Photo shows customers at a Sam’s Club warehouse store in Beicai Town, Pudong New Area, east China’s Shanghai, May 2, 2022. Major retail businesses in Shanghai started reopen their supermarkets amid the recent resurgence of COVID-19. (Xinhua/Chen Jianli)
BEIJING, May 13 (Xinhua) — The rise of the Omicron variant of the coronavirus has put downward pressure on China’s economy. With a range of pro-growth policies to deliver the desired effects, the risk is manageable and the solid fundamentals of the world’s second-largest economy over the medium to long term will not change.
To deal with the pandemic, China has implemented a strict zero-COVID dynamic policy. As the pandemic still rages across the world and the coronavirus continues to mutate, there is great uncertainty as to how the situation will evolve. The country has warned against any slack in its efforts to control the virus.
China’s position has been firm and clear, unwaveringly adhering to the aggressive zero COVID policy while strengthening the economy and ensuring that people’s lives are affected as little as possible.
Taking all these aspects into account is a difficult task. Serious implementation of this policy is a major test for all regions and departments.
A series of pro-growth policies are in preparation. China has already adopted multi-pronged fiscal measures in tax and fee cuts, public budget spending and bond issuance to stabilize the economy and ensure the well-being of its people.
In addition, China has accelerated the establishment of a unified domestic market, comprehensively strengthened infrastructure construction, and deepened reform and opening-up at all levels.
The State Council and relevant departments are also rolling out detailed policies and measures to help industries, individual enterprises, and micro, small, and medium-sized enterprises hit hard by the pandemic, and to stabilize market entities.
Photo shows staff members working at a workshop of Songz Automobile Air Conditioning Co. Ltd in Shanghai, east China, April 29, 2022. A total of 251 automakers and auto parts and components enterprises were included in the first batch of 666 companies in the city. “whitelist” designed to help companies resume production under the control of COVID-19. (Xinhua/Zhang Jiansong)
Chinese authorities have ample space and diversified tools for fiscal, monetary and other policies. They have a wealth of experience in responding to downward pressures on the economy and will further tighten regulatory control, and will do so when the time comes.
China’s economy is off to a steady start this year, with GDP up 4.8 percent year-on-year in the first three months. Despite the downward pressure, the fundamentals of the Chinese economy, including its strong resilience, huge potential, vast room for maneuver and long-term sustainability, remain unchanged. Once pro-growth policies gradually produce the desired effects, China’s economic performance will improve.
Contributing about 30% to global economic growth, the Chinese economy is the biggest driver of global economic growth. The Chinese economy is at a critical moment to overcome its difficulties. Only by remaining confident and meeting challenges can China turn adverse situations into opportunities, seize its promising prospects, continue to drive stability and recovery in the global economy, and provide more market opportunities. wide to all countries. ■