BEIJING, May 31 (Xinhua) -- China has been on the defensive in its tariff fight with the United States, and such restraint is based on the knowledge and confidence of its own economic strength.
For three consecutive years, the contribution of foreign trade to the Chinese economy, measured by the ratio of net export increment to gross domestic product, has been negative. It is domestic demand that has propelled the country's economic expansion.
Last year, the contribution rate of domestic demand amounted to 108.6 percent, Ning Jizhe, head of the National Bureau of Statistics, told Xinhua in an interview.
Specifically, consumer spending contributed 76.2 percent as a major engine. The days when the Chinese economy mainly relying on the troika of export, consumption and investment for growth have been the past.
READY-MADE BUFFER
As the economy has been evolving into a consumption-led model, the Chinese have the confidence to weather the trade war headwind and remain cool and collected, Ning said.
Guo Shuqing, Party chief of the People's Bank of China and chairman of the China Banking and Insurance Regulatory Commission, said the negative effects on China's economy were limited and "completely controllable" since domestic consumption had become the strongest impetus for economic growth.
"Most of the Chinese exports to the U.S. are very suitable for domestic consumption," Guo said. "A large portion of them will be consumed in China's rapidly-expanding market, thanks to the country's ongoing consumption upgrading."
Boosted by improved business environment and enterprises' innovation, China keeps releasing its enormous market potential and propelling consumption upgrading, Ning said.
NON-STOP EFFORTS
In face of external uncertainties and challenges, the country is launching a string of measures to seek progress on the basis of ensuring stability in all fields.
To stabilize employment, the country will continue to encourage entrepreneurship, offer more support to emerging industries, and conduct vocational training for university graduates and those with employment difficulties, Ning said.
Meanwhile, Ning urged the acceleration of investment within the central government's budget to step up infrastructure construction, enhance public services, and promote the upgrading of manufacturing technologies and facilities.
Central budgetary investment is also encouraged in building new infrastructures in the telecommunication and Internet industries, while more measures will be unveiled to attract private investment in key fields.
Vowing to create a more open and friendly environment for foreign investors, China will introduce a shortened negative list for foreign investment by the end of June, and make moves to boost foreign investment in the central and western regions.
More efforts will be made to better serve significant foreign investment projects in new energy vehicle and new petrochemical industries, with investment scales up to more than 10 billion U.S. dollars, Ning said.
Ning stressed that although the temporary volatility in external environment could affect market expectations, in the long run, the positive prospect on the Chinese economy would boost business morale.
"Confidence in the Chinese market will definitely be growing given the stable, healthy and sustainable development of the economy," he said.
