China Economic Quarterly Q1 2017

What to expect from Made in China 2025 and China's first Belt and Road Forum

The China Economic Quarterly is a market outlook prepared on a quarterly basis by PwC to share the latest economic and policy updates. In this Q1 2017 update, the overview of China's macroeconomic trends are followed by insights into the new economic zone Xiong'an New Area, the "Made in China 2025" initiative and the Belt and Road Forum for International Cooperation to be held in Beijing on 14 and 15 May 2017.

Major economic indicators

  • The primary, secondary and tertiary (services) industries all grew, with services reaching 56.6%, 17.8% higher than the secondary industry and contributing 61.7% to overall economic growth. 
  • In the first quarter of 2017, China maintained its expansionary monetary policy. The increments of Aggregate Financing to the Real Economy (AFRE) were RMB 6.93 trillion, which was RMB 226.8 billion more than the same period last year.
  • China's fiscal deficit reached RMB 155.1 billion, the highest level in 20 years. This is partly because of the faster-than-expected dispatch of fiscal expenditure at the beginning of the year and partly due to tax cuts and reduced fiscal revenues.

Policy update


  • In a bid to address severe traffic congestion and air pollution in Beijing, the Chinese government announced a historic plan on 1 April 2017 to create Xiong'an New Area, a new economic zone about 100 km southwest of Beijing, with an initial area of around 100 square km and eventually expanding to nearly three times the size of New York City. 
  • "Made in China 2025" is China's first ten-year plan for manufacturing expansion and upgrading and has attracted criticisms for being "problematic" with the potential to be used to "discriminate against foreign firms in favour of Chinese competitors".

Previous issues of China Economic Quarterly

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Elton Huang

China Central Markets Leader, Shanghai Office Leader Partner, Entrepreneurial and Private Business Co-Leader, PwC China

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