of the most important reports for the 20th National Congress.The 20th National Congress of the CPC adopted the Report of the 19th Centra

174、l Committee during the closing session of the Congress,hereinafter referred to as the report.The full report contains over 32,500 Chinese characters,and delegates received a 72-pages printed version.Xi Jinping presented the key points of the report during the opening session.The opening session star

175、ted at 10 am with the report delivery lasting for an hour and 50 minutes.Comparatively,the opening session of the 19th National Congress began at 9 am with the report delivery lasting over three hours.Keeping in line with the 19th National Congress,the theme of the Congress this year followed the sa

176、me line of thought,Hold high the great banner of socialism with Chinese characteristics and strive in unity to build a modern socialist country in all respects.16CPC National CongressReported byDateNo.of wordsTheme12thHu Yaobang1 September 198231,629Comprehensively creating a new situation of social

177、ist13thZhao Ziyang25 October 198723,061Advancing along the road of socialism with Chinese characteristics14thJiang Zemin12 October 199226,280Accelerating the pace of reform and modernisation,and seizing greater victory in the cause of socialism with Chinese characteristics15thJiang zemin12 September

178、 199728,330Hold high the great banner of Deng Xiaoping Theory,and pushing the cause of building socialism with Chinese characteristics into the 21st century in a comprehensive manner16thJiang zemin8 November 200228,127Building a modern socialist country in all respects,and creating a new situation f

179、or the cause of socialism with Chinese characteristics17thHu Jintao15 October 200728,002Holding high the great banner of socialism with Chinese characteristics,and struggling for a new victory in building a moderately prosperous society18thHu Jintao8 November 201229,106Steadfastly advancing along th

180、e road of socialism with Chinese characteristics,and striving to build a moderately prosperous society in all aspects19thXi Jinping18 October 201732,501Successfully building a moderately prosperous society in an all-round way,and making all-out efforts to build a great modern socialist country20thXi

181、 Jinping16 October 202232,500Hold high the great banner of socialism with Chinese characteristics and strive in unity to build a modern socialist country in all respects Summary of the 20th CPC National Congress report Great changes in the new era1)Adapting Marxism to the Chinese context2)The new jo

182、urney of the new era3)New development pattern and high-quality development4)Science,education and workforce5)Whole-process peoples democracy6)Law-based governance on rule of law7)Modernising national defense and the military12)One country,two systems and reunification13)World peace and a shared futu

183、re14)Self-governance and party building15)National security system and security and social stabilityGreen development,harmony between humanity and naturePeoples wellbeing and quality of life11)10)9)Key themes of each chapterCultural confidence and socialist culture8)The report includes the following

184、 15 chapters:1)The work of the past five years and the great changes in the first decade of the new era2)A new frontier in adapting Marxism to the Chinese context and the needs of the times3)The new journey of the new era:Missions and tasks of the communist party of China4)Accelerating the creation

185、of a new development pattern and pursuing high-quality development5)Invigorating China through science and education and developing a strong workforce for the modernisation drive6)Advancing whole-process peoples democracy and ensuring that the people run the country7)Exercising law-based governance

186、on all fronts and advancing the rule of law in China8)Building cultural confidence and strength and securing new successes in developing socialist culture9)Improving the peoples wellbeing and raising quality of life10)Pursuing green development and promoting harmony between humanity and nature11)Mod

187、ernising Chinas national security system and capacity and safeguarding national security and social stability12)Achieving the centenary goal of the peoples liberation army and further modernising national defense and the military13)Upholding and improving the policy of one country,two systems and pr

188、omoting national reunification14)Promoting world peace and development and building a human community with a shared future15)Exercising full and rigorous self-governance and advancing the great new project of party building in the new era17In the report,there are a number of key terms that appeared

189、frequently;development appeared the most,The other words make up the top ten most frequently used words in the report include18Development237 timesPeople177 timesSecurity91 timesNew era39 timesRe-unification 41 timesTechnology 43 timesEthnic 46 timesEducation49 timesModernisation83 timesReform51 tim

190、esTen most frequently used words in the Report19In comparison,the key terms most frequently used in the reports of the 18th and 19th National Congress were quite different.While development and people were the two most frequently used terms in the 18th and 19th National Congress,the rankings of many

191、 of the other high-frequency words have varied since.More specifically,reform was third in terms of the of the 18th report and fourth in terms of the 19th report,but this year,it dropped to the fifth position with security(91)and modernisation overtaking it.Frequency of keywords in the last three CP

192、C National Congress ReportsKeywords18th/2012 19th/201720th/2022Change in the last decadeDevelopment304233237-67People 145207177 32Security 365591 55Modernisation 364983 47Reform 887151-37Education 494449 0Ethnic 488446-2Technology 161743 27Reunification 294441 12New era 1393938A great country 132334

193、 21Opening up 392829-10Environment 332926-7Fight 52322 17Rejuvenation 93522 1320Frequency of keywords in the last three CPC National Congress Reports(1/2)Frequency of keywords in the last three CPC National Congress Reports(2/2)3044859233207554972328292335237 177 91

194、83 51 49 46 43 41 3934 29 26 22 22 050030035018th CPC National Congress19th CPC National Congress20th CPC National CongressSource:zgtrend2530236325541118 17 14 14 14 11 9 8 6 5 4 2 1 1 1 058th CPC National Congress19th CPC National Congress20th CPC Nationa

195、l CongressSource:zgtrend1)Development is still the top priority and GDP per capita will reach the level of moderately developed countries by 2035.Ahead of the Congress,there were some concerns that China might deprioritise economic growth.However,these concerns were unfounded as the development goal

196、 for 2035 was reinforced within the two-step strategic plan of building a great modern socialist country in all respects.The first step focuses on achieving socialist modernisation by 2035.One of the key measurements of this modernisation is the extent to which China transforms into a developed econ

197、omy.During this transformation,GDP per capita is expected to reach the level of moderately developed countries.The second part of the strategy is to build China into a great modern socialist country that is prosperous,strong,democratic,culturally advanced,harmonious,and beautiful from 2035 through t

198、he middle of this century.Earlier in 2020,during the four-day fifth plenary session,the 19th Central Committee formulated the 14th Five-Year Plan(2021-2025)for National Economic and Social Development and the Long-Range Objectives Through the Year 2035.According to the plan,GDP per capita is expecte

199、d to double from US$10,262 in 2019 to at least US$25,000 US dollars in 2035(China Economic Quarterly Q3,2020).Chinas per capita GDP exceeded 80,000 yuan in 2021,which increased from US$6,300 to over US$12,500 in 10 years.GDP per capita in China(Unit:thousands)21 What are the implications for Chinas

200、economy?39.77 43.50 46.91 49.92 53.78 59.59 65.53 70.08 71.83 80.98 7.1%7.1%6.8%6.4%6.2%6.3%6.3%5.6%2.1%8.0%0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%0.0010.0020.0030.0040.0050.0060.0070.0080.0090.002000021GDP per capitaYoY growth rateSource:National Bureau of Statisti

201、cs,Wind53,858 59,296 64,356 68,886 74,640 83,204 91,928 98,652 101,357 114,367 -20,000 40,000 60,000 80,000 100,000 120,000 140,0002000021Source:National Bureau of Statistics,WindChina GDP from 2012 to 2021(Unit:billions)22Achieving socialist modernisation also impli

202、es that China will become an innovation-driven economy in 2035 and achieve breakthroughs in core technologies,greatly improving national strengths.China will develop its soft power in the areas of culture,education,talent and sports.Since the 18th National Congress in 2012,when Xi came into power,Ch

203、inas economic growth reached new heights.From 2013 to 2021,Chinas GDP grew at an average annual rate of 6.6%,higher than the global average of 2.6%and the 3.7%average for developing economies in the same period.In 2021,at constant prices,it is 1.8 times that of 2012.In 2014,2016,2017,2018 and 2020,t

204、he total GDP surpassed the 60,70,80,90 and 100 trillion yuan marks successively,from 54tn yuan in 2012.In 2021,GDP exceeded 110tn yuan,reaching 114.4tn yuan.By the end of 2021,Chinas GDP reached 17.7 tn US dollars,more than 18%of the global GDP and 77%of the economic size of the US(23tn US dollars i

205、n 2021).Despite the COVID-19 crisis,Chinas GDP per capita grew to 12,551 US dollars(80,976 yuan),nearly reaching the level of a high-income economy.7.81.820.41.96.40.6-1.82.33.28.15.71.62.97.48.976.64.646.620.411.45.40.901.52.6-4-20246810ChinaUSAJapanGermanyUKIndiaFranceItalyCanadaSouth Korea2013202

206、1Average from 2013 to 2021Source:World BankEconomic growth rate of the top 10 economies(Unit:%)23China and the US:share of global GDP(Unit:%)Chinas contribution to the global economy is rising steadily.Based on the average annual exchange rate,Chinas economy accounted for 18.5%of the worlds economy

207、in 2021,up 7.2 percentage points from 2012,ranking second.From 2013 to 2021,Chinas average contribution to the worlds economic growth reached 38.6 percent,higher than the combined contribution of the G7 countries.This made the country the driving force for world economic growth,according to the Worl

208、d Bank.Finally,as the report emphasised,building an all-rounded modern socialist country is a difficult task.To facilitate this,China will continue to focus on economic development,deepening reform and opening up.11.44%12.53%13.31%14.83%14.73%15.14%16.06%16.36%17.40%18.28%21.78%21.92%22.20%24.29%24.

209、53%24.04%23.81%24.38%24.45%23.69%0.00%5.00%10.00%15.00%20.00%25.00%30.00%2000021ChinaUSASource:National Bureau of Statistics,Wind-5060708020132021Average from 2013 to 2021ChinaUSAJapanGermanyUKIndiaFranceItalyCanadaSouth KoreaSource:World BankContribution

210、rate to the global economic growth rate by key countries(Unit:%)242)China will continue to build a high-standard socialist market economy,create a new development pattern and pursue high-quality development.The report stated China must,first and foremost,pursue high-quality development.Development i

211、s the top priority in governing and rejuvenating China.Without solid material and technological foundations,we cannot build a great modern socialist country in all respects.In order to create a new development pattern and pursue high-quality development,the report addressed four aspects,including:Bu

212、ilding a high-standard socialist market economyModernising the industrial systemAdvancing rural revitalisationacross the boardPromoting coordinated regional developmentPromoting high-standard opening up By building a high-standard socialist market economy,state-owned enterprises,as well as private a

213、nd foreign-owned enterprises will continue to thrive in China.It is almost a national consensus that Chinas economic miracle and accomplishment in the past four decades was mainly a result of pursuing a market economy,as well as reforming the pure socialist economy(planned economy)to open up to the

214、rest of world,especially developed economies.Since the 18th National Congress,China formulated and implemented a series of policies to ensure the common development of local economies under diverse forms of ownership.As the business environment continued to improve,the reform of state-owned enterpri

215、ses saw remarkable results,the private sector was revitalised,and foreign investment and foreign trade continued to grow.Policies to support,mostly privately-owned,individual,small and micro businesses have been effective,enabling their rapid growth.In key sectors and industries,those that affect th

216、e national economy,peoples livelihood and public services,the state-owned businesses remain leaders.For instance,in 2021,total profits of state-owned industrial enterprises above a designated size reached 2.3tn yuan,a 50.0%increase from 2012 with an average annual growth of 4.6%.By the end of 2021,t

217、he net assets of state-owned industrial enterprises above a designated size reached 22.2tn yuan,a 84.0%increase from 2012 with an average annual growth of 7.0%.Since 2012,state-owned enterprises exited some industries and as a result,the total assets of state-owned enterprises from these industries

218、has reduced.At the same time,the private sector has grown stronger with significantly improved profitability and employability.Through a series of policies,including tax and fee cuts,individual,small and micro businesses received targeted support.The private economy has grown exponentially,increased

219、 profitability and created more jobs.Within which,small and medium-sized enterprises have grown rapidly.The importance of the private economy in China cant be denied,with the sector associated with the number of 56789,as they contribute more than 50%of tax revenue,60%of GDP,70%of technological innov

220、ation,80%of urban employment and make up 90%of enterprises in the country.More specifically,from 2013 to 2021,the aggregate value of private industrial enterprises above a designated size grew at an average annual rate of 8.0%.In 2021,the total profits of private industrial enterprises above a desig

221、nated size reached 2.9tn yuan,an increase of 44.4%from 2012,with an average annual growth of 4.2%.In the same year,35.82mn people were employed by private industrial enterprises above a designated size,14.7%more than 2012,accounting for 48.1%of those employed in industries above a designated size.25

222、Total assets of industrial enterprises by registration type in China(Unit:billions)0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%2000021Private enterprisesState-owned and state-controlled enterprisesForeign and Hong Kong,Macao and Taiwan invested enterprisesTotal industria

223、l value addedSource:National Bureau of Statistics10,204 11,000 6,695 7,151 6,739 6,363 6,540 3,016 4,342 15,255 18,770 21,311 22,901 23,954 24,264 23,929 28,283 34,502 6,621 7,182 7,846 8,324 8,830 9,329 9,830 9,517 10,726 10,611 11,380 11,970 11,806 12,444 12,271 12,605 13,358 14,116 -10,000 20,000

224、 30,000 40,000 50,000 60,000 70,00020001820192020State-owned enterprisesPrivate enterprisesHong Kong,Macao and Taiwan invested enterprisesForeign invested enterprisesSource:National Bureau of Statistics,WindAnnual aggregate growth rate of industrial enterprises above a designat

225、ed size in China(Unit:%)26Total profit of Chinese industrial enterprises by registration type(Unit:tn,RMB)In 2021,the total profits of small and medium-sized industrial enterprises above a designated size reached 4.7tn yuan,a 26.7%increase from 2012 with an average annual growth of 2.7%.The total pr

226、ofit of small and medium-sized industrial enterprises and large private industrial enterprises above a designated size added up to 7.6tn yuan,3.3 times more than the total profits of state-owned industrial enterprises.This figure does not include small and medium-sized private industrial enterprises

227、 below a designated size,with an annual income of less than 20mn yuan from their primary business.In the first half 2022,the import and export by private enterprises reached 9.82tn yuan,accounting for 49.6%of total foreign trade value,1.9 percentage points higher YoY.As such,the report stated,we wil

228、l provide an enabling environment for private enterprises,protect their property rights and the rights and interests of entrepreneurs in accordance with the law,and facilitate the growth of the private sector.1.86 1.64 1.49 2.28 2.09 1.68 1.56 1.82 2.28 1.48 1.71 1.82 2.03 2.92 1.70 4.70 4.53 4.54 6

229、.27 4.56 -1.00 2.00 3.00 4.00 5.00 6.00 7.0020021Q1-Q3 2022State-controlled enterprisesForeign and Hong Kong,Macao and Taiwan invested enterprisesPrivate companiesJoint-stock enterprisesSource:National Bureau of StatisticsOver the years,foreign investment and trade continued to grow,while

230、 market integration deepened.In 2021,the total profits of foreign-invested enterprises(FIEs)in the industrial sector,including Hong Kong,Macao and Taiwan above a designated size reached 2.3tn yuan,a 63.6%increase from 2012 with an average annual growth of 5.6%.In 2021,the assets of these enterprises

231、 totalled 28.8tn yuan,up 67.2%from 2012,while operating revenue reached 28.8tn yuan,a 29.8%increase from 2012.In addition to the industrial sector,FIEs made a significant contribution to Chinas economic success.As such,it comes with no surprise that China will continue to welcome foreign investors f

232、rom overall the world.In the section on promoting high-standard opening up,the report stated,We will make appropriate reductions to the negative list for foreign investment,protect the rights and interests of foreign investors in accordance with the law,and foster a world-class business environment

233、that is market-oriented,law-based and internationalised.In terms of fostering a new pattern of development,some industries are now innovation-driven,while consumption plays a fundamental role in economic growth.China is still in the middle of building a modern economic system.The ongoing refinement

234、of the industrial structure lays a solid foundation for a new development pattern.The primary industry,critical for national food security,is the foundation of the national economy.While the secondary industry has gradually developed towards an innovation-driven model,the shift towards the middle-an

235、d high-end of the industrial chain is long.Transforming and upgrading key areas of the tertiary industry are still on-going which give strong support to the sustained and healthy development of the national economy.The composition of the three industries in Chinas economy was adjusted to 7.3:39.4:53

236、.3 in 2021 from 9.1:45.4:45.5 in 2012.In the future,it is expected that service sector will account for an even larger portion of the total GDP,at the same time,China will continue to regard the real economy(secondary industry)as a vital part.Chinas economic composition of the three industries will

237、be more similar to that of the developed countries such as Germany,but quite different from the US model.Annual GDP composition9.11%8.94%8.64%8.39%8.06%7.46%7.04%7.14%7.70%7.26%45.42%44.18%43.09%40.84%39.58%39.85%39.69%38.59%37.80%39.43%45.46%46.88%48.27%50.77%52.36%52.68%53.27%54.27%54.50%53.31%0%1

238、0%20%30%40%50%60%70%80%90%100%2000021Primary industrySecondary industryTertiary industrySource:National Bureau of Statistics,Wind27Over the past years,China has built up the whole industrial chain of manufacturing industry.The independent control over the industrial

239、chain and supply chain has been improved,but China still faces many challenges as the international geopolitical landscape gets more intense.In todays world complicated by the current economic situation,no country can develop its economy completely independently.Furthermore,consumption became the ma

240、in driving force for economic growth,and the construction of a new development pattern continued to show results.Since the 18th CPC National Congress,China has thoroughly implemented the strategy of expanding domestic demand,introduced policies and measures to stimulate consumer demand,and made hist

241、oric achievements in the development of the consumer market.The advantages that came from the sheer size of Chinas market continued to play out,with consumer market sales steadily expanding.More specifically,the total retail sales of consumer goods exceeded 30 tn yuan in 2016 and 40 tn yuan in 2019,

242、and reached 44 tn yuan in 2021,and 2.1 times that of 2012.However,as we are still tackling the repercussions of COVID-19 outbreak,consumer confidence has hit a historic low and consumption has remained comparatively weak since 2020.Annual total retail sales in China(Unit:RMB billion)28Consumption gr

243、adually plays a fundamental role in the countrys economic growth.In 2021,the final consumption rate was 54.5%,up 3.4%from 2012.Among the final consumption expenditure figures,personal or household consumption expenditures maintained relatively fast growth.From 2013 to 2021,household consumption expe

244、nditure grew at an average annual rate of more than 9%,accounting for 70%in final consumption expenditure.The annual contribution of final consumption expenditure to economic growth exceeded 50%during this period.In 2021,final consumption expenditure contributed 65.4%to economic growth,51.7 percenta

245、ge points higher than gross capital formation,and was the biggest driver of economic growth.This illustrates one of the key features of a new pattern of development.20,552 23,225 25,949 28,659 31,581 34,733 37,778 40,802 39,198 44,082 12.1%11.5%10.9%10.6%9.6%9.0%6.9%6.0%-5.2%10.7%-8.0%-6.0%-4.0%-2.0

246、%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%-5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,0002000021Total retail salesActual YoY growthSource:National Bureau of Statistics,WindAnnual final consumption rate in ChinaAnnual household consumption expenditure

247、in China(Unit:RMB billion)Annual final consumption expenditures and its GDP growth contribution in China(Unit:RMB billion)2951.10%51.42%52.28%53.74%55.07%55.07%55.27%55.78%54.70%54.50%48.00%49.00%50.00%51.00%52.00%53.00%54.00%55.00%56.00%57.00%2000021Source:National

248、Bureau of Statistics,Wind19,058 21,248 23,624 26,020 28,867 32,069 35,412 38,719 38,719 43,885 69.19%69.29%69.89%69.96%70.27%70.25%69.97%70.06%69.51%70.70%68.00%68.50%69.00%69.50%70.00%70.50%71.00%-5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000200018201920

249、202021Household consumption expenditureProportion in the total final consumptionSource:National Bureau of Statistics,Wind27,544 30,666 33,803 37,192 41,081 45,652 50,613 55,263 56,081 62,092 55.40%50.16%56.32%68.98%66.00%55.90%64.00%58.60%-6.80%65.40%-20.00%-10.00%0.00%10.00%20.00%30.00%40.00%50.00%

250、60.00%70.00%80.00%-10,000 20,000 30,000 40,000 50,000 60,000 70,0002000021Final consumption expendituresGDP growth contribution of final consumption expendituresSource:National Bureau of Statistics,Wind30In a bid to pursue high-quality development,China has made dram

251、atic progress in areas such as urbanisation,high-tech manufacturing,and transportation.High-quality development comes from various sectors and areas,and rapid urbanisation is one of the many.At the end of 2021,Chinas urbanisation rate of permanent residents reached 64.72%,11.62%higher than that at t

252、he end of 2012,with an average annual increase of 1.29%since 2012.Each one per-cent increase of urbanisation rate means an immigration of 14 million people from rural areas to cities in the country.Urbanisation rate in developed countries is about 80%and that means China still has more than 15%to ca

253、tch up with international level,which would generate enormous business opportunities.Annual number of urban population in China(Unit:per million)Furthermore,triggered by rapid urbanisation,the number of cities continues to increase.In 2021,the total number of cities reached 691,or 34 more than 2012,

254、according to the National Bureau of Statistics.Among them,297 are at or above prefecture level(ranked below a province but above a county)and 394 at county level.Based on the size of registered population at the end of 2020,there were96 cities with populations of 1 million to 2 million,46 cities wit

255、h populations of 2 million to 4 million and,22 cities with populations of more than 4 million.These categories of cities were 14,15 and 8 more than those at the end of 2012,respectively.There were 47 cities with a population of less than 500,000 and 86 with a population of 500,000 to 1 million,with

256、both numbers decreasing by 7 and 22 respectively.Consequently,people are moving out from rural areas and small cities to bigger ones.The integrated development of city cluster has been improved.Central cities,such as municipalities directly under the central government,provincial capitals,major citi

257、es,have continuously enhanced their radiation functions.This trend might solidify in the coming years,as urbanisation continues to move forward.721.75 745.02 767.38 793.02 819.24 843.43 864.33 884.26 902.20 914.25 53.10%54.49%55.75%57.33%58.84%60.24%61.50%62.71%63.89%64.72%0.00%10.00%20.00%30.00%40.

258、00%50.00%60.00%70.00%-100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00 900.00 1,000.002000021Number of of urban populationShare of urban population in total populationSource:National Bureau of Statistics,Wind31Annual change in the number of cities in China Spe

259、cial attention has been given to the high-quality development of the real economy,including equipment manufacturing and high-tech manufacturing.In 2021,the added value of the manufacturing industry reached 31.4 tn yuan,an actual increase of 74.3%over 2012 with an average annual growth rate of 6.4%fr

260、om 2013 to 2021.At the same time,the added value of equipment manufacturing and high-tech manufacturing grew at an average annual rate of 9.2%and 11.6%,respectively,2.4%and 4.8%higher than that of manufacturing industries.Of which,the average annual growth rate ofaerospace and spacecraft,and equipme

261、nt manufacturing was 13.7%,electronic and communication equipment manufacturing was 13.6%,pharmaceutical manufacturing was 11.7%,and medical instruments and equipment and instrumentation manufacturing was 10.9%.In 2021,the added value of equipment manufacturing and high-tech manufacturing accounted

262、for 32.4%and 15.1%of the added value of industries above designated size,up 4.2 and 5.7 percentage points from 2012,respectively.Lastly,China will continue the implementation of the national strategy of becoming a strong manufacturer,and push industrial development toward the medium-high end.Average

263、 annual growth of added values by industry classificationIndustry classificationAverage YoY(2013-2021)Manufacturing6.40%High-tech manufacturing above the designated size 11.60%Equipment manufacturing above the designated size 9.20%Services7.40%657 658 653 656 657 661 673 679 687 691 630 640 650 660

264、670 680 690 7002000021Source:National Bureau of Statistics,WindSource:National Bureau of Statistics,Wind32Outstanding achievements in the development of the transportation sector pave the way for high quality development.The comprehensive transport network has been g

265、radually improved with the building of the worlds largest high-speed rail network and expressway network.From 2012 to the end of 2021,the length of railway increased from 98,000 km to 151,000 km.The length of high-speed railways in operation has increased from less than 10,000 km to 40,000 km.The le

266、ngth of highways increased from 4.24 million km to 5.28 mn km,of which the length of expressways increased from 96,000 km to 169,000 km.China also accelerated the building of modern and efficient urban rail transit in recent years.By the end of 2021,there were 8,736 kilometres of urban rail transit

267、lines in operation across 51 cities,while city dwellers will have access to subway systems.Operating mileage of urban rail transit in China(Unit:per 1,000 km)2.01 2.21 2.71 3.07 3.59 4.59 5.14 6.06 7.60 8.74 -1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.002000021S

268、ource:National Bureau of Statistics,Wind333)China will prioritise science and technology,education,talent,and green development.According to the report,education,science and technology,and human resources are the foundational and strategic pillars for building a modern socialist country in all respe

269、cts.It also emphasised that the country must regard science and technology as its primary productive force,talent as its primary resource,and innovation as its primary driver of growth.Science and technology are one of the vital strategic pillars for China to transform its economy into an innovation

270、-driven one.Investment in innovation,as well as science and technology has increased in recent years.Chinas total experimental research and development(R&D)expenditure surpassed Japans in 2013,making it the second largest R&D investment country in the world.In 2021,the expenditure on R&D was 2,795.6

271、 bn yuan,2.7 times that of 2012,with an average annual growth of 11.7%.The ratio of R&D expenditure to GDP was 2.44%,0.53 percentage points higher than in 2012,and close to the pre-pandemic average of 2.47%in OECD countries.Annual expenditure on R&D in China(Unit:RMB billion)Annual proportion of gro

272、ss domestic spending on R&D in GDP by OECD and OECD countries(Unit:%)1,030 1,185 1,302 1,417 1,568 1,761 1,968 2,214 2,439 2,796 18.55%15.03%9.87%8.87%10.63%12.31%11.77%12.53%10.16%14.61%0.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%16.00%18.00%20.00%-500 1,000 1,500 2,000 2,500 3,0002001520

273、01920202021Expenditure on R&DYoY growthSource:National Bureau of Statistics,Wind-0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.0020001820192020ChinaJapanUSAOECDSource:National Bureau of Statistics,Wind34Furthermore,the outputs of innovation are evidently seen,as Chinas strate

274、gic prowess in science and technology is growing faster.For example,the registration and approval of patent applications have increased significantly.In 2021,the number of patent applications granted at home and abroad reached 4.6 million,an increase of 2.7 times over 2012.Chinese applicants submitt

275、ed 69,500 international patent applications through PCT,ranking first in the world for three consecutive years.Besides,the World Intellectual Property Organisation(WIPO)report shows that Chinas ranking in the Global Innovation Index jumped from 34th in 2012 to 11th in 2022.2021 PCT top 10 countries(

276、Unit:per thousand)Annual PCT patent applications from China (Unit:per thousand)69.54 59.57 50.26 20.68 17.32 7.38 5.84 5.39 4.45 4.12 0.90%1.90%-0.60%3.20%-6.40%-5.20%-0.80%5.20%2.30%3.20%-8.00%-6.00%-4.00%-2.00%0.00%2.00%4.00%6.00%-10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00ChinaUSAJanpanSouthK

277、oreaGermanyFranceUKSwitzerlandSwedenNetherlandCountYoY growthSource:WIPO18.62 21.51 25.54 29.84 43.09 48.90 53.46 59.19 68.93 69.57 9.53%10.48%11.92%13.74%18.50%20.08%21.15%22.30%25.07%25.10%0.00%5.00%10.00%15.00%20.00%25.00%30.00%-10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.002001520162

278、00202021QuantityProportion in the WorldSource:National Bureau of Statistics,Wind35In terms of human resources in the science and education field,China is now home to the largest number of R&D personnel in the world.In 2021,the total number of full-time R&D personnel in China amounted to 5

279、.62 million,up 73.1%from 2012,ranking first in the world for nine consecutive years.Chinas quality of academic paper outputs grew dramatically.A total of 97,000 Chinese scientific and technological papers made their way into the collection of three major international retrieval tools(namely SCI,Scie

280、nce Citation Index,EI,Engineering Index and CPCI-S,Conference Proceedings Citation Index-Science Biostatistics),2.5 times of that in 2012.Besides its strength in academic research,Chinas higher education also reached the worlds medium-high level,as university enrollment rate has increased significan

281、tly over the years.The report also emphasised the countrys plan to carry out coordinated industrial restructuring,pollution control,ecological conservation,and climate response.China will also cut carbon emissions,expand green and low-carbon development.The 2022 Global Innovation Index ranking by sc

282、ore50.851.853.65555.355.956.957.257.357.85859.761.661.864.6505254565860626466CanadaHK,ChinaJapanFranceChinaDenmarkFinlandGermanySingaporeSouth KoreaNetherlandUKSwedenUSASwitzerland0987654321Source:World Intellectual Property Organisation 36The green development contains four major aspects

283、,such as transition to a model of green development,pollution prevention and control,sustainability in the ecosystems,and peak carbon emissions and carbon neutrality.China has continuously improved the quality of its ecological environment,gradually advancing along the path of ecological development

284、.More specifically,remarkable progress has been achieved to protect air,waters and soil.For instance,in 2021,87.5%of the days in cities had good air quality on average,up 6.3%from 2015.The average annual concentration of PM2.5 was 30 micrograms per cubic metre,down 34.8%.Monthly air quality in 388 c

285、ities of ChinaIn order to achieve carbon peaking in 2030 and carbon neutrality by 2060,energy production and consumption will need to be transformed to make them clean,low-carbon,safe and efficient.In 2021,clean energy such as natural gas,water,nuclear and solar power accounted for 26.4%of Chinas to

286、tal energy production,11.1 percentage points higher than that in 2012.China now ranks first in the world in terms of the number of installed hydropower,wind power,solar power and nuclear power plants,and has become a global leader in non-fossil energy.In 2021,Chinas primary energy production totalle

287、d4.33 billion tons of standard coal,an increase of 23.2%over 2012 with an average annual growth of 2.3%.The output of raw coal was 4.13 bn tons,an increase of 4.6%over 2012.On the other hand,in 2021,natural gas output was 207.6 bn cubic metres,up 87.7%,while crude oil output stood steadily at 19.88

288、mntons.Chinas installed power generation capacity reached 2,376.92 mn kW,up 1.1 times from 2012.-10 20 30 40 50 60 700%10%20%30%40%50%60%70%80%90%100%Average percentage of days with good air Monthly average PM2.5 concentrationSource:National Bureau of Statistics,Wind37Annual installed capacity of po

289、wer generation in China(Unit:million kilowatts)Share of major energy sources in total energy consumption in ChinaSolar PV installed capacity in the world(Unit:billion watt)0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%2000021Crude coalCrude OilNatural gasHydropower,nuc

290、lear power,wind powerSource:National Bureau of Statistics,Wind-500.00 1,000.00 1,500.00 2,000.00 2,500.002000021OthersHydropowerThermal powerNuclear powerWind powerSolar powerSource:National Bureau of Statistics,Wind15.16 25.84 42.43 60.45 79.84 104.72 133.97 175.09

291、216.03 251.87 6.72 17.75 28.39 43.54 77.79 130.80 175.02 204.57 253.42 306.40 8.14 11.76 15.98 21.68 32.96 41.36 49.81 59.07 73.81 93.71 71.73 81.88 88.82 97.54 104.65 113.33 124.22 145.96 167.02 191.10 -100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00 900.00200018201920

292、202021Other regionsChinaUSAEuropeSource:National Bureau of Statistics,Wind38Annual auto sales in China(Unit:per million)Moreover,a green lifestyle is taking shape in China,and low-carbon travel is becoming more convenient.The green public transport service system has seen continuous improvement.In 2

293、021,the operational length of urban rail transit was about 8,736 km,an increase of about 3.2 times compared with the end of 2012.The proportion of new energy city buses exceeded 66%and the number of new energy vehicles reached 7.84 mn.The sales of new energy vehicles reached 3.52 mn in 2021,making C

294、hina the worlds largest market(both production and sales)for new energy vehicles.In 2022,new energy vehicles accounted for one-fifth of total car sales in China,and the annual sales of new energy vehicles is expected to increase by 5.5 mn units this year.To conclude,as an important meeting held ever

295、y five years,the economic impacts of the 20th National Congress of the Communist Party of China are bound to be significant and far-reaching.The report outlines the strategic direction of and addresses the vital issues to transforming China into a developed economy by 2035.It is indeed an arduous lo

296、ng journey.China will only be able to achieve its goals,by first overcoming many obstacles and challenges ahead in key areas such as,unbalanced development,bottlenecks in promoting high-quality development,sustainability for innovation of science and technology,reliability and security of food,energ

297、y,industrial and supply chains,income distribution gap,ecological and environmental protection.Other difficulties include employment,education,medical services,childcare,elderly care,and housing.However,its been only slightly more than 40 years since China has pursued market economy,and integrate it

298、self with the global economy.The extraordinary achievements China has made in the past four decades have underscored tremendous progress for its 1.4 billion people.On the foundation of its past success there is no reason not to believe that China will do better in the future.0.01 0.02 0.07 0.33 0.51

299、 0.78 1.26 1.21 1.37 3.52 19.31 21.98 23.49 24.60 28.03 28.88 28.08 25.77 25.31 26.28 -5.00 10.00 15.00 20.00 25.00 30.00 35.002000021New energy vehicleTotal number of vehiclesSource:National Bureau of Statistics,WindAuthorG.Bin ZhaoSenior Economist PwC China+86(21)2

300、323 This content is for general information purposes only,and should not be used as a substitute for consultation with professional advisors.2022 PwC.All rights reserved.PwC refers to the PwC network and/or one or more of its member firms,each of which is a separate legal entity.Please see for further Special thanks to the Thought Leadership and Research teams for their contributions to the report.