“The international environment has been challenging and complex since the start of 2022. The global economy is in rough waters. Global growth is slowing down and inflation is rising unpredicted. “China’s economic growth has slowed in the first half of 2012, due to both internal and external challenges. This has attracted extensive attention,” writes Cao Zhongming, Ambassador of the People’s Republic of China, Kingdom of Belgium.
“The Chinese government has taken 33 policies to improve the stability of its overall economy. These measures cover six areas: finance, monetary investment, consumption and energy, food chain and people’s livelihood. The world closely follows China’s economic indicators for the first 8 months of the year.
The Chinese economy has shown remarkable resilience and vitality, and it has managed to rebound from the many challenges. China is still the largest major economy in the world.
The Chinese economy is showing major indicators that it has continued to recover and develop and is now at the crucial stage of its recovery.
Concerning production: Supply is generally stable and making good advances. Industrial production has seen a rebound due to the implementation of effective policies to stabilize supply and industrial chains, and to support production in key sector sectors. With policies to encourage consumption, the consumption potential of key sectors was gradually unlocked, and market sales continued to grow.
The total retail sales for consumer goods increased by 5.4% in August, which was 2.7 percentage points more than the previous month. The surveyed urban unemployment rate continues to fall despite continued efforts to support businesses, stabilize jobs, and increase employment. The August surveyed unemployment rate for urban areas was 5.3%, which is 0.1 percentage point lower than the previous month. Concerning price, efforts have been made to stabilize and ensure supply. CPI rose mildly.
CPI increased by 2.5 percent year-on-year in August. However, it fell by 0.2 percentage point compared to the previous month. Core CPI, which excludes the prices for food and energy, rose by 0.8 percent year on year. Trade has seen steady growth thanks to a host of policies that stabilize foreign trade. China’s total goods trade was 27.3 trillion Yuan in the first eight months of 2018, an increase of 10.1% year-on-year. Export was 15.48 trillion Yuan, an increase of 14.2%; import was 11.82 trillion Yuan, an increase of 5.2%).
Foreign investment: The Chinese market remains attractive to foreign investors, and the paid-in foreign investments continued to grow. Paid-in foreign investment grew by 16.4% in the first eight months to 892.74 billion Yuan.
The Chinese economy is showing signs of recovery and growth.
The factors that underpin the quality development of China’s economy and the fundamentals for long-term growth remain the same. The Chinese economy will continue to grow and recover, and will remain within a reasonable range of its previous policies and sustained efforts.
This conclusion can be drawn from several factors.
First, we will continue to work to coordinate the COVID response with economic and social development. This will lessen the negative effects of COVID-19 and ensure stability in industrial and supply chains, and a better balance between demand and supply.
Second, domestic demand will continue expanding and security and development will be better protected. Consumer spending will slowly increase as more aggressive investment stabilizing measures are implemented.
Third, reform and openness will continue to bring benefits. The reform of government functions, as well as the improvement of the business environment, will continue to be deepened and intensified.
These favorable conditions will help to bring out the best of China’s industrial system and encourage new growth drivers.
The policy orientation shows that China’s economy is deeply integrated in the global economy. China’s doors will continue to open.
China can’t be separated from the rest of the world when it comes to achieving development. The world needs China as well for its development.
China will remain committed to a new paradigm of development that includes both domestic and international circulations. It will also deepen high-standard open-up, uphold fair trade and free trade, foster a market-oriented and world-class business environment governed with a sound legal framework and protect foreign companies’ equal access to sectors opening up in accordance to the law. This is in an effort to achieve mutual benefits through fair competition.
China’s 20th National Congress of the Communist Party of China (2019) will create a blueprint for China’s future development over the next five years, or for a longer time period. This will provide a greater impetus for China’s growth.
A steady recovery and development in China’s economy, as well as faster progress in the construction of the new development paradigm, will help better tap the potential of this market and offer more opportunities to European countries.
Foreign investment continues to be a popular destination in China’s Chinese market. The growth in EU investment in China in the first eight months was 123.7 percent year-on-year, which indicates foreign investors’ confidence and trust in the Chinese market.
China will host the fifth China International Import Expo later this year. It will also host the first Global Digital Trade Expo and 132nd session China Import and Export Fair (Canton Fair). These events will allow Belgium and other European nations to gain more information about China and provide more opportunities for trade and economic cooperation with China.
What is the secret strength of the Chinese economy’s hidden strengths?
It is perseverance despite the difficulties and the immense potential that can be achieved through consistent efforts. China will continue to promote the Global Development Initiative. We welcome more cooperation and mutual openness with European countries in trade and investment. This will allow us to jointly contribute to the recovery of the global economy.
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