Australian analyst on China's economic performance

Added On July 21, 2019

James Laurenceson, acting director of the Australia-China Relations Institute at the University of Technology Sydney, made the remarks in an recent interview with CNC.
JAMES LAURENCESON, University of Technology Sydney
"I think it's a pretty solid result, under very challenging conditions, China itself is going through a transition from a manufacturing-led economy towards a higher wage services-led economy. That's not easy."
In his opinion, the service sector has been an important impetus for China’s economic growth, which also saw a remarkable increase in the first half of the year.
JAMES LAURENCESON, University of Technology Sydney
"I think the standout strength of China's economy for me right now is its services sector.  We saw in the first half of this year, it was growing at 7 percent, which is significantly above the average of the economy as a whole 6.3 percent of the first half. And don't forget the China's services sector these days different to 20 years ago, but these days is now worth 54 percent of its economy, whereas manufacturing is worth around 30 percent. So my point is, is that the largest part of China's economy is still growing very rapidly. And it also employs a lot of Chinese workers as well. So it's positive from an employment perspective. So the big challenge for my mind is the China's economic authorities to make sure that that services growth continues. As long as it does, I think China can avoid a hard landing."
Lawrenceson also highlighted China’s large domestic demand, which is a driving force of the economy.
JAMES LAURENCESON, University of Technology Sydney
"I think what it shows is that China is no longer dependent on the U.S. economy for trade. That's not to say the U.S. is unimportant. But the reality is only about 3 percent of value added in China ends up in exports to the United States. So China is increasingly a domestic driven economy. And also its export and its trade imports as well go to all over the world and come from all over the world as well. So that's why despite these tensions in the U.S. relationship, China's trade overall can continue to grow."
In the first six months of the year, China's total foreign trade volume reached 14.67 trillion yuan, or 2.13 trillion U.S. dollars, up 3.9 percent year on year, and 0.2 percentage points faster than the growth in the first quarter of the year.