Xinhua News Agency, Beijing, April 19th. Summary: The overall stability and resilience are still there-overseas people positively comment on the “first quarter report” of China’s economy
Xinhua News Agency reporter
The economic data for the first quarter of this year released a few days ago shows that China’s economy is facing difficulties and has a generally stable start. Overseas observers believe that against the backdrop of a series of new challenges facing the prospect of global recovery, China’s economic operation has remained generally stable, reflecting the resilience of fundamentals and the effectiveness of policy responses. China’s economy is still capable of achieving long-term healthy growth under new downward pressure. .
Global volatility risk superimposed on the stability of China’s economy is commendable
According to data released by the National Bureau of Statistics of China on the 18th, China’s economy grew by 4.8% year-on-year in the first quarter. This growth rate is higher than the general expectations of overseas media and economists, and the data in many sub-sectors also show the “stability” of China’s economy under the disturbance of multiple risks.
Under the pressure of global inflation, Chinese prices continued to remain relatively stable. Data show that in the first quarter, the national consumer price index (CPI) rose by 1.1% over the same period of the previous year.
The Wall Street Journal reported that due to the surge in global commodity prices and the impact of the epidemic, China’s price level rose in March, but overall inflation was far more moderate than that of major developed economies such as the United States and the European Union.
The foreign trade import and export started smoothly. According to data from the General Administration of Customs, the total value of China’s import and export of goods in the first quarter increased by 10.7% year-on-year, which was the seventh consecutive quarter of positive year-on-year growth.
Zheng Xiaoling, president of the Canadian Council for the Promotion of International Trade, believes that China’s actual use of foreign capital in the first quarter increased by 25.6% year-on-year, indicating that this area has always been a hot spot for attracting foreign investment.
Wang Yi, chief China economist at Credit Suisse, said that China’s performance in fixed asset investment and industrial production was significantly higher than market expectations, which in turn made the economic growth in the first quarter also higher than market consensus. Wang is relatively optimistic about China’s economic growth this year, and believes that China has sufficient policy space to stabilize growth.
Liang Guoyong, a senior economist at the United Nations Conference on Trade and Development, believes that this year, risks such as regional conflicts, epidemics, inflation, and supply disturbances are superimposed, which will interfere with the world economic recovery process, and may even lead to economic recession in some countries. It is not easy for China’s economy to achieve this growth rate.
Cai Congmiao, honorary president of the Philippine Chamber of Commerce and Industry, said that despite global challenges such as the epidemic and geopolitics, China’s economy has maintained strong resilience and growth momentum for a long time, and China has the ability and wisdom to overcome difficulties in development.
The challenge of world imbalances intensifies, China’s policy efforts take into account the long-term
The stability of the economy lies in the fact that the fundamentals remain resilient and the macro policy response is effective. International observers have noticed that some developed economies have recently shifted from “big water release” to “drastic withdrawal” of monetary policy. The sharp adjustment in their policy response not only exacerbates their own economic chaos, but also brings global risks such as rising debt and development imbalances. In contrast, China’s macro policy should take into account both the current and the long-term, and provide strong support for the healthy development of its own and the world economy.
When the U.S. over-spreads currency to push up inflation, China keeps its exchange rate stable to protect small and medium-sized enterprises, said Haili Turk, an economics professor at the Illinois Institute of Technology in the United States. He believes that the priority of long-term structural growth over short-term interests is an important feature of China’s economic governance. China is transitioning from low-end manufacturing to high-end manufacturing, and its growing domestic consumption figures prominently in the country’s long-term economic growth plan.
Liang Guoyong said that since the outbreak of the epidemic, China’s macroeconomic policies have remained stable as a whole, avoiding “flooding” of monetary policy and excessive investment in fiscal policy, and retaining sufficient policy tools to meet future challenges.
On the 10th of this month, the “Opinions of the Central Committee of the Communist Party of China and the State Council on Accelerating the Construction of a Large National Market” was released, releasing a positive signal of continuing to deepen reform and opening up and promoting high-quality development; on the 15th, the People’s Bank of China announced a reduction in the deposit reserve ratio of financial institutions. Keep liquidity reasonably adequate.
Fu Qiang, an associate professor at the National University of Singapore Business School, believes that the construction of a national unified market is of great significance to the future growth of China’s economy and will help to achieve an effective allocation of resources with the market as the main body.
Helmi, Secretary General of Egypt-China Chamber of Commerce, believes that despite facing many challenges, China has vigorously promoted economic development through various measures, which reflects the strong leadership and sound strategic planning of the Chinese government.
Global development concerns add to China’s healthy growth prospects
Since the beginning of this year, the World Bank and the International Monetary Fund (IMF) have respectively lowered their forecasts for economic growth in most economies, regions and even the world. In the context of unexpected factors exceeding expectations and new downward pressures further increasing, can China’s economy achieve healthy growth? Many multinational companies and experts have given affirmative answers.
Zipse, chairman of BMW Group, said that he is very optimistic about the medium and long-term prospects of the Chinese market, and is encouraged by China’s commitment to further opening up the market and its efforts to promote green development and innovation. BMW will continue to invest in China and expand its presence in China. This year, it will launch two new factories in Shenyang and Zhangjiagang.
In the past three years, the export volume of New Zealand’s pillar industry dairy industry to China has increased year by year. The country’s dairy giant Fonterra said that in 2021, the Chinese market demand will drive a substantial increase in the group’s profits, and the company is firmly optimistic about the Chinese market demand. In the next step, the company hopes to further develop the Chinese market by taking advantage of the “Dongfeng” of the “Regional Comprehensive Economic Partnership” (RCEP) and the upgrading of the Singapore-China Free Trade Agreement.
Gu Qingyang, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said that China’s economy faces triple pressures of shrinking demand, supply shocks and weakening expectations, but it still has growth potential and competitiveness. China’s economy will still perform well this year after the macroeconomic policies. (Participating reporters: Chen Binjie, Xu Jing, Bian Zhuodan, Li Xiaoyu, Cai Shuya, Ni Ruijie, Zhu Sheng, Guo Lei, Yao Bing, Bai Lin, Kang Yi, Liu Kai, Yan Jie, Wang Lili, Lin Wei, Wang Feng)