China Sets its Eyes in Becoming a Upper Middle Income Country by 2020
The deputy director of the National accounts and Economic Growth Research Center said that China will rank among the upper middle income countries by the year 2020. By 2020 the country is expected to quadruple its 2000 per capita GDP. This target was set during the Communist Party’s 17th National Congress last October 2007.
If the country will be able to achieve its annual average per capita GDP growth of 4% and when its population grows slightly the country can achieve this target. If China’s long term annual average growth rate will drop two percentage points between 200 and 2011, it will still be at 8%. This shows China’s total GDP would be nearly six times its GDP figure that was recorded in 2000 or about 47% higher than the previous targets.
While China’s economic growth is impressive, they still need to work in able to achieve its goals that were set during the 15th National Congress in 1997, including the transformation of China into a democratic, modern and civilized socialist country using a three pronged approach namely in a variety of economic policy areas such as employment, growth, income allocation, managing inflation, lives of ordinary people, appropriate allocation of national resources and the international balance of payments. In social development they look in identifying issues such as education, culture, science, medical care, democracy, social security and the legal system. The final prong looks into sustainable development of environmental and human resources and population.
When the country achieves its GDP goal, China’s per capita GDP can edge above US$ 10,000 by 2020 ranking it among the upper middle income countries but just below high income countries that has a per capita income of US$ 30,000. In the 11th Five Year Economic Development Plan the nation’s GDP growth have become the predictive indicator if the economic development and will be reliant on activities of enterprises both private and state owned and in the next few years the less developed regions will likely register double digit economic growth through the support given by government policies.
China also needs to focus on four other aspects for greater economic development such as avoiding middle income trap through increased innovation, adjusting the country’s macro economics, improving technology and balancing domestic and foreign demand to increase economic stability.