In August, the 15th IAAF World Championship was held in Beijing. I was especially impressed by the endurance and tenacity in long-distance running as well as the speed and passion in sprint. It made me ponder over the Chinese economy, whose rapid growth over the past 30 years is similar to sprinting, fast yet not sustainable. Now the Chinese economy is shifted to the long-distance running mode, a little slower, but healthier and more sustainable.
The 7% growth rate China achieved in the first half of the year is not at all easy. Given a US$ 10 trillion economy, 7% growth actually generates more increase in volume than the double-digit growth in the past, which deserves a "thumbs-up". China now pays more attention to the quality of its economy and no longer pursues quantity alone. While maintaining medium-to-high speed economic growth, it continues to optimize its structure. Just like a young man no longer grows as fast in height as a teenager, but the body is built stronger and mind enriched.
The vitality of the Chinese economy comes from the adjustment of economic structure. In the first half of this year, the economy expanded by 7%, the service sector accounts for almost half of GDP, consumption contributes 60% to growth, the growth of high-tech industries is over 10%, and energy intensity was down by 5.9%. These figures show that, despite of moderation of the speed, the Chinese economy is going for better quality and transformed from labour intensive to science and technology intensive, which lays the foundation for sustainable development.
The vitality of the Chinese economy comes from entrepreneurship and innovation. The Chinese government has adopted vigorous measures to promote mass entrepreneurship and innovation, streamline administration procedure, lower threshold and costs of doing business, and stimulate entrepreneurial passion. For the past one and a half year, over 10,000 new businesses have been registered on a daily basis in China. The stories of Chinese companies such as Xiaomi and Alibaba are popular and inspiring in India. Established five years ago with only a dozen people, Xiaomi has its market value soaring to $45 billion now. Alibaba, through innovation, has become a world-renowned corporate giant with $150 billion market value. Recently, another Chinese smart phone company, Smartisan's growth miracle has caught much attention. In 2012, a Chinese English teacher founded Smartisan with innovative ideas to develop smart phones and their operating system. Its market capitalization reached $400 million within three years, an increase of 51 times. In China, there are many such successful companies, which grow from scratch to strength and provide a steady stream of new momentum for the Chinese economy.
The vitality of the Chinese economy comes from the domestic consumption. Internet economy and sharing economy have made Chinese people's living more convenient while boosting consumption. For example, ordinary people can make an appointment online with chef on-site service and a chef comes to your house with a full set of kitchen utensils and ingredients. This way, you can enjoy the intimacy of home-dining and luxury of 5-star food without 5-star price, and the best part, you don't even need to do the shopping beforehand and do the dishes afterwards. The online trading platform run by Alibaba accounts for 12 percent of China's retail market, with up to 367 million users and 30 million express parcels delivered every day. The Chinese people always save for the rainy day, even in good days. So now despite the difficulties in the global economy, the Chinese people have plenty of money to spend, contributing to consumption increase.
China's development has brought and will continue to bring opportunities to the world. And we welcome other countries to board China's express train of development. The purpose of China raising the "belt and road" initiative and setting up the Asian Infrastructure Investment Bank is to share development opportunities with other countries. Last year, China's contribution to global economic growth was 25.8 percent, and in the first half of this year it increased to about 30 percent. China is now the largest trading partner of more than 120 countries and regions in the world.
China attaches importance to strengthening cooperation with neighboring countries, and India is among our largest development partners. Over the past year, President Xi Jinping and PM Modi met 5 times, including their mutual visits. The fast growing relationship between China and India has generated growing passion in each other and the all-round dynamism in our two societies to engage with each other. Chinese accumulative investment in India almost tripled to $2.7 billion to the end of this June. Businesses are eager to explore each other's market. The Chinese conglomerate Wanda Group is planning to invest $15 billion in the next 10 years in the construction of entertainment and industrial parks. China Railway wins the bid of Delhi-Mumbai high-speed rail project feasibility study out of 12 companies from 7 countries. India launched e-visa for Chinese tourists, a move that has and will significantly boost tourism and people-to-people exchanges. In August alone, Chinese tourists visiting India has doubled. With growing passion, China-Indian economic cooperation will usher in a new climax. China is known as the "world factory", and India the "world office". We can better align our development strategies, and work together to make Chinese phoenix and Indian peacock fly higher.