China’s continued economic recovery injects confidence into world

By He Yin

While interpreting the latest World Economic Outlook update of the International Monetary Fund (IMF), international media generally delivered an encouraging message that China is the only major economy expected to achieve positive growth in 2020.

Against the backdrop of the COVID-19 pandemic and the severe recession of the world economy, China’s continued economic recovery has injected strong confidence into the global economic recovery.

China has withstood the “stress test” of the pandemic and set an example for other countries to coordinate pandemic prevention and control and economic and social development.

The economic data recently released by China also confirmed the IMF’s optimistic forecast. The added value of enterprises above designated size has risen for two consecutive months, and the total profits made by industrial enterprises and the index of services production began to increase. Besides, the growth of industrial electricity consumption accelerated, and power consumption of the service sector and rail-cargo volume was also on a rise.

Data also showed the preliminary results achieved from China’s work and production resumption and the recovery of the Chinese economy. The country’s manufacturing Purchasing Managers’ Index for June stood at 50.9 percent, keeping above the 50-point mark, which indicates economic expansion for four consecutive months. It indicated that China’s economic recovery continued to gain momentum with constantly enhanced stability of industrial chains, laying the foundation for a stable start in the second half of the year.

The growth of China’s postal and express delivery against headwinds is also a vivid testimony to the recovery of the Chinese market. According to statistics from the State Post Bureau, China’s express delivery volume achieved positive growth in February from a low level in January and surged over 40 percent year-on-year in May, the highest since February 2018.

As facts have indicated, China has withstood the test of the pandemic and taken targeted measures to promote a steady and stable economic recovery in coordinating pandemic prevention and control and economic and social development.

By orderly facilitating resumption of work and production, China has generated a strong impetus for the recovery of the global industrial and supply chains.

In contrast, the pandemic continues to bring shocks to the global economy. The World Bank predicted that the global economy would shrink 5.2 percent this year, the worst recession since World War II.

The Organization for Economic Cooperation and Development said COVID-19 has triggered the most severe recession in nearly a century. Although countries are gradually relaxing pandemic prevention and control measures, the global recovery still faces uncertainties.

Against this backdrop, China has always attempted to stabilize the overall performance of foreign trade, maintain the stability of the global industrial and supply chains and foster new growth drivers in developing new models of trade.

Companies in China not only quickly resumed their own work and production, but also helped their overseas suppliers in restoring production capability, driving the recovery of the global supply chain, said Consumer News and Business Channel in a recent article.

Adam Posen, president of the Peterson Institute for International Economics (PIIE), noted that the Chinese government’s timely and effective response measures after the COVID-19 outbreak, especially in public health, are crucial to its rapid economic recovery and its rank among the world’s top in terms of recovery.

China has added new imputes to the recovery and development of the world economy by unswervingly promoting opening-up.

The country set out plans on advancing opening-up in its government work report this year by stabilizing the overall performance of foreign trade, stepping up utilization of foreign capital, focusing on quality in the joint pursuit of the Belt and Road Initiative, and promoting liberalization and facilitation of trade and investment.

A master plan for the Hainan free trade port released recently focused on making the island province in south China a pacesetter and an important gateway in the country’s opening-up in the new era.

China’s 2020 version of the negative list on the market access of foreign investment in general and that for pilot free trade zones significantly shortened the negative list for foreign investment based on previous cuts for three consecutive years, sending a strong signal that the country will make opening-up a catalyst for reform and development amid the pandemic.

The 127th Canton Fair, which was moved online, gathered buyers from 217 countries and regions, with the number of sources of buyers reaching a record high in the event’s history.

The preparation work for the third China International Import Expo is going smoothly. For its exhibition of businesses, the signed exhibition area surpassed more than 90 percent of the planned area, and some companies even failed to get a booth.

Foreigners held that China has been committed to making its market environment opener and fairer, which is helpful for boosting investors’ confidence and promoting global economic recovery.

Despite the huge pressure in the first half of the year, the Chinese economy maintains stable and have a sound momentum for a long-term growth. China has strived to find new opportunities in the crisis and create new prospects in a changing world, delivering a performance that has encouraged the world.

While the world is facing more unstable and uncertain factors, China has the confidence and ability to continue to promote its high-quality economic development, and inject confidence and impetus into the world economy amid the ravaging COVID-19 pandemic.