China will continue to make strides, and contribute to global economy

Many executives of multinational companies have, in recent days, expressed that the Chinese market is irreplaceable and they are optimistic about its economic development prospects. The reason for such optimism lies in China’s official data on national economic performance in January and February. In the two months, the added value of industrial enterprises above designated size increased by 7 percent year-on-year. Among the 41 industrial categories, 39 achieved year-on-year growth in added value. Fixed asset investment also grew 4.2 percent yearon-year. In February, the index of enterprise production and operation activities, and service business activities is expected to have reached 54.2 percent and 58.1 percent, both in the prosperity range.

A series of data show that the long-term fundamentals of China’s economy have not changed, and signs of continued recovery have emerged.

In fact, such a “good momentum” can be found in various aspects. In the first two months of this year, China’s total retail sales of consumer goods increased by 5.5 percent year-on-year, reflecting further strengthening of its consumption momentum. The country has launched a new round of large-scale equipment renewal and replacement of old consumer goods with new, which is expected to bring a market with an annual scale of more than 5 trillion yuan ($694.50 billion).

At the same time, new consumption growth points such as domestic fashionable goods, smart home devices, entertainment and tourism have frequently emerged, bringing new momentum to expanding domestic demand and opening up new space for foreign companies.

At present, the country is making vigorous efforts to build a modern industrial system and accelerate the development of new quality productive forces. The application of new production tools such as the industrial internet has also facilitated the optimization of its manufacturing processes. It is the innovative atmosphere that attracts a large number of foreign companies to seek development in China. In January, 4,588 new foreign-invested enterprises were established in China, up 74.4 percent year-on-year, and inbound Western investment increased significantly, with investment from France and Sweden increasing by 25 and 11 times respectively. It is worth noting that in the first two months of this year, China’s import and export of goods increased by 8.7 percent year-on-year, both seeing positive growth and helping global trade and economic recovery.

It is borne out by facts that an increasing number of factors support the recovery of China’s economy. It is true, however, that many external destabilizing and uncertain factors still exist, and the foundation for China’s economic recovery needs to be strengthened. However, with the accumulation of various favorable factors, coupled with the vitality of its superlarge market and rising entrepreneurship, China’s economy will continue to make strides forward.