BEIJING, March 25, 2023 /PRNewswire/ — Over the past three years, China has overcome several waves of COVID-19 with a large vaccination campaign. This has enabled the country to maintain the lowest rate of severe disease and mortality in the world.
In response to the ever-evolving situation, China has optimized its response strategy to COVID-19 by coordinating epidemic prevention and control with economic and social development.
In early 2023 Chinese the economy is showing positive signs, with several developments pointing to its ability to drive global growth.
This is shown by the data of the National Bureau of Statistics (NBS). Chinese value-added industrial production, a key supply-side indicator, rose 2.4 percent year-on-year in the first two months of 2023.
On the demand side, key indicators for consumption, investment and foreign trade increased over the same period. Retail sales of consumer goods and investments in fixed assets increased by 3.5 and 5.5 percent, respectively.
Steady economic growth
As consumer confidence gradually returns and pro-consumer policies take effect, the NBS expects the recovery in consumption to continue.
To stimulate domestic consumption, the government introduced supportive policies across the country, including issuing shopping vouchers to the public and launching consumption promotion festivals.
China continues to emphasize high-quality development, including stimulating the real economy, promoting high-end manufacturing and accelerating the construction of a modern industrial system, the State Council said.
The country aims for stable economic growth and has set a gross domestic product (GDP) target of approximately 5 percent.
Despite the recovery in the first two months of this year, China still needs to boost consumer spending and strengthen the basis for sustained economic recovery, NBS spokesman Fu Linghui said during a press conference last Wednesday.
Starting from March 27National Bank China will reduce the required reserve ratio (RRR) for financial institutions (excluding those already applying the 5 percent ratio) by 0.25 percentage points. After the cuts, the weighted average RRR for lenders will fall to around 7.6 percent.
This move is designed to maintain a reasonably sufficient amount of liquidity to serve the real economy and provide financial support to stimulate domestic demand.
Steady growth amid difficulties
Chinese the economy has maintained steady growth amid the resurgence of COVID-19 over the past year.
According to NBS data, the country’s GDP reached the highest level in history 121 trillion yuan (approx $17.95 trillion) in 2022, after crossing the threshold of 100 trillion yuan in 2020 and 110 trillion yuan in 2021
Meanwhile, value-added industrial production rose 3.6 percent year-on-year. It is significant that the high-tech manufacturing and equipment manufacturing sectors showed significant growth momentum with production values increasing by 7.4 percent and 5.6 percent, respectively.
Despite numerous challenges in the past three years, China has maintained stability in its economy. It was one of the first countries in the world to resume operations and reopen for business in 2020 and was the only major economy to post positive growth that year.
“China is working to minimize the impact of the pandemic on its supply chains and operations,” said Prof. Liu Bin at the Chinese Institute for WTO Studies at the University of International Business and Economics in Beijing.
To stabilize economic growth, China has implemented several policies, including mobilizing funds for infrastructure investments, reducing utility costs for market entities, and providing assistance to companies severely affected by the pandemic to ease their financial burdens.
According to Liu, the rebound in the Chinese Economic growth is expected to be faster than on the international market, which is important for strengthening confidence in the recovery of the global economy.
Thanks Chinese a major role in global trade, its economic recovery could inject vitality into the global economy, Liu said.
This is shown by the data of the General Administration of Customs Chinese realized total turnover of goods 42.07 trillion yuan (approx $6.21 trillion) in 2022, for the sixth consecutive year in first place in the world.
In addition, this is also shown by official data China has been the world leader in exports for 14 consecutive years, occupying 14.7 percent of the global export market.
“In addition to the important role that China plays in global trade, its exports also contribute greatly to its GDP growth,” said Bai Rangrang, an associate professor of the Department of Applied Economics at Fudan University’s School of Management.
“It somewhat offset the gap in the decline in household spending and business investment last year,” he said, noting that an important factor is that China opened wide to the world.
analysis: Chinese economic resilience increases prospects for global recovery Chinese the economy is showing positive signs in early 2023, with several developments pointing to its ability to drive global growth. CGTN, China Global Television Network