Recently, People’s Daily (Overseas Edition) interviewed Prof. Yu Miaojie, deputy secretary of the Party Committee and president of Liaoning University, and reported it in the 10th page of the newspaper on December 20th. On the same day, the Chinese Government Website (www.gov.cn) reprinted it in the second article of its Top News. The original text and links are as follows:
China Injects New Driving Force into the Recovery of the World Economy
By Lin Zihan from People’s Daily
December 20, 2022
The outdoor scene of ABB Robot Super Factory in Pudong New Area, Shanghai
Photo by Fang Zhe, Xinhua News Agency
Farmers loading paddy into a truck in Tancheng County of Linyi, Shandong Province
Photo by Zhang Chunlei, Xinhua News Agency
At the end of the year, many international institutions issued economic prospects and made optimistic predictions on China’s economy. During the “1+6” roundtable forum between the Chinese government and the heads of six major international economic institutions held recently, the heads of economic institutions such as the World Bank and the International Monetary Fund expressed their pleasure at China’s opening up to the world, appreciated China’s optimization and adjustment of epidemic prevention policies, and believed that it would enhance the economic recovery momentum of China and the world.
Experts pointed out that with China’s continuous promotion of high-level opening up and the gradual implementation of China’s optimization and adjustment of epidemic prevention measures, China’s economic and social vitality will be further released and become an important engine to promote the stabilization and recovery of the world economy.
China’s economy continues to recover
Faced with multiple challenges such as the complicated and severe international environment and the rebound of domestic epidemic situation, China’s economy has withstood the pressure and maintained a recovery trend. On December 15, the National Bureau of Statistics of China released the latest national economic operation data, showing that from January to November, the added value of industrial enterprises above designated size increased by 3.8% year-on-year, the investment in fixed assets increased by 5.3%, the total import and export volume of goods increased by 8.6%, the basic living consumption and online retail sales increased steadily, and the national online retail sales increased by 4.2%. A spokesperson of the National Bureau of Statistics of China said that at present, China’s market prices are rising steadily, new kinetic energy continues to grow, people’s livelihood security is strong, and the overall economic and social situation is stable.
The gross domestic product (GDP) intuitively reflects the unusual course that China’s economy has gone through this year: it increased by 4.8% year-on-year in the first quarter, 0.4% in the second quarter and 3.9% in the third quarter. In the fourth quarter, with the effective implementation of various policy measures, the economy is expected to further stabilize and rise.
The Nikkei Asian Review recently reported that the global economy is facing many uncertain factors, but the foundation of China’s economic prosperity is still solid. Among them, the growing wealth of Chinese households is one of the key drivers of China’s economic growth, maintaining China’s stronger consumer spending, business confidence and capital investment.
“China has always focused on achieving growth of higher quality.” Bloomberg News recently published an article stating that in the first ten months of this year, China’s investment in high-tech manufacturing increased by more than 23%, much higher than the investment in other industries. In areas such as electrical and telecommunications equipment, investment has increased by nearly 30%. Revenue of companies that produce solar panel-related equipment, network base stations, factory automation equipment and lithium batteries is growing rapidly. According to the report, these industries have created more value for China’s economic growth, and investors should not underestimate China’s economic growth prospects.
Huo Jianguo, vice president of China Society for World Trade Organization Studies, said in an interview with People’s Daily that although China’s economic development has encountered difficulties and challenges this year, many bright spots and positive factors of economic growth deserve attention. In terms of cultivating new driving force, China has made continuous breakthroughs in the production and application of high-tech products, and the proportion of digital economy in the total economic output is close to 40%. In terms of the basic situation of foreign trade, the overall growth of foreign trade this year has exceeded expectations, and the development of export-oriented economy still has great potential. Among them, the export growth of new energy vehicles is far ahead and has become a new growth point for exports. E-commerce, new formats and new models have developed rapidly and become new ways of trade competition. The export ratio of private enterprises exceeded 60%. In the future, many factors will continue to play an active role, and it is expected that China’s economic recovery will be very strong next year.
Many authorities are optimistic about the growth prospects
Recently, China has continuously optimized epidemic prevention and control measures to further enhance market confidence in China’s economy.
According to Bloomberg News, Managing Director of IMF Georgieva said that the world economic growth may be further lowered, and that China’s adjustment of anti-epidemic policy is a good thing for its domestic economy and other parts of the world.
The Consumer News and Business Channel of the US quoted Noel Quinn, CEO of HSBC Group, as saying that with China’s continuous optimization of epidemic prevention policies, China’s economy is bound to usher in a strong rebound.
Yu Miaojie, deputy secretary of the Party Committee and president of Liaoning University and a distinguished professor of national talent projects, said in an interview with People’s Daily that with the gradual implementation of the optimization and adjustment measures for epidemic prevention and control in China, the synergy effect of the “troika” will continue to appear, and that China’s economic growth will continue to rise.
“All regions will actively implement the ‘new ten measures’ to optimize epidemic prevention, which will effectively smooth the logistics network, reduce transportation costs, stimulate enterprises to resume production and accelerate the formation of a unified national market. In addition, China has a complete comparative advantage in the industrial chain. Next year, China is expected to further consolidate its status as a “world factory”, and its export supply will continue to increase. At the same time, consumption will rebound visibly. ” said Yu Miaojie.
Recently, China has introduced a number of policies and measures to stabilize the economy and promote growth, attracting wide attention from the international community. Reuters reported that China has recently strengthened the coordination of various policies and pushed for the overall improvement of economic operation next year. The Swiss Financial and Economic News reported that according to the Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035) issued by China recently, China will achieve higher quality economic growth and better cope with external challenges in the future.
Yu Miaojie said that China’s new fiscal policy will actively exert its strength and effectively stimulate investment growth. We will continuously promote high-level opening-up measures, effectively encourage foreign investment and foreign tourists to visit China, and further promote China’s economic development.
“It is expected that China’s economy will maintain rapid growth next year and become the locomotive leading global economic growth.” Said Yu Miaojie.
“China has steadily expanded its institutional opening and accelerated the integration of rules and regulations with international standards, which has effectively boosted the confidence of the international community in China’s economic development.” said Huo Jianguo, “By creating a market-oriented, legal and international business environment, China is committed to maintaining the security and stability of the industrial chain and supply chain, and its attractiveness to foreign investment is constantly improving. At the same time, China has accelerated the construction of a unified national market, constantly broken down market barriers, accelerated the free circulation of goods and resources, and provided more convenience for enterprises to optimize resource allocation. With the in-depth development of reform and opening up and the continuous optimization of the business environment, we have reason to have an optimistic and positive attitude towards the development prospects of China’s economy.”
Adding bright colors to the world economy
Recently, the World Bank, the International Monetary Fund and other international institutions have repeatedly lowered their world economic growth forecasts and warned of the risk of the global economy falling into recession. According to the forecast of the International Monetary Fund, about one third of the world’s economies will shrink this year or next year. According to a report released by UNCTAD recently, the global real GDP growth rate will drop from 5.7% in 2021 to 3.3% in 2022.
In this context, China’s economic growth prospects are highly anticipated by the international community.
Reuters reported that China would become the bright spot of the global economy next year. According to the International Monetary Fund’s forecast, China will account for 30% of the global total growth next year. The Wall Street Journal reported that China’s economic growth will accelerate next year, which will help offset the global economic decline caused by other economies.
According to South Korea’s “newspim” and other media reports, the world’s expectation on China’s economic recovery in 2023 is greatly increasing. The recovery of China’s domestic consumption economy such as aviation, tourism, catering and accommodation will accelerate. After China further optimizes its epidemic prevention and control measures, some Korean industries such as semiconductors and steel will benefit from it.
“The stabilization of China’s economy brings hope to the global economy.” Huo Jianguo said that China’s import trade is the most important driving force for the growth of world import trade. With the acceleration of China’s economy and the recovery of domestic demand next year, the import of global energy and bulk commodities is bound to increase, and the import of rare precious metals used in chip production and lithium battery manufacturing will also show growth potential. At the same time, China accelerates the green transformation, promotes global energy conservation and emission reduction with practical actions, and there is a large demand for replacement of energy-saving and environmental protection equipment all over the country, which will become new growth points of import trade and stimulate global import trade.
“The Chinese economy is improving and injecting new driving force into the world’s economy.” said Yu Miaojie, “The recovery of China’s economy next year is not only expected to help the global economy avoid falling into an economic crisis. China will continue to expand its high-level opening up and will continue to make positive contributions to promoting the recovery of the world’s economy.
Link to the article:
http://paper.people.com.cn/rmrbhwb/html/2022-12/20/content_25955284.htm
