A resilient China has held up well against external stresses, and the economy continues to perform well. Rural and surburban areas have the greatest potential for economic growth.

China’s economic growth is expected to have slowed to just over 6% this year, and it is unlikely to accelerate anytime soon. In fact, economic commentators generally agree that China’s economic performance in 2019 – the worst in nearly 30 years – could be the best for at least a decade. What observers can’t seem to agree on is how worried China should be, or what policymakers can do to improve growth prospects.

New growth engines often evolve slower than the old growth drivers fade away, but they’re coming, even though the economy may linger at the low end for a while.

Its new ideas and approaches are broadly beneficial and have already involved many countries, even as the United States and others have tried to impede progress for selfish reasons.

In the here and now of climate change, it is easy to lose sight of important signs of progress. China, the world’s biggest emitter of greenhouse gases, is a case in point. By changing its economic model, shifting its sources of fuel, developing new transportation systems, and embracing eco-friendly urbanization, China’s sustainability strategy is an example of global leadership that the rest of the world should consider very carefully. In the rush to demonize China over trade, the West has missed this point altogether.

The elimination of tariffs, barriers and subsidies will not only promote fair market competition and end policy distortions but will also greatly enhance the competitive advantage of enterprises. China’s free trade zones should pay heed and embrace such reform.

China’s latest earnings reports show that new technologies are at the center of national growth despite its slowing economy, with new energy vehicles and 5G communications equipment sellers performing especially well. Even so, China’s economy continues to suffer from softer global demand and the ongoing trade war with the U.S.

After a disappointing performance in 2018, China’s economy appears to be stabilizing. In the first quarter of 2019, GDP growth, at 6.4% year-on-year, matched that of the previous quarter. But growth in industrial production exceeded expectations, expanding by 6.5% year on year (and by 8.5% in March). Even exports growth was positive, albeit weak, despite the ongoing trade war with the United States.

Citing the forecast by the United Nations’ Population Division, recently published Green Book of Population and Labor (2019) edited by Institute of Population and Labor Economics, the Chinese Academy of Social Sciences announced that China’s population will reach its peak in 2029 with 1.44 billion people.

China is about to slash the employer contribution rate to the social-security fund from 18-20% (with some variation across regions) to 16%, and cut the value-added tax (VAT) rate from 16% to 13% (for most enterprises). This is on top of a previously announced reduction in the corporate income tax charged on the first CN¥3 million ($447,000) of taxable income.