China’s economy must remain resilient, say experts
BEIJING: First-quarter economic data released by China’s National Bureau of Statistics (NBS) earlier this week showed the East Asian country’s economy remaining stable despite downward pressures.
Foreign experts and business leaders say China’s economy has shown strong resilience in the face of global challenges and continues to show huge growth potential.
Liang Guoyong, senior economist at the United Nations Conference on Trade and Development, said “China’s economy is still relatively resilient and able to cope with challenges.” It is doing so, he said, as various risks — military conflict, the coronavirus pandemic, inflation and supply disruptions — threaten to weaken the recovery of the global economy.
Figures released by the SNB on Monday showed China’s gross domestic product grew 4.8% year-on-year in the first three months of 2022, beating market expectations and outpacing the 4% expansion. in the fourth quarter of last year.
In addition, China’s consumer price index remains very low as major developed countries face their most severe inflation in decades, Liang said, adding that it was not easy for China to register such a rate of growth while facing complex challenges at home and abroad.
For his part, Francis Chua, President Emeritus of the Philippine Chamber of Commerce and Industry, said China’s economy, despite the Covid-19 pandemic and other geopolitical challenges, will retain its strong resilience and momentum. of growth because she possessed the determination to overcome the turbulence.
Effective macroeconomic policies in response to global challenges have contributed to China’s steady economic growth, analysts said.
China’s economy prioritizes long-term structural growth over short-term, Khairy Tourk, an economics professor at the Stuart School of Business at the Illinois Institute of Technology in Chicago, told Xinhua recently.
As the United States flooded its market with liquidity, spurring the inflation that now haunts its economy, Tourk said China has kept interest rates constant to avoid hurting small and medium-sized businesses.
On the supply side, China has a plan to transform its economy from a low-end manufacturer to a high-end producer while bolstering domestic consumption as part of long-term growth plans on the supply side. request, he added.
This has benefits in that it raises people’s living standards and acts as a buffer against external shocks, the professor said.
Liang said that since the pandemic hit two years ago, China’s macroeconomic policies have remained generally stable, avoiding excessive stimulus policies from major developed economies.
“It means that the Chinese government has retained enough economic policy tools and macro-adjustment measures to ensure the smooth functioning of the economy,” he added.
Optimistic about the outlook
Meanwhile, Oliver Zipse, chairman of the board of BMW AG, said his group was quite optimistic about the medium to long-term outlook for the Chinese market.
“Looking forward, we are encouraged by China’s commitment to further open its market, as well as its efforts to promote green development and innovation,” he added.
BMW will continue to invest in China and expand its presence, the official said, noting that two new factories will open in Shenyang and Zhangjiagang this year.
Gu Qingyang, associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said China’s economy still has strong growth potential and remains competitive despite falling demand, shocks from supply and the weakening of expectations.
Macroeconomic policy tools should ensure China’s economy continues to perform well this year, he added.