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The Chinese economy keeps sailing steadily, despite the rough waters




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"Since the beginning of 2022, the international environment has been complex and challenging. The world economy is sailing through rough waters: global growth is losing steam and the inflation increase has been unanticipated. In the first half of this year, given both domestic and external challenges, China’s economic growth slowed down, and its economic outlook has drawn extensive attention," writes Cao Zhongming (pictured), Ambassador of the People’s Republic of China to the Kingdom of Belgium.

"The Chinese government, with the confidence and capability to ensure stable overall economic performance, has adopted a package of 33 policy measures, covering the six areas of finance, monetary, investment and consumption, energy and food, industrial chain, and people’s livelihood. China recently released its economic indicators for the first eight months of this year, which is closely followed by the wider world.

Generally speaking, the Chinese economy has rebounded amid the challenges and shown great resilience and vitality. China remains the most vibrant major economy in the world.

Major indicators show that the Chinese economy has maintained the momentum of recovery and development and is at a crucial stage of recovery.

Regarding production, supply is on the whole stable and making good progress. Thanks to effective policies to stabilize industrial and supply chains and support production in key sectors, industrial production has rebounded. Regarding demand, with policies to stimulate consumption being implemented, consumption potential in key sectors has been gradually unlocked and market sales continued to expand.

In August, the total retail sales of consumer goods grew by 5.4 per cent year on year, 2.7 percentage points faster than that of the previous month. Regarding employment, with sustained efforts to help businesses, stabilize jobs and support employment, surveyed urban unemployment rate continued to go down. In August, the surveyed unemployment rate in urban areas was 5.3 per cent, 0.1 percentage points lower than the previous month. Regarding price, efforts to ensure supply and stabilize price has paid off and CPI grew mildly.

In August, CPI went up by 2.5 per cent year on year, falling by 0.2 percentage points compared with the previous month; Core CPI excluding the prices of food and energy went up by 0.8 per cent year on year, the same as the previous month. Regarding trade, the host of policies to stabilize foreign trade has helped to realize steady trade growth. In the first eight months, China’s total trade in goods was 27.3 trillion yuan, up by 10.1 per cent year on year. Specifically, export was 15.48 trillion yuan, up by 14.2 per cent; Import was 11.82 trillion yuan, up by 5.2 per cent.


Regarding foreign investment, the Chinese market remained attractive to foreign investors and paid-in foreign investment continued to grow. In the first eight months, paid-in investment reached 892.74 billion yuan, up by 16.4 per cent year on year

Economic trajectory shows that policies are falling into place and the Chinese economy will continue to recover and grow.

The fundamentals sustaining long-term growth and the factors underpinning the high-quality development of the Chinese economy remain unchanged. As the effects of the host of policies and sustained efforts will be felt more quickly, the Chinese economy will continue to recover and grow and stay within a proper range.

This conclusion is drawn based on several reasons.

First, efforts will continue to be made to effectively coordinate the COVID response and economic and social development. This will reduce the negative impact of COVID-19, ensure stable industrial and supply chains and strike a better balance between supply and demand.

Second, domestic demand will continue to expand and security and development better safeguarded. As more vigorous investment stabilizing policies will be introduced, consumer spending will gradually pick up.

Third, the benefit of reform and opening up will continue to be unlocked. The reform of government functions will be further deepened, the business environment improved, and the reform impetus strengthened.

All these conducive conditions will better bring out the strengths of China’s complete industrial system and foster new growth drivers.

Policy orientation shows that the Chinese economy has deeply integrated into the world economy and China’s door will only open wider.

China cannot be separated from the world in achieving development, and the world also needs China for development.

China will continue to be committed to a new development paradigm featuring both domestic and international circulations, deepen high-standard opening-up, uphold free trade and fair trade, foster a market-oriented, world-class business environment governed by a sound legal framework, and protect foreign businesses’ equal access to opening-up sectors in accordance with the law, in a bid to realize mutual benefits through fair competition.

The upcoming 20th National Congress of the Communist Party of China will draw up China’s development blueprint for the next five years or even a longer period to come, thus proving a stronger impetus for China’s development.

The steady recovery and development of the Chinese economy and faster progress in building the new development paradigm will better tap the potential of the Chinese market, offering more opportunities for European countries.

The Chinese market remains a popular destination for foreign investment. In the first eight months, EU investment in China grew by 123.7 per cent year on year, indicating foreign investors’ confidence in the Chinese market.

Later this year, China will host the fifth China International Import Expo, the first Global Digital Trade Expo and the 132nd session of the China Import and Export Fair (Canton Fair). These events will help Belgium and other European countries to learn more about China and create more opportunities for economic and trade cooperation with China.

What is the hidden strength of the Chinese economy?

It is resilience despite the challenges and the great potential through steady efforts. China will continue to actively advance the Global Development Initiative. In this process, we welcome greater mutual openness and cooperation with European countries in trade, investment, industry and other sectors so as to contribute jointly to the recovery and development of the world economy."

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