China keeps injecting vitality into global recovery

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Robotic arms weld new energy vehicle frames in an intelligent workshop of Chinese automaker Dayun in Yuncheng, north China's Shanxi province, Dec. 8, 2022. (Photo by Yan Xin/People's Daily Online)
Robotic arms weld new energy vehicle frames in an intelligent workshop of Chinese automaker Dayun in Yuncheng, north China's Shanxi province, Dec. 8, 2022. (Photo by Yan Xin/People's Daily Online)

By Qiu Haifeng

An overall recovery and improvement is expected in China’s economic performance in the next year, said the annual Central Economic Work Conference recently held in Beijing.

At present, the global economy is discouraging. Commodity prices remain high and are prone to fluctuation. Food and energy security are posing serious problems. The world economy may face risks of stagnation and inflation.
The International Monetary Fund has downgraded its global growth projections for 2022 three times this year.

According to its latest forecast, the chance of global growth falling below 2 percent next year was increasing.
Under such a background, the international community is shifting its focus to the East, expecting the recovering Chinese economy to inject constant impetus into the rebound of global growth.

Bloomberg said in a recent article that the world economy will be as weak next year as it was in 2009 after the financial crisis, and the single biggest driver for the global economy next year will be China.

The Chinese economy enjoys strong resilience. Over the past three years, the Chinese economy has withstood pressures and demonstrated strong resilience and full strength. It became the only major economy in the world that reported positive growth in 2020, and its GDP exceeded 110 trillion yuan ($15.74 trillion) a year later. This year, the country stabilized its macroeconomy amid the impacts of unexpected factors.

The Chinese economy would still face challenges and risks in the future. However, it enjoys strong resilience, potential and vitality. The fundamentals sustaining China’s long-term growth remain unchanged. The Chinese economy is expected to recover even if there is likely to be an obvious slide globally next year, which will be greatly conducive to China’s own development and the global recovery.

The Chinese economy enjoys solid policy support. China’s economic growth has seen challenges this year. In particular, impacted by COVID-19 and other unexpected factors, it went through an obvious decline in the early second quarter.

Thanks to a series of stimulus packages issued by China, the decline was soon reversed.
In April, China cut the reserve requirement ratio for financial institutions by 0.25 percentage points, unleashing 530 billion yuan of long-term capital into the market.

In May, the country expanded value-added tax credit refund to seven sectors, including wholesale and retail sales.
Since August, it has extended the deferment of some taxes and fees for micro-, small- and medium-sized manufacturing enterprises and introduced phased tax reduction policies to support enterprises to galvanize more investment in enhancing innovation capability.

The Central Economic Work Conference, eying on the upcoming year, urged efforts to optimize epidemic response based on time and situation, intensify macro-control and prioritize the recovery and expansion of consumption. It charted the course for the economic work of 2023 and boosted confidence for the development of all sectors.

The Chinese economy enjoys the continuous release of dividends. No matter how the international situation has changed this year, China has never ceased its steps of opening up. It has constantly released development dividends that benefited more countries and enterprises.

The fifth China International Import Expo saw the inking of $73.52 billion worth of tentative deals, up 3.9 percent year on year. The 132nd session of the China Import and Export Fair displayed over 3.06 million exhibits, the highest in the event’s history. The 2022 China International Fair for Trade in Services achieved 1,300 deliverables and the second China International Consumer Products Expo was joined by more than 2,800 renowned brands.

These exhibitions, which were all held as scheduled, have become a window through which China shares its huge market with the rest of the world.

Apart from that, exhibitors attending these events have turned into investors. The foreign direct investment into the Chinese mainland in the first 11 months of the year exceeded the whole-year figure of 2021 that once set a historical high.

China, with better development, will surely benefit the rest of the world in the coming new year.

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