On May 23, Consul General of the People’s Republic of China in Sydney H.E. Zhou Limin published a signed article titled “Steady Growth of the Chinese Economy Contributes to World Economic Recovery”. The full text is as follows:
Steady Growth of the Chinese Economy
Contributes to World Economic Recovery
Since the beginning of this year, the Chinese economy has kept the momentum of recovery and growth, and its overall performance has been stable, providing strong impetus for the stabilization and recovery of the world economy.
In the first quarter, China's GDP reached 27 trillion RMB yuan (US$4.24 trillion), up 4.8% year-on-year and 1.3% compared with the fourth quarter of 2021 at constant prices, according to data released by the National Bureau of Statistics of China. There are several highlights in China's current economic development:
First, the economic structure continued to improve. In the first quarter, the growth of final consumption expenditure contributed 69.4% to China’s economic growth, 18.7% higher than that of the same period last year, and higher than the contribution of total capital formation. Consumption is playing a more significant role as a ballast stone.
Second, further progress was made in green and smart transformation. In the first quarter, the added value of China's equipment manufacturing grew 8.1% year-on-year, while that of high-tech manufacturing grew 14.2%. The share of clean energy consumption, such as natural gas, hydro, nuclear and wind power, rose by 0.8% from the same period last year, and energy consumption per 10,000 RMB yuan of GDP decreased by 2.3%.
Third, people's wellbeing continued to improve. In the first quarter, per capita disposable income of the Chinese people nationwide increased by 5.1% in real terms, with the per capita disposable income of rural residents growing by 6.3%, continuing to outpace the 4.2% growth of urban residents.
China's economic prospects have been widely recognized by the international community. International Monetary Fund (IMF) Managing Director Kristina Georgieva said the Chinese government has sufficient policy space to cope with downward economic pressure and is capable of boosting the Chinese economy. According to recent reports by the German Chamber of Commerce in China and the American Chamber of Commerce in China, 71% of German-funded enterprises and over 60% of US-funded enterprises plan to increase investment in China.
China’s economic growth is achieved despite the complicated international situation and the sporadic outbreaks of COVID-19 in many parts of the country, and with maximum efforts to minimize the impact of COVID-19 on economic and social development. It is not easy.
In the past more than two years, China has effectively contained the spread of COVID-19, thanks to efforts in coordinating pandemic prevention and control with its economic and social development in a scientific way. Adhering to the overall strategy of "preventing imported cases from abroad, preventing a rebound at home", China takes the lead in resuming work and production globally, reassuring the world economy that has been shattered by the pandemic. According to an International Finance Forum (IFF) report, China will continue to be the largest contributor to world economic growth, with its contribution rated 26.3% in 2021.
There are concerns that China's "dynamic zero-COVID" policy could be a drag on economic growth. However, it should be pointed out that "dynamic zero-COVID" is not aimed at absolutely zero infection, but rather at bringing COVID-19 under control in a rapid and targeted manner, detecting and exterminating an outbreak at the shortest time possible, to prevent large-scale rebound and offer maximum protection to people's lives, health and normal order of work and life.
In face of the recent outbreaks, China has been speeding up the resumption of work and production on the basis of strict COVID-19 prevention and control, and continues to offer to the world medical equipment, production materials and life necessities. In the first quarter, China's import and export increased respectively by 7.5% and 13.4% year-on-year on the basis of the high rate last year, and the paid-in foreign investment increased by 25.6% year-on-year. China’s efforts have contributed to global pandemic prevention and control as well as work and production resumption, easing the pressure of global inflation and helping stabilize the global supply and manufacturing chain and promote sustained recovery.
As the complexity, severity and uncertainty of the world economy keeps rising, countries are faced with new challenges in maintaining stable growth, employment and prices.
Later this year, the Communist Party of China will hold its 20th National Congress to draw up the blueprint for China's future development. China will fully apply the new development philosophy, accelerate creating of a new development pattern, and strive to promote high-quality development. China will continue to adhere to the principles of openness, cooperation, unity and win-win, unswervingly expand opening-up in all respects, and turn the Chinese market into a market for the world, a market shared by all, and a market accessible to all.
Although some of China's economic indicators may fluctuate in the short term, the fundamentals of the Chinese economy, including its strong resilience, enormous potential, vast room for maneuver and long-term sustainability, remain unchanged. The sustained and stable development of the Chinese economy will continue to inject certainty and positive energy into world economic recovery.