China’s economy shows strong resilience in 2021

Faced with the global downturn in 2021, the Chinese economy has shown development potential and resilient growth. Reform, opening up and innovation have continued to advance, people’s livelihoods have been strongly and effectively safeguarded, new progress has been made in building a new development pattern, and new achievements have been achieved. been obtained in a high-quality development.

First, economic growth has maintained a leading position in the world. The annual gross domestic product (GDP) was 114.367 billion yuan, an increase of 8.10 percent year on year, and the growth rate remained at the top of major economies. Tax revenues grew rapidly, foreign exchange reserves remained above $3.2 trillion for eight straight months, and the balance of payments was nearly balanced. At the end of December 2021, foreign exchange reserves stood at US$3.25 trillion.

Second, new urban jobs have continued to expand. Over the year as a whole, 12.69 million new jobs were created in towns and villages. The average urban unemployment rate observed over the whole year was 5.1%, down 0.5 percentage points from the previous year on average.

Third, the consumer price was within a reasonable range. Efforts to secure supply and stabilize prices continued to expand, lending of basic necessities to residents increased and consumer prices maintained a moderate rise, up 0.9% YoY annual.

Fourth, foreign trade and foreign investment have increased rapidly. Total merchandise imports and exports for the year were 39.1 trillion yuan, up 21.4 percent year-on-year. The export scale and international market share have reached a new high. The actual use of foreign capital for the year as a whole was 1.15 trillion yuan, a year-on-year increase of 14.9%.
Fifth, grain production achieved another bumper harvest. Total cereal production for the year was 682.85 million tons, an increase of 13.36 million tons or 2% over the previous year, and reached a new high. It has remained above 0.65 trillion kilograms for seven consecutive years, laying a good foundation for ensuring market supply and stabilizing prices.

Sixth, new industries and new forms of business have developed vigorously. The added value of high-tech manufacturing increased by 18.2% year-on-year. The new generation of information technology is accelerating the penetration and integration of new consumer areas such as online shopping, mobile payment, and online and offline integration. Foreign trade and foreign investment have increased significantly.

Seventh, the protection of people’s livelihoods was strong and effective. Residents’ income growth has been basically synchronized with economic growth, poverty reduction achievements have been consolidated, investment in people’s livelihoods has continued to increase, and investment in the education and health increased by 11.7% and 24.5% year-on-year. year respectively.

Eighth, the contribution to the global economy has been enhanced. According to the latest forecast from the International Monetary Fund, China’s GDP will account for about 18% of the global economy in 2021, and it will grow steadily year by year. In order to ensure the steady, healthy and balanced development of the Chinese economy, China has promoted the following relevant key works in 2021:

The foresight and effectiveness of macro policies have been strengthened on the basis of continuity and stability. Focusing on consolidating the foundations for economic recovery, macroeconomic policies have been implemented accurately and efficiently, and pre-adjustment and adjustment have been carried out in a timely manner to avoid a consecutive economic downturn. The necessary scale of tax expenditures has been maintained. Various monetary policy tools have been used flexibly. Reasonable and sufficient liquidity has been maintained. The policy of reducing costs, stabilizing jobs and developing employment was continued. In response to the significant contradictions in the economic functioning, appropriate measures were taken in a timely manner.

Demand from market entities has been directly helped to alleviate difficulties. Some tax or fee reduction policies have been improved and new structural tax reductions have been implemented while reducing the cost of land, network and road freight, etc. Principal and interest deferral and loan credit policies for small and micro enterprises continued to be implemented. The 300 billion yuan loan increased recently was sold. The total amount of market entities exceeded 150 million.

Reform and opening up have been deepened and the business environment has been improved. Reforms of the market system and public enterprises have been promoted. Reforms to streamline governance, devolve power and improve government services have been deepened. Pilot projects for innovation in the business environment have been launched. Approval procedures and processing times have been further reduced. Anti-monopoly and the prevention of disorderly expansion of capital have been developed. The high-level carbon peak neutralization design and working mechanism have been built. Regional development strategies have been thoroughly implemented. Pragmatic cooperation in the joint construction of the Belt and Road has been deepened and the implementation of RCEP has been promoted as planned.

Innovation has been strengthened and industrial and supply chains have been stabilized. The national strategic science and technology force has been strengthened. Research on key basic technologies has been accelerated. The R&D expenditure deduction rate has been increased in the manufacturing industry. The management of government scientific research expenditure has been improved. Digital transformation and upgrading of traditional industries have been promoted. The supply of key components has been increased.

People’s livelihoods have been secured and improved through development. The construction of ecological civilization has been continuously promoted. The basic pension for retirees continued to be increased. Compulsory education in rural areas has been strengthened. The goal of expanding enrollment by three million students was achieved in higher vocational education for three years. The disease prevention and control system has been improved. More outpatient expenses have been included in the scope of reimbursement. Affordable rental homes have been promoted in major cities. Emphasis was placed on production and supplying markets with agricultural products.

The development of the Chinese economy in 2021 fully proves that the fundamentals of the Chinese economy, characterized by strong resilience, enormous potential and long-term sustainability, remain unchanged. We are confident in the future development of the Chinese economy. China will further strengthen international economic cooperation, engage more in major global issues, and support high-quality development under the One Belt and One Road Initiative in 2022.
Source: Financial Express

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