Economy

China, a developing nation with growing pains

(Xinhua)
Updated: 2010-10-05 14:03

BEIJING - Though 61 is a mature age for people, the new China, which celebrated the 61st anniversary of its founding on October 1, is still in its adolescence, developing rapidly and full of the vigor of a young man.

Also like a youth, the country has experienced growing pains over those contradictions between its self-perception and recognition by its peers.

China has been on track for rapid development during the three decades since its reform and opening-up in the late 1970s, as gross domestic product (GDP) jumped to more than 34 trillion yuan ($5.08 trillion) in 2009, from 364.52 billion yuan in 1978.

Even the global financial crisis failed to slow the country's developing momentum, with an annual growth rate of 9.1 percent last year, outshining its developed counterparts, such as the US and Japan.

Despite the impact from the economic downturn, China also replaced Germany as the world's third largest economy and largest exporter last year, and overtook the US to become the world's largest auto market.

What's more, in the second quarter of this year, China's GDP exceeded that of Japan for the first time.

Zhuang Jian, chief economist with the Asian Development Bank, praised the achievements China has accomplished during the past three decades, saying its strong growth has boosted the confidence of the Chinese people and encouraged them to work harder for a better future.

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As China's economic clout grows, so do suspicions, criticism and even intentional exaggerations. Different readings on China's development have caused confusion - is China still a developing nation or a developed one?

The Chinese government has reiterated its status as a developing nation, while some insisted that China could no longer be called an emerging economy, and thus held China accountable for more responsibilities in its trade surplus, exchange rate, emission reductions and energy consumption. There is also fear that the emerging China would be a threat to other nations.

Premier Wen Jiabao said in September at the UN General Assembly that China was still in the  "primary stage of socialism" and remains a developing country.

"These are our basic national conditions. This is the real China," he said.

Wen stressed this point with data showing that, although China's GDP ranks it as the world's third largest economy, per capita GDP is only one-tenth of those of advanced countries. China's further development is constrained by its shortage of resources, as well as energy and environmental problems, he added.