China's post-pandemic economic recovery augurs well for the world
- By Sajjad Malik
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E-mail China.org.cn, September 8, 2020
China's manufacturing purchasing managers' index (PMI) for August showed a slight dip as compared to July, but still at the 50% level – clearly indicating the Chinese economy is definitely in the recovery mode.
The COVID-19 pandemic initially played havoc with the economy and China's GDP contracted by 6.8% year-on-year during the January-March period. An enormous 39.2% drop was observed in Hubei province, epicenter of the outbreak.
However, once the virus was brought under control, the economy responded with positive signs, showing its resilience and strength.
The improvement came faster than many experts expected. The recovery was testified by a music festival in Wuhan and an international beer festival in Qingdao. The two events succeeded to attract a lot of attention from the foreign media, keen to reporting the evolving post-pandemic scenario in China.
China has also reopened gyms, restaurants and movie theaters, another solid indicator of a change for the better. Simultaneously, passenger trips by train, plane as well as subway in China are increasing, which show that business activities are picking up. Another critical step towards normalization has been the reopening of schools.
All these measures set in motion a gathering momentum for commercial activities, vindicating the assertion that China's prevention and control measures against the virus had been highly effective.
China's incoming foreign direct investment (FDI) expanded by 15.8% year on year in July, according to data from the Ministry of Commerce (MOC), showing a positive sentiment of foreign investors. Profits of major industrial firms in July was about $85.56 billion, an increase by 19.6% year-on-year, according to the National Bureau of Statistics – another proof of China's strong economic comeback.
Apart from the domestic indicators, the International Monetary Fund (IMF) has also painted a positive picture of China through its forecast that China would be the only major economy expected to report growth in 2020. Though, the net growth would be low this year. It is expected to rebound in 2021 by registering more than 9% growth.
The resurgence of Chinese economy means a lot globally. As China is the world's second largest economy as well as its global manufacturing hub, its growth can propel commercial activities around the world.
While all the major economies are still trying to control COVID-19 and offset the deep economic recession in its wake, China has revived the confidence of ordinary people and the business community with its image as an emerging power.
The latest PMI data is one of the strongest symbols that China is defeating the coronavirus and rebooting its economy. It should be treated as good news by everyone.
Sajjad Malik is a columnist with China.org.cn. For more information please visit:
http://www.shenbo75.com/opinion/SajjadMalik.htm
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