State push to revive industry shows results

The GDP growth rate figures for the four quarters of 2020 were -6.8 percent, 3.2 percent, 4.9 percent, and 6.5 percent respectively. Correspondingly, the sales growth rates of digging machines in the domestic market were -11.6 percent, 24.8 percent, 33.2 percent and 62.5 percent respectively.

It might help to have a “digger index” to understand China’s economy. As is the trend, sales of digging machines generally shoot up within a week of the Spring Festival holiday and peak one and half months later.

In 2020, during the novel coronavirus outbreak, the sales peaked 30 to 45 days later than usual. However, they soon picked up more fiercely than ever. Official data show that in 2020, sales of 25 branded digging machines reached 320,000, which is 39 percent higher than in 2019. In contrast, many developed countries saw a sharp decline in the sales of engineering tools.

The figures are a good indicator of China’s success in resuming production. For example, the transport sector saw 99 percent of the 625 key transport construction programs resuming by the end of April 2020; digging machines were digging sand and earth, and 5G base station construction work and agricultural land engineering too resumed.

Behind this resumption was the central leadership’s push to encourage economic recovery. Echoing the central leadership’s call, one city after another took steps to increase domestic consumption and propel the national economy forward through infrastructure construction. With 3.75 trillion yuan ($581.26 billion) special bonds issued, infrastructure construction will continue playing a key role in stabilizing investment and ensuring smooth running of the economy.

This is a good start for the 14th Five-Year Plan period (2021-25). Over 600,000 5G base stations were built in 2020, and 462,000 charging pillars were constructed for electric cars, providing a sound platform for digitalization of the economy. That will not only make daily life more easy, but also boost domestic demand and consumption. Let’s hope the economy goes from strength to strength this year.