China’s booming economy, engine of global growth

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China’s economic indicators for the first quarter of 2021 have been released. At an annualized rate, the economy grew 18.3% from January to April, facilitating a full economic recovery as the world grapples with COVID-19 disruption and consumption reasserts itself, registering highest tally since 1993.

In line with GDP figures, industrial production increased by 24.5% over last year, exports by 38.7%, imports by 29.2%, retail sales of consumer goods by 33 , 9% and capital investments of 25.6%, all positive indicators showing a healthy and resilient environment. economy, which is expected to end the year up around 8.4% overall.

The impressive resurgence of the Chinese economy is the product of a stable internal environment facilitated by a rapid and sustained containment of the COVID-19 pandemic, supply chain resilience and other corresponding rebounds from other major savings.

Regardless of geopolitical uncertainties, China remains an engine of global growth and therefore an integral part of the global recovery. This illustrates why it must continue to promote the country’s economic and development strategies, as well as lead by example on how to recover its economy in the midst of a crisis.

First, China’s recovery must be based on its absolutist and strident pandemic prevention and control strategy, which has protected national stability and prevented a massive resurgence of the virus. It certainly paid off.

A year ago, China suffered a temporary 6.8% economic blow after the first nationwide lockdown, but thanks to wholesale population testing, strict quarantine, and uncompromising transport restrictions, the epidemic was canceled and normal life was able to resume.

Since then, there have been small new pockets of new cases of the virus in some provinces, but by aggressively applying this strategy on a localized scale, China has completely prevented a “second wave” unlike other countries which have been assaulted again and again.

This created a climate of constant stability and gave China a head start on the rest of the world in reopening its economy. This, in turn, has allowed China-based supply chains to remain resilient and stable, providing the rest of the world with medical supplies, equipment and now vaccines.

These circumstances enabled China to weather a global recession by achieving 2.3% GDP growth in 2020, being the only major economy in the world to do so. Of course, the global economy is interdependent, and as a result, the recovery in some other countries subsequently drives China’s growth faster as demand for consumer goods drives up exports.

This has been especially true in countries like the United States where, despite geopolitical tensions, mutual trade has nonetheless increased. At the same time, an easing of normal economic circumstances in China itself has also produced a rebound in local consumer demand and hence an increase in imports, promoting international recovery.

A continuing cycle of global recovery has emerged, with China at the center adding to its momentum.

This puts the Chinese economy on an incredible pace for 2021. Of course, it is not without risks. Things are slightly positive right now, but there is no absolute guarantee that the COVID-19 pandemic will go away completely. While the scenarios for some countries appear positive, others continue to be rocked by the highest number of cases on record, plunging the recovery into uncertainty.

Likewise, constant new mutations in the virus are going to be an ongoing problem for emerging vaccines to follow. This will make the global exit from the pandemic not black and white, but uneven and sometimes inconsistent.

In this case, if the picture is optimistic, the fight is far from over. However, one thing is for sure, is that China’s recovery is simply a “how high?” – as opposed to any fear of falling backwards.

Beijing has emerged from the global COVID-19 crisis with immense efficiency and has done so without having to inject billions of dollars in stimulus into the economy like the EU, UK and United States. This shows the impressive resilience and certainty of its GDP in the future. Whatever the global situation, China will continue to be an engine of global growth and prosperity.
Source: China.org


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