Tumel Alhalofi, Director of International Education Cooperation Program, China Foreign Affairs University
Recently, CNN, the New York Times, Forbes and other media organizations, the Allen MacArthur Foundation, PricewaterhouseCoopers and other non-governmental economic organizations have been actively paying attention to the topic of China’s economic recovery.
A large number of analyses show that China has already Reinvigorate the economy and successfully get out of the pandemic crisis.
China became the world’s first major economy with a positive GDP growth trend, while the two largest economies in Europe and the United States are experiencing economic contraction.
The European economy is in a severe recession. Similar to the 2009 financial crisis, GDP is currently expected to shrink by 7.4%; the US GDP may shrink by 5.9%.
The Chinese economy contracted by 6.8% in the first quarter due to the spread of the corona virus; after the epidemic was brought under control, Chinese companies resumed work and production, and GDP grew by 3.2% in the second quarter. We have also seen that China’s domestic consumer confidence is gradually boosting.
The “Double Festival” Golden Week proves that China’s microeconomic policies have produced results. The data released after the Golden Week clearly shows that China’s economic recovery is progressing steadily.
According to statistics from the Ministry of Culture and Tourism of China, tourism revenue during the Golden Week totaled US$69.5 billion, and a total of 637 million domestic tourists were received.
The rapid recovery of China’s economy is mainly due to China’s strong economic policies. After 2000, China joined the World Trade Organization, established its position in the global economy, and actively participated in international trade.
Around 2010, China began to focus on developing e-commerce, building e-commerce infrastructure, and gradually realizing the digital economy transformation.
Since then, a series of economic achievements, such as Alibaba’s global e-commerce platform and Alipay electronic payment, have also confirmed the successful transformation of China’s economy.
Since 2015, China has provided funds to encourage the development of start-ups, leading the development of emerging industries such as artificial intelligence, robotics, and big data analysis in the 21st century.
At the same time, China has also cultivated a strong consumer market and established confidence in the government’s economic policies.
At present, China has successfully established a modern economy, has a complete set of financial tools and technical means, and has become a veritable economic power.
As in 2009, China has sufficient financial means to deal with the economic crisis, and the Chinese people are also full of confidence that the Chinese government can take appropriate fiscal measures to boost the economy.
Chinese policymakers are also actively thinking about economic development after the epidemic, and proposing a new dual-cycle development pattern.
As Chris Buckley said in an analysis article in The New York Times, “This means that China will expand domestic demand and promote innovation as the main engine to stimulate the economy, while foreign markets and investment are regarded as the second economy. Growth point.”
According to Bo Zhuang, chief China economist at TS Lombard, an independent research institution in the UK, the new development pattern of China’s dual cycle is a response to certain countries’ anti-globalization. The purpose is to restructure balance and avoid external risks.