China’s solid recovery benefits world
Despite the COVID-19 pandemic still ravaging many parts of the world and exacting devastating economic costs, China’s economy has bounced back. Trade and investment figures for the first half of the year reflect the Chinese economy’s robustness and resilience thanks mainly to the government’s stringent and effective prevention and control measures and the extensive policy support it has extended to businesses.
The country’s foreign trade surged 27.1 percent year-on-year to 18.07 trillion yuan ($2.79 trillion) in the first six months, its best performance in history, according to the General Administration of Customs on Tuesday. It is notable that the growth marks a 22.8 percent rise even compared with the pre-epidemic level in 2019, indicating solid economic recovery and strong global demand for Chinese exports.
On the investment front, foreign capital continued to flow into the Chinese mainland, lured by its massive market and markedly improved investment environment, with foreign direct investment increasing 28.7 percent year-on-year to 607.84 billion yuan in the first half of the year. That volume also surpassed the 2019 figure — by 27.1 percent — the Ministry of Commerce said on Wednesday.
These achievements have not come easily, especially given that locally transmitted COVID-19 cases are still reported in different parts of the country from time to time. For example, activity at Yantian port in Shenzhen, Guangdong province, was reduced to 30 percent of its normal levels after a coronavirus infection was detected there in late May. Yet it returned to normal in late June thanks to an “emergency response plan” the world’s fourth-busiest port launched to cut processing time for paperwork and speed up transfers of ships to other ports, reflecting China’s significantly enhanced capacity to deal with emergencies.
China’s robust economic performance is a boon for the rest of the world, as the country — the only major economy to record positive growth last year — continues to contribute to global recovery and the anti-pandemic fight.
China has so far provided 500 million doses of COVID-19 vaccines and raw materials to more than 100 countries and international organizations, equivalent to one-sixth of the global output of COVID-19 vaccines.
The fact that China’s exports have withstood so many coronavirus-induced woes as well as disruptions in the global flow of industrial components such as processor chips to maintain a strong growth momentum underscores the irreplaceable role that the country plays in the global supply chains. This should serve as a source of confidence in the country’s economic prospects for the second half of the year despite uncertainties in the global pandemic situation.