Reasons enough to remain confident in the Chinese economy

According to data released by the National Bureau of Statistics on Friday, China’s gross domestic product (GDP) rose 2.5 percent year on year in the first half of this year, while GDP in the second quarter grew by 0. .4% YoY. -year. Under the impact of unexpected factors such as the Russian-Ukrainian conflict and new waves of COVID-19 epidemics, we have withstood the test, achieved positive growth and stabilized the economy. It has not been easy and the Chinese economy has once again shown great resilience.

Judging by the general trend in the first half of the year, it is not hard to see that the economy did quite well in January and February. In March and April it was badly affected, and in May and June it showed a trend of gradual stabilization and recovery. The overall economic trend showed a V-shaped rebound. Foreign trade, manufacturing and other areas recorded higher than expected growth, especially high-tech manufacturing, and the production of new energy vehicles and of solar batteries also increased significantly. At the same time, summer cereal production has seen a bumper harvest, which will help ensure the country’s food security and avert risks at a time when the shadow of a food crisis looms over the world. Everything indicates that the difficulties are temporary and that the strong endogenous dynamics of the Chinese economy will continue to play a role.

Besides the inherent resilience of the Chinese economy, the fact that it has been able to improve under extremely difficult conditions can also be attributed to the evident results of a series of policies aimed at stabilizing the economy pushed by the Central Committee of the Chinese Communist Party (CPC) and the State Council in a timely manner. In other words, it is a manifestation and proof of China’s economic governance capabilities. “Intrinsic resilience” and “governance capacity” are the two most critical factors for us to assess and judge the current situation and prospects of the Chinese economy, and they provide a solid foundation for our confidence and our continued optimism.

Optimism is by no means the same as avoiding problems, and blind optimism can never overcome obstacles. The road ahead for China will not be smooth: the global economic recovery is still fragile and weak, the risk of widespread stagflation is growing, domestic outbreaks are still sporadic, sluggish domestic demand and supply shocks have intertwined , structural contradictions and cyclical problems overlap , and market entities still face difficulties. The basis for a sustained economic recovery is not stable. All of these pose challenges to China’s future development. The injection of confidence and momentum into the overall recovery of the economy, in particular in stabilizing employment, stabilizing prices and activating the vitality of market players, still faces tough challenges. trials. In this regard, the Party and the government have a clear, deep and truth-oriented understanding, and have implemented active and careful countermeasures.

It is worth mentioning that in recent years, China has insisted on implementing a stable monetary policy, leaving enough policy space and tools in reserve to deal with new challenges and unexpected changes. According to data released Friday, the value added of high-tech manufacturing grew 9.6% year-on-year, 6.2 percentage points faster than all industries above the designated size. Further adjustment and optimization of the economic structure will certainly strengthen the resilience and vitality of the Chinese economy.

Recent incidents involving some rural banks in central China’s Henan Province and some unfinished residential projects that have inflamed public opinion have drawn the attention of relevant authorities, and it is believed that their risks will be effectively controlled. . These are long-term problems accumulated in the course of economic development, but have recently emerged in a concentrated manner, indicating that short-term difficulties have been superimposed on the period of economic transformation, and it is easy to expose these accumulated problems. . Various recent situations have further demonstrated that epidemic prevention, economic stabilization and development security are all essential.

The basic characteristics of the Chinese economy such as sufficient potential, great resilience and strong vitality have not changed. Compared to other major economies in the world, China’s “problems” are more short-term and temporary. At the same time, China’s status as a major manufacturing country is more stable, which strengthens our ability to withstand risks.

More importantly, under the strong leadership of the CPC Central Committee, focusing on big tasks has always been China’s major advantage. Now that we have identified the problem and have a strong determination and a clear path, we will be able to solve the difficulties. There will be ups and downs in the future, but as long as the whole of society works together, there will be no impassable hills or impassable obstacles.
Source: GlobalTimes

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