Reform and opening up: China's development benefits the world
From 1978 to 2017, China's GDP grew 33.5 fold to $12.3 trillion, with an average annual growth rate of 9.5 percent.
In 1978, China adopted the policy of reform and opening up. From rural to urban areas, from pilot programs to wide promotion, and from economic system reform to comprehensively deepening reforms, the policy has not only promoted China to achieve a miracle of economic and social progress, but also injected powerful impetus into the global development.
From 1978 to 2017, China's GDP grew 33.5 fold to $12.3 trillion, with an average annual growth rate of 9.5 percent. The global share of China's GDP also rose to 15.3 from 1.8 percent in the same period.
China has been the world's second largest economy since 2010. During the past 4 decades, its total foreign trade grew 198 times, and foreign trade of services 147 times. It also attracted over $2 trillion of foreign investment.
The Port of Qingdao is the second foreign trade port of China that has an annual cargo handling capacity exceeding 100 million tons. Last year, the port handled a total of 510 million tons of goods, 26 times of that in 1978. It plays an important role in promoting an open economy.
The past 40 years have been a time for Chinese rural and urban residents to witness the fastest growth of their incomes, and a boom in welfare. China's per capita disposable income hit 25,974 yuan in 2017, growing 22.8 times from 1978 if accounting for inflation, with an average annual growth of 8.5 percent.
The past several decades have also witnessed a miracle of poverty reduction in human history - over 700 million Chinese people were lifted out of poverty.
The "Double Eleven" shopping spree has gradually turned from a plain promotion activity in 2009 into the world's largest shopping festival. A total of 180,000 brands from home and abroad were involved in this consumption feast this year. T-Mall (e-commerce platform of Alibaba) alone, has created a daily turnover of 213.5 billion.
All these facts prove that, as China's economy develops, the country's urban and rural residents are enjoying increasingly improved consumption power and livelihood.
China adopts an opening-up strategy that features win-win cooperation. It has taken full advantage of the world's opportunities, while creating opportunities for the world.
In recent years, China has kept a 30-percent-plus contribution to the world economic growth, serving as an important engine that drives global economic recovery. As China's "circle of friends" in trade expands larger and larger, the country's trading partner now adds up to over 230 from only around 40 four decades ago.
Since 2010, China has maintained itself as the world's second largest importer, the largest importer of e-commerce goods, and the biggest contributor to global growth of services.
Facing an imbalanced world economy, China proposed to jointly build the Belt and Road Initiative (BRI). In the past five years, the country has signed BRI cooperation agreements with more than 140 countries and international organizations, and a batch of major cooperative projects have been implemented. Now the Belt and Road countries and regions cover over 60 percent of the global population and more than 1/3 of world trade.
By June this year, merchandise trade between China and countries along the route has exceeded $5 trillion. China's total investment in economic and trade cooperation zones in these countries amounted to $28.9 billion, creating $2.01 billion of tax revenues and providing 244,000 local jobs.
China's opening up has efficiently promoted global peace, stability, development and prosperity. As a major power driving the South-South Cooperation, China is the largest investor in over 40 of the world's least developed countries. China's peacekeepers are a major force in the UN peacekeeping missions, and its doctors are also healing the wounded and saving the dying in Africa and the Middle East. More and more Chinese are going overseas to fulfill China's responsibility through concrete actions.
As certain countries are practicing trade protectionism at present, some people wonder if China will also follow up and build trade barriers. In this regard, Chinese President Xi Jinping has reiterated that China's door will never be closed. It will only open still wider. China will not stop its effort to pursue higher-quality inclusiveness. China will not stop its effort to pursue an open world economy. And China will not stop its effort to pursue a community with a shared future for mankind.
At the opening ceremony of the first China International Import Expo, the Chinese president proposed a series of major measures to open up further. When trade protectionism picks up, these measures are the most powerful counterstrikes and the strongest support to economic globalization.
Source: People's Daily Online
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Kazakhstan turns to high-value added manufacturing with building polyethylene plant it Atyrau region
Images | primeminister.kz
Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the heads of the world's largest oil and gas chemical companies – President of China Petrochemical Corporation (SINOPEC) Zhao Dong and Chairman of the Board of SIBUR LLC Mikhail Karisalovб primeminister.kz reports.
The key issue is the joint construction of the first integrated gas chemical complex for polyethylene production at a cost of about $7.7 billion and a capacity of 1.25 million tonnes per year, which will account for 1% of the world's total capacity.
A tripartite protocol was signed during the meeting, officially finalising SINOPEC's entry into the project. The ownership structure of the plant is as follows: KazMunayGas 40%, SINOPEC 30%, SIBUR 30%.
Head of the Government emphasised the importance of the project due to its focus on the production of high value-added products.
A gas separation complex (GSC) will be built at the Tengiz field to supply the "Polyethylene" project with feedstock (ethane). The capacity of the GSC is 9.1 billion m3 of dry gas processing per year, of which 1.6 million tonnes of ethane is expected to be produced.
Ethane will be sent through the main pipeline from Tengiz to the Karabatan site (territory of FEZ NINT, Atyrau region), where the polyethylene plant will operate.
It is planned to produce about 22 grades of polyethylene using American licence technologies of Chevron Phillips and Univation, 40% of which will be premium grade. A wide range of applications for both industrial and household purposes makes polyethylene the most popular polymer in the world.
Polyethylene is used in the fields of medicine, prosthetics, defence, food industry, construction, space industry and others. This polymer is used in the production of a wide range of goods: from plastic wear-resistant pipes, construction materials, medicines, syringes, prostheses to bulletproof vests, clothing for astronauts and car parts. Target markets include Kazakhstan, CIS countries, China, Turkey and European countries. At the same time, for domestic consumption, the realisation price will be lower than the import price.
The Head of State has identified deep processing of hydrocarbons as one of the key areas of development of the oil and gas sector. The priority for our economy is high conversion production producing products with a rapid increase in added value in the technological chain with an export orientation. The added value between the initial feedstock ethane and the third conversion product polyethylene increases 20 times, from $80-90 to $1600-1800 per tonne. The Polyethylene project will certainly give a serious impetus to the development of both the manufacturing industry and the country's economy as a whole. According to experts' calculations, the contribution to the country's GDP by 2030 from the implementation of the project is estimated at approximately 1.2%," Olzhas Bektenov said.
The construction of the plant is planned to be completed by 2029. During the construction period more than 8 thousand jobs will be created, during the operation period about 850 jobs will be created.
It was noted that the project is realised with the support of the Government. The plant will be built on the territory of a special economic zone with the provision of appropriate infrastructure and special tax regime. In this regard, Prime Minister emphasised the attention of the project participants to the need to maximise the use of local potential.
We on the part of the state provide comprehensive support in the implementation of projects important for the country's economy. At the same time, we expect you to increase the share of local content. For this purpose, it is necessary to determine the list of goods and equipment that will be mandatorily purchased from domestic producers. Special attention should be paid to training of Kazakhstani specialists and transfer of competences. It is important for us to maximise the attraction of local personnel, including for management positions in the project. We count on a similar approach in the implementation of other joint projects," Prime Minister emphasised.
Thus, in addition to the plant "Polyethylene" it is planned to build a gas separation complex and a trunk pipeline.
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Olzhas Bektenov and Head of the Sakha Republic Aysen Nikolayev discuss issues of trade and economic cooperation
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Prime Minister of the Republic of Kazakhstan Olzhas Bektenov met with the Head of the Republic of Sakha (Yakutia) Aysen Nikolayev, who arrived on a visit to Astana to participate in the opening ceremony of the Days of the Republic of Sakha in Kazakhstan, primeminister.kz reports.
The Republic of Sakha contributes to the development of Kazakhstan-Russia trade relations. The implementation of agreements reached at the level of the presidents of Kazakhstan and Russia on further expansion of bilateral trade and economic cooperation was reviewed.
Over the year, trade turnover between the regions of Kazakhstan and the Republic of Sakha has grown almost 2-fold, exceeding $160 million, with over 99% of exports of Kazakhstani goods. During the discussion a wide potential of mutual trade was noted and the parties' readiness to increase turnover in agricultural, industrial and IT spheres was outlined.
The parties confirmed their intention to intensify joint work on expanding the range of supplied goods and services, establishing direct contacts between business circles. It is expected that a new impetus to trade and economic relations will also be given by the launch of five major cross-border trade centres in Kazakhstan, including the Eurasia Cross-Border Trade Centre on the border with Russia.
Special attention was paid to the exchange of experience and technologies in the field of creative industries and digitalisation, as well as interaction between research institutes and educational institutions of Kazakhstan and the Republic of Sakha.
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ADB: Kazakhstan's economy to grow 3.8% in 2024, 5.3% in 2025
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According to a new Asian Development Bank (ADB) report, Kazakhstan's economic growth rate is projected to decline in 2024 due to a slowdown in the industrial sector caused by stagnant oil production but is expected to recover in 2025 with gains in mining and investment, reports Kazinform News Agency correspondent, citing the bank’s press service.
Economic prospects
ADB forecasts that GDP growth will slow in 2024 but recover in 2025. Growth is forecast to decline to 3.8% in 2024, with industry slowing due to stagnant oil production, before accelerating to 5.3% in 2025 as the expansion of the Tengiz oil field leads to higher oil production starting from the second quarter of 2025.
The prospects for Kazakhstan’s economic development look positive in the medium term," said ADB Country Operations Head in Kazakhstan Iskandar Gulamov.
However, the economy’s dependence on commodities makes such growth volatile-so structural reforms are key to bolstering the country’s economic resilience and sustainability," he added.
Despite a slowdown in 2024, economic growth is expected to be bolstered by consumer spending and investment demand. The anticipated growth in consumption is forecasted to moderate to approximately 4% in both 2024 and 2025 due to a slower increase in real disposable incomes.
Services growth is forecast to slow to 4.7% in 2024 after record growth in 2023 before rebounding to 4.9% in 2025, supported by trade, transport and hospitality, and trade facilitation between Europe and Asia. Industrial growth is forecast to slow to 3.5% in 2024, with smaller gains in mining, and accelerate to 5.7% in 2025 as oil production increases.
Investment growth in Kazakhstan is also projected to moderate, reaching 14.5% in 2024 and 9.0% in 2025, following the completion of significant infrastructure projects. Despite the support from state-sponsored housing construction initiatives and endeavors to attract foreign investment, these factors are expected to contribute to the overall moderation in investment growth.
Inflation rates
ADB forecasts that service prices are forecast to be the main source of inflation, rising 9.8% in 2024 and 8.1% in 2025 due to government-announced increases in utility prices.
The National Bank of Kazakhstan will gradually ease monetary policy and reduce the policy rate in line with the decline in inflation and inflationary expectations. However, rising utility prices and continued strong domestic demand will keep inflation above the National Bank's 5% target.
Caucasus and Central Asia economies
According to an ADB report, Caucasus and Central Asia economies will slow after the boost from re-exports and Russian migrant inflows in 2023. Growth in the subregion is forecast to fall to 4.3% in 2024, down from 5.3% in 2023 bouncing back to 5.0% in 2025.
In Uzbekistan, growth is forecast to moderate to 5.5% in 2024 and 5.6% in 2025 from 6% in 2023, as services, agriculture, and domestic demand cool on persistent inflation and slower growth in household income.
In the Kyrgyz Republic, growth is projected to moderate in 2024 and 2025 with smaller gains in construction and services. Inflation should decline under continued tight monetary policy.
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