China's Economic Resilience Boosts Global Growth Confidence (Harmony) Economy | China | Resilience
The Chinese economy has enormous development resilience and potential, and the long-term positive fundamentals have not changed. China has the confidence, conditions, and ability to promote the continuous optimization of its economic structure, the continuous enhancement of growth momentum, and the continuous improvement of its development trend
"In recent days, more and more global financial institutions have increased their holdings or planned to increase their holdings of Chinese assets, demonstrating confidence in the world's second largest economy achieving recovery with solid support measures." A recent report by Brazil's "Forum" magazine fully affirmed China's intensive release of a series of new measures to stabilize the economy. Many international figures have also pointed out that with the support of macroeconomic policies, positive factors for the overall improvement of the Chinese economy continue to accumulate, and it is expected to further unleash its potential and continuously promote high-quality development.
In a complex and severe external environment, China's economic growth rate is significantly faster than that of major developed economies in the world, demonstrating valuable resilience. In the first half of this year, China's gross domestic product increased by 5.5% year-on-year, significantly faster than the economic growth rate of 3% for the entire year last year and also faster than the average annual growth rate of 4.5% over the past three years due to the pandemic. The International Monetary Fund released its latest World Economic Outlook report last month, predicting that China's economy will grow by 5.2% this year, ranking among the top among major economies. The series of targeted measures recently introduced by China, such as effectively optimizing the development environment for private enterprises, help to consolidate the momentum of economic growth and further enhance the international community's confidence in the high-quality development of the Chinese economy.
In the context of a generally sluggish global cross-border investment, foreign institutions are increasing their investment in China, actively laying out high-end industries and emerging fields, demonstrating the strong and lasting attractiveness of the Chinese market. According to the calculation of the State Administration of Foreign Exchange of China, the return on foreign investment in China has been 9.1% in the past five years, far higher than the data of about 3% in the United States and Europe. In the first half of this year, many developed countries maintained growth in investment in China, with France, the United Kingdom, and Germany increasing their investment in China by 173.3%, 135.3%, and 14.2%, respectively. The number of newly established foreign-funded enterprises in China increased by 35.7%. The 2023 mid year report released by the American Chamber of Commerce in South China this month shows that nearly 60% of American companies continue to have a positive outlook on the Chinese market, and about 30% of surveyed companies plan to expand their investment in China. The huge market opportunities brought about by the stabilization and recovery of the Chinese economy, the continuously optimized business environment, and a mature and complete supply chain system are highly favored by foreign investment. China will continue to become a hot spot for foreign investment and business development.
After a smooth transition in China's epidemic prevention and control, the economic recovery is a process of wave like development and tortuous progress. The Chinese economy is in a critical period of stabilization, recovery, and industrial upgrading. There are also difficulties in development and problems in progress, but measures are being taken to actively solve them, and the results have already been or are being shown. Taking the overall price level of external concern as an example, although China's price level is periodically low, from indicators such as economic growth and money supply, the Chinese economy does not meet the standards of deflation. With the recovery of the Chinese economy, gradual expansion of market demand, and smooth economic circulation, the supply-demand relationship will gradually improve. The overall price level for the year is expected to fluctuate slightly and moderately within a reasonable range. Faced with difficulties and challenges, China's economy continues to recover and overall rebounds, remaining an important engine of global economic growth.
Some Western politicians and media are wearing colored glasses, deliberately magnifying the phased problems in China's post pandemic economic recovery process, vigorously hyping up the rhetoric of China's economic deflation, recovery setbacks, and policy weakness. These clich é s contradict facts and are inconsistent with the observations of many international organizations and individuals. As some media have pointed out, although Western media is keen on exaggerating the slowdown of China's economic growth, many international institutions still maintain an optimistic view of the Chinese market. China will continue to steadfastly promote high-quality development, and the trend of China's economic recovery will not be disturbed by noise.
The Chinese economy has enormous development resilience and potential, and the long-term positive fundamentals have not changed. China has the confidence, conditions, and ability to continuously improve its economic structure, enhance growth momentum, and maintain a positive development trend. It is accelerating the construction of a new development pattern, comprehensively promoting high-quality development, and contributing more positive energy to the world economic recovery.
