Long-lasting advantages of China's commercial environment
- By Mei Xinyu
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E-mail China.org.cn, September 15, 2015
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A vendor from Kazakhstan sells chocolates and candies at a border trade marketplace in Jimunai County, Xinjiang Uygur Autonomous Region on April 23 [Photo/Xinhua] |
Looking at the basics of the Chinese economy at present, national income has increased greatly and will continue to do so. Certainly, the advantages of cheap labor are now a thing of the past, which is the inevitable result of China's economic and social development. However, while this advantage is disappearing, new advantages are emerging.
With the great increase of the national income, the domestic market is expanding in unprecedented ways. The economic scale is now the second largest in the world, and is expected to catch up and even surpass the United States.
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Big economic scale means better macro-economic stability, giving the government enlarged space in implementing macro-control and stabilizing economic growth.
In handling the impact of trans-boundary capital flows with an open market operation, it was evident as early as the 1960s that the central banks of some small Western European countries might use up all reserves to counter speculation in only a few hours, while those of big countries could feel more relaxed. This still remains the case today.
There is no need to talk about the 5-percent depreciation of the Chinese yuan against the U.S. dollar. The major reason was not due to any sluggishness of yuan, but rather because U.S. dollar was too strong. In August, 20 of the 24 most popular currencies in international markets depreciated, with the decline of the Russian rouble, Chilean peso and Brazilian real being more than10 percent.
The Indian rupee dropped to the lowest level in 17 years. And the South African rand and Brazilian real dropped to their lowest levels in 13 and 12 years respectively.
With China's influence in international trade being increasing, it has gained more power in convincing trade partners to treat "made in China" more fairly. Correspondingly, even investment in China's export-oriented manufacture faces less risks of trade protectionism.
Besides, some of the "advantages" enjoyed by other countries are actually temporary or completely offset by other factors.
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