China News Service, August 14th. National Bureau of Statistics spokesperson Fu Linghui said on the 14th that in recent years, China's economy has changed from relying on relatively large external demand in the past to relying mainly on domestic demand. The economic complementarity between China and the United States is relatively strong. In the world economy, China and the United States are the two largest economies. Cooperation will benefit both, and struggle will hurt both. We hope to maintain equal and mutually beneficial development.
On the 14th, the State Council Information Office held a press conference on the operation of the national economy in July 2020. At the meeting, a reporter asked: Judging from the data in July, industrial output is faster than demand, consumption, and investment. If this pattern cannot be changed, will it have some negative effects on future economic recovery, including prices? How do you evaluate the current risks of possible decoupling between China and the United States and will it have an impact on the economy?
Fu Linghui said that as far as the industry is concerned, steady growth was maintained in July, with the added value of industries above designated size increasing by 4.8% year-on-year. Since the beginning of this year, due to the impact of the new crown pneumonia epidemic, the industrial decline in the first quarter has been relatively large, and the overall recovery has been steadily in the second quarter. In terms of total volume, industrial production has turned from decline to growth; from a structural point of view, high-tech and equipment manufacturing industries have grown relatively fast, and new kinetic energy in the industry has maintained rapid growth, such as the 3D printing equipment and smart watches just mentioned. The growth trend of new products is still good.
Regarding the issue of the relationship between the supply side and the demand side, Fu Linghui said that in general, during the entire economic recovery process, the recovery growth of the supply side is still supported. China has promoted it through a series of resumption of work and production policies and corporate relief policies. Production resumed. At the same time, demand is also accelerating. The decline in total retail sales of consumer goods in July is narrowing, and the retail sales of goods has turned positive this month; the decline in investment from January to July has also been significantly narrowed, and the driving effect on production is gradually increasing.
Fu Linghui pointed out that from the perspective of annual growth, there are still many favorable conditions for maintaining stable growth. The first aspect is that the domestic epidemic situation has been basically controlled and stopped. Facing the impact of the new crown epidemic, the Party Central Committee and the State Council insisted on "people first and life first" and took resolute measures to stop the epidemic. Although there have been some sporadic cases in some areas recently, they are generally controllable. The economic recovery has laid a good foundation.
In the second aspect, a series of policies have been introduced this year in response to the impact of the epidemic, and the macro policy is increasing. For example, the scale of the fiscal deficit increased by 1 trillion yuan, the anti-epidemic special treasury bonds were issued 1 trillion yuan, the financial system gave a reasonable profit of 1.5 trillion yuan to various enterprises, and the annual new tax cuts and fees reached 2.5 trillion yuan. These measures will play an important role in supporting corporate relief and economic recovery in the second half of the year.
In the third aspect, the overall market demand is increasing. It can be seen that the new orders index in the manufacturing PMI has rebounded for three consecutive months.
In the fourth aspect, the company's resumption of work and production has achieved positive results, and the company's vitality is increasing. In June, the total profits of industrial enterprises above designated size increased by 11.5% year-on-year, and the manufacturing PMI remained above the threshold for five consecutive months, which is conducive to economic recovery. Judging from the second half of the year, the intensity of reform and opening up will increase. Through deepening the reform of decentralization, management and service, and accelerating the pace of economic development and opening up, we will inject new impetus into the economy.
Fu Linghui said that in recent years, especially since the international financial crisis, China's economy has changed from relying on relatively large external demand in the past to relying mainly on domestic demand. The economic complementarity between China and the United States is relatively strong. This change in Sino-US relations will certainly have an impact on China, and of course it will also have an impact on the United States and the world.
"Among the world economy, China and the United States are the two largest economies in the world. Cooperation will benefit both, and struggle will hurt both. We still hope to maintain equal and mutually beneficial development." Fu Linghui said.