China injects valuable confidence, power into global economy

By He Yin

The arduous efforts made by China have gained the country significant strategic progress in pandemic containment, and the signs of economic recovery in the country are also inspiring, injecting valuable confidence and power into the haunted global economy.

These signs have also been noticed by foreign media as regions across the country restore production and people get their life and consumption back to normal. They reported that the transportation in major Chinese cities has returned to the same level of the last year, and the country has reopened thousands of tourist attractions. Major indexes in power, steel and auto industries are also approaching the normal level.

China is on a steady progress of economic recovery and development. By the end of last month, 99.1 percent of the country’s enterprises above designated level have resumed production, with 95.1 percent of their employees having returned. The purchasing managers’ index (PMI) of the manufacturing sector stood at 50.8 percent in April, staying above the 50-point mark indicating economic expansion for consecutive two months.

An investigation conducted by China’s Ministry of Commerce covering over 8,200 major foreign companies in the country found that 76.6 percent of them had restored 70 percent of their production as of April 28.

American magazine Foreign Policy said that China was getting back to business, and the recovery was inspiring. It is admirable that China successfully coped with the challenges posed by COVID-19 and pushed ahead with the resumption of production and work, which brings hope to the world in defeating the pandemic, said Singaporean Foreign Minister Vivian Balakrishnan.

The world has stronger confidence in China’s economic resilience after the country is tested by the pandemic. China’s gigantic market, complete infrastructure and supporting facilities, as well as growth potential are like a huge magnet for foreign capital and companies who said their confidence and determination to have long-term operation in China remain unchanged.

According to a 2020 report by American Chamber of Commerce in China (AmCham China), China still remains a key market for most of the American companies in the country. Another report by American Chamber of Commerce in South China also found that 75 percent of the respondents will not shift their investment plans in China despite the pandemic development.

Japanese newspaper Nihon Keizai Shimbun pointed out that more Japanese enterprises are staying in China, because they take the country not only as a processing base for exportation, but also a consumption market for their products. China’s position as a major supplier in the manufacturing sector will not be changed, said Morris Cohen, a professor at the Wharton School, University of Pennsylvania.

The pandemic also presented in a clearer manner the vitality and opportunities generated by the Chinese economy. COVID-19’s impacts on China’s economy are temporary and limited, and the fundamentals sustaining the country’s long-term growth stay unchanged. The factors supporting China’s high-quality development also remain the same.

Multiple new economic hotspots emerged during the pandemic, such as cloud working, cloud economy, online education, livestreaming commerce, smart delivery and the health sector, which indicated the strong endogenous power of China’s accelerating economic transformation and upgrading.

A German TV channel reported that “made-in-China” showcased its scientific advances in the pandemic, which came from the country’s very innovative and competitive entrepreneur environment. According to the 2020 American Business in China White Paper released by AmCham China on April 30, China’s domestic consumption and its increasingly enlarging middle-income group pose as the largest opportunity for American enterprises in China, while the country’s economic sustainability and market reform remain the second. China’s vitality released by innovation and reform is showing the world that the country is still a huge opportunity for development.

China is not only an important production base and consumption market of the world, but also a vital research center and industrial hub that has a very significant position on the global industrial and supply chains. The timely resumption of production of enterprises and the returning of employees are gradually showing progress, in terms of both production and consumption. It helps alleviate the economic burden on the world placed by the pandemic, and makes major contribution to safeguarding the stability of global industrial and supply chains.

Bill Gates, co-chair of the Bill & Melinda Gates Foundation said that China is actually the most reliable supplier of medical ingredients today.

China calls for stronger coordination of international macroeconomic policies, and advocates global cooperation to safeguard unimpeded trade and revitalize global economy. It keeps its promises to expand reform and opening-up, lower market access, continue improving business environment, and expand imports and outbound foreign investment, so as to promote common prosperity of the world with openness and innovation.

Human beings share a same future. It calls for common efforts, open cooperation and joint development for the world economy to conquer the challenges imposed by the COVID-19 pandemic. The 127th Canton Fair will be held online this June, for the first time in the history of this event, and the third China International Import Expo will also be held on schedule this November in Shanghai. It indicates China’s role as a stabilizer and driver of the world economy.

China, withstanding the test of the pandemic, is steadfastly continuing its journey on the path of high-quality development, which is appealing and will lead the world to common progress and prosperity.