China will never stop moving forward

The grave challenges serve as the test of a nation’s resilience, resolve and vision. Confronted with the novel coronavirus, a pathogen that has never been seen in human history, China successfully contained the spread of the disease with painstaking efforts and huge sacrifices. Life in China is returning back to normal at an accelerated pace. The annual “two sessions” (meetings of China’s top legislatures that set the course and targets for China’s development) delayed by COVID19 for more than two months was successfully concluded last week. The world should have more confidence in China’s growth.

Confidence comes from the fundamentals of China’s economy. China boasts the largest and the most complete industrial system, as well as the biggest industrial output in the world. It also has a population of 1.4 billion people, a middle-income class of more than 400 m. and a talent pool of 170 m. with higher education or professional skills. All these factors contribute to making China the largest and the most vibrant market across the world.

In fact, the Chinese market has demonstrated huge growth potential despite the impacts of the pandemic. By the end of May, China’s PMI (Purchasing Managers’ Index) has been above the boom-and-bust line for three consecutive months, registering a continuous expansion of the manufacturing sector. The confidence of Chinese consumers is growing back. In April alone, 42 million cellphones were sold in China, which is 14.2% higher than the sales in the same period last year. On June 1, the one-day sale of Apple products on China’s online shopping platform exceeded $200 million, and 30,000 iPhones were sold out in just five minutes.

Confidence comes from the new driving force of China’s economic growth. China has adopted an innovation-driven strategy, and a new infrastructure initiative is unfolding across the country. China will put into use a host of new technologies including 5G, cloud computing, big data and Industrial Internet of Things (IIOT). They will serve as new engines driving China’s future growth.

In March, the value created by China’s hi-tech industry saw an increase of 8.9%. By the end of 2020, there will be more than 600,000 5G base stations all over China. More than half of the Chinese population and all the application scenarios will be connected by 5G signals. Over the next five years, the commercial value of China’s 5G industry will grow to more than $1.2 trillion.

Confidence also comes from China’s commitment to the opening-up policy. During the two sessions, President Xi Jinping said that protectionism is on the rise globally but we should stand on the right side of the history, commit ourselves to multilateralism, greater democracy in international relations and winwin cooperation.

China has enacted the Implementing Regulations of Foreign Investment Law, giving greater safeguards to foreign businesses. As the former vice-mayor of Sanya city in Hainan province, I was deeply encouraged at the news China has released the master plan for Hainan free trade port. A series of unprecedented opening-up policies was introduced, such as designating the entire Hainan island (35,000 sq.km.) as a special customs zone, giving zero tariffs to the trade of goods and allowing more liberalized investment in the island.

China’s unwavering commitment to further opening up its economy has received positive response from foreign businesses. The investigations of American Chamber of Commerce in China, US-China Business Council and Japan External Trade Organization all indicted that, since March, American and Japanese enterprises in China have seen their operation improving and their investment willingness increasing.

I also want to mention, in particular, the trade statistics between China and Israel. According to China’s Customs, in the first four months of 2020, China-Israel trade reached $4.87 billion, registering a year-on-year growth of 18%. This is a remarkable achievement against the backdrop of the COVID-19 and a sluggish global economy. The numbers demonstrate the resilience and the immense possibilities of China-Israel cooperation.

More and more people around the world have seen it clear a growing China means opportunity. Stepping up cooperation and friendly exchanges with China serves the interests of every country worldwide. The train of China has left the station. We welcome Israel and all countries in the world to have a seat on this train and work together for a better future for all.

The writer is Chargé d’Affaires ad interim of the Chinese Embassy in Israel