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China's Goal: Quadruple GDP by 2020
In the opening ceremony of the 2005 FORTUNE Global Forum, held in Beijing on May 16, Chinese President Hu Jintao broadly outlined the course his country is taking to reach a goal of quadrupling its 2000 Gross Domestic Product (GDP) by the year 2020. Science, technology and innovation figure prominently in the strategy.
President Hu discussed the recent historical rise in the nation's economic performance, saying, "In a short span of 26 years from 1978 to 2004, China's GDP increased from $147.3 billion to $1.6494 trillion with an average annual growth rate of 9.4 percent. Its foreign trade rose from $20.6 billion to $1.1548 trillion, averaging an annual growth rate of over 16 percent. China's foreign exchange reserve increased from 167m to 609.9bn." (Note: All amounts are in U.S. Dollars.)
Quadrupling China's GDP by 2020 would result in a per capita income level of only, $3,000 for its current 1.3 billion citizens. "We are deeply aware that China, for a considerably long period of time to come, will remain a developing country," President Hu said.
The sheer size of the Chinese market and availability of inexpensive labor have not gone unnoticed by the world's corporate leaders. President Hu states, "By the end of 2004, China had attracted a total of US$562.1 billion in foreign direct investment, approved the establishment in China of more than 500,000 foreign-funded enterprises and created a huge import market of some US$560 billion annually. At present, most countries and regions have had enterprises with investment in China, and over 400 firms out of the Fortune 500 have invested in China. The number of R&D centers set up by foreign investors in China has exceeded 700."
Can China reach its GDP goal before 2020? If it is any indication they will try, Yu Yongding, who heads the Chinese Academy of Social Sciences' Institute of World Economics and Politics, projects the nation will be able to maintain an annual growth rate exceeding 8 percent for the next decade without overheating.
President Hu's full speech is available at: http://china.org.cn/english/2005/May/128956.htm
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