This study illustrated the relevance of TFP with macro economy, and how TFP is not contributing Chinese economic development in recent one decade.

1. Situation Analysis
Breakdown of TFP Growth Rate (2001-2013)1
As shown above, the annual growth rate was 2.03% in average,
contributing only 22.25% to overall GDP during 2001-2013.
1
http://www.sic.gov.cn/News/455/6841.htm
State Information Centre, Sep 2016

2. Growth Trend for Total Factor Productivity(TFP), (1990-2014) 2
2
http://www.igef.cuhk.edu.hk/igef_media/working-
paper/IGEF/igef_working_paper_no_44%20sim.pdf

3. Breakdown for GDP Growth Rate （1990-2014）
2000-2008 witnessed continuous growth for TFP, with China joining WTO
and the capital driven model applied.
After 2011 however, both TFP and GDP started experiencing a downtrend,
with an even -0.2% growth for TFP in 2014.

4. Look Ahead
China has not published any official data for its annual TFP growth target.
However, since 2015, in the Central Economic Work Conference, the
concept of TFP growth was welcomed while deploying the requirement for
Demand-Supply side reform. One think tank under NDRC, the Academy of
Macroeconomic Research suggested 2% annual growth3
like Singapore set
in 1990s.
With the horn of ‘Growth in Quality’ by 19th
Congress, we may expect more
attention to TFP in future Chinese economic growth.
3
http://www.amr.gov.cn/ghbg/xsfx/201712/t20171208_69056.html