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Reasons to remain confident in Chinese economy amid pandemic

Xinhua2022-05-14 09:23

  Photo shows customers check out at a Sam's Club warehouse store at Beicai Town in Pudong New Area, east China's Shanghai, May 2, 2022. Large retail companies in Shanghai have started to reopen their supermarkets amid the recent COVID-19 resurgence. (Xinhua/Chen Jianli)

  BEIJING, May 13 (Xinhua) -- The surge of the Omicron variant of the coronavirus has exerted downward pressure on the Chinese economy. With an array of pro-growth policies to produce their intended effects, the risk is manageable and the sound fundamentals of the world's second-largest economy in the medium-to-long term will not change.

  To cope with the pandemic, China has applied a stringent dynamic zero-COVID policy. As the pandemic is still raging across the world and coronavirus continues to mutate, there is a great deal of uncertainty concerning how the situation will develop. The country has warned against any slackening in its efforts to control the virus.

  China's stance has been firm and clear -- unswervingly adhering to the dynamic zero-COVID policy while shoring up the economy and ensuring people's lives are affected as little as possible.

  Giving proper consideration to all these aspects is a difficult task. The earnest implementation of this policy is a major test for all regions and departments.

  A string of pro-growth policies is in the pipeline. China has already adopted multi-pronged fiscal measures in tax and fee cuts, public budget expenditure and bond issuance to stabilize the economy and ensure its people's wellbeing.

  Moreover, China has accelerated the establishment of a unified domestic market, comprehensively strengthened infrastructure construction, and deepened reform and opening-up across the board.

  The State Council and relevant departments are also rolling out detailed policies and measures to help industries, individually owned businesses and micro, small and medium-sized enterprises hit hard by the pandemic, and to stabilize market entities.

  Photo shows staff members work in a workshop at Songz Automobile Air Conditioning Co. Ltd in Shanghai, east China, April 29, 2022. A total of 251 automakers and auto parts and components enterprises were included in the first batch of 666 companies on the city's "white list" designed to support firms to resume production amid COVID-19 control. (Xinhua/Zhang Jiansong)

  Chinese authorities have ample space and diversified tools for fiscal, monetary and other policies. They have rich experience in responding to downward pressure on the economy and will further strengthen regulatory control, and will do so when the time is right.

  The Chinese economy is off to a steady start this year, with its GDP up 4.8 percent year on year in the first three months. Despite the downward pressure, the fundamentals of the Chinese economy, including its strong resilience, enormous potential, vast room for maneuver and long-term sustainability, remain unchanged. After pro-growth policies gradually produce their intended effects, China's economic performance will improve.

  By contributing approximately 30 percent to world economic growth, the Chinese economy is the largest engine driving global economic growth. The Chinese economy is at a critical moment in overcoming its difficulties. It is only by remaining confident and rising to the challenges that China can turn adverse situations into opportunities, embrace its bright prospects, continue to inject dynamism into the stability and recovery of the global economy and bring broader market opportunities for all countries.