The growth rate of commodity retail sales turned positive in July, and exports grew positively for 4 consecutive months
China's economic recovery is strong (international argument)
As the global new crown pneumonia epidemic continues to spread and the International Monetary Fund and the World Bank continue to lower their expectations for global economic growth this year, China has successively handed over a brilliant economic "transcript." Bloomberg said that China is expected to become the only major economy in the world that will maintain growth in 2020.
Recently, the National Bureau of Statistics of China released major macroeconomic data for July. Commodity retail sales increased by 0.2% year-on-year, and the growth rate changed from negative to positive for the first time during the year; imports and exports of goods increased by 6.5% year-on-year, of which exports grew positively for 4 consecutive months; the official manufacturing purchasing manager index (PMI) rose to a 4-month high Point... A series of data that boosted gas has attracted great attention from the global media.
"The fastest recovering country in the world"
"China is the country with the fastest economic recovery in the world. China's July economic data is a strong proof." Bloomberg reported that China effectively contained the new crown pneumonia epidemic and passed the period of global demand collapse. , And successfully maintained market activity. In July, China's industrial added value increased by 4.8% year-on-year, and the growth rate was the same as in June. With the reopening of factories and sales industries, China's exports soared by 10.4% in July.
Reuters noted that China's official manufacturing PMI, a leading macroeconomic indicator, rose to 51.1 in July, a four-month high. The report pointed out that the general recovery in production and the gradual recovery in demand drove China's official manufacturing PMI in July to exceed expectations to a 4-month high, further consolidating the moderate economic recovery. At the same time, the stability of demand growth needs to be continuously strengthened, and expanding domestic demand in the future will be a strategic basis.
The National Bureau of Statistics of China recently announced that in July, China’s Industrial Producer Price Index (PPI) fell 2.4% year-on-year, and the rate of decline narrowed 0.6% from the previous month; it rose 0.4% month-on-month. The relevant data aroused the attention of the British "Times" website. The report pointed out that China’s July PPI’s year-on-year decline narrowed, indicating that as the economy restarts, consumer demand for Chinese goods is recovering, and China’s economic activity is approaching the level before the new coronavirus pandemic.
In July, as industrial production rebounded and market demand rebounded, coupled with the continued rebound in international crude oil prices, China's oil and natural gas extraction industry prices rose by 12%, and coal extraction and automobile manufacturing prices both turned from falling to rising. In this regard, Julian Evans-Prichard, senior China economist at Capital International Macroeconomics Consulting in the United Kingdom, analyzed that in the next few months, further strengthening of fiscal stimulus will continue to support infrastructure spending and boost economic activity And the ex-factory prices of industrial producers have further recovered.
"China wakes up in the summer sun." On August 17, the Spanish "Le Monde" published a report on this topic, stating that China is the first large economy whose economic data has clearly recovered during the new crown virus pandemic.
"Renewal of the economy continues to exert force"
"The Chinese economy has demonstrated the ability to quickly and effectively overcome the crisis. What is the secret?" A recent report by Russian media raised this question. Over a period of time, foreign media and scholars have written articles to explain how China has introduced a number of macro-control policies and support policies in the context of the impact of the epidemic and shrinking external demand, and how to inject "strong momentum" into the economic recovery.
"The restorative growth of main indicators will lay a good foundation for China's economic development in the second half of the year and beyond." Tetsuro Honma, President of Panasonic China Northeast Asia, believes that China has quickly and effectively controlled the epidemic, expanded consumption, promoted employment, and development. The continued development of a series of economic revitalization measures such as new infrastructure is the key to economic recovery.
According to the Russian "Free Media" website, it is no accident that China's economy has achieved such results. It is the result of the combination of effective measures and system advantages. Due to the controllability of the Chinese economy and the correct measures taken by the government to stop the crisis and stimulate growth, China is able to calmly deal with risks and achieve its set goals.
Bloomberg pointed out that China has proposed a new development pattern in which domestic and international dual cycles are the mainstay, and the domestic and international dual cycles are mutually promoted. At the same time, foreign technology and capital are used for assistance. This is consistent with the investment-led economic policy strategy. In 2020, 3.75 trillion yuan of special local government bonds are being issued to support shortcomings, benefit the people's livelihood, promote consumption, and expand domestic demand. The report quoted the opinion of Hu Dongan, a senior economist at the Oxford Economics, and pointed out that China's fiscal policy support mainly focuses on employment and small and medium-sized enterprises, while investment is playing a greater role. This explains why the Chinese economy has been able to accelerate the pace of recovery at a relatively early stage while gaining a foothold.
Zamir Ahmed Awan, a professor at the National University of Science and Technology of Pakistan, believes that China has a huge domestic market, and its 1.4 billion population is one of its great advantages, and the purchasing power of the Chinese people has recovered strongly. China is rich in raw materials and has a large number of skilled workers. This is the true strength of China's industry.
"Long-term confidence in the Chinese market"
At present, China's main economic indicators are recovering, and market expectations are generally improving. Many foreign-funded enterprises have taken "reassurance." According to data recently released by the Ministry of Commerce of China, from January to July this year, China’s actual use of foreign capital was 535.65 billion yuan, a year-on-year increase of 0.5% (excluding banking, securities, and insurance), an increase of 1.8 percentage points from January to June. The increase in foreign investment absorption has turned from "negative" to "positive". From January to July, 18,838 foreign companies established in China.
According to the 2020 membership survey released by the US-China Business Council a few days ago, nearly 70% of interviewed US companies are optimistic about the business prospects of the Chinese market in the next five years. Based on the "long-term confidence" in the Chinese market, 87% of the interviewed US companies indicated that they do not plan to move their production lines out of China. U.S. media commented that China’s consumption and economic recovery helped some U.S. companies offset their severe domestic sales decline, and the Chinese market became a “refuge” for U.S. companies.
Many foreign media believe that as China's economic recovery accelerates, the interaction between China and the world will be further strengthened. China will make positive contributions to the stability of the global industrial chain and supply chain, and promote the world economy to emerge from the haze of the epidemic as soon as possible.
"From all aspects, China will continue to be an important driving force for the growth of the world economy." The Russian Free Media Network published a review article by Russian "Labor Daily" observer Mikhail Morozov, pointing out that China has improved the efficiency of commodity clearance and actively expanded imports. It also supports the construction of pilot free trade zones, free trade ports and free trade zones, demonstrating China’s determination to continue opening up.
According to a report on the website of the Italian "24 Hours Sun", the recent annual report on the status of foreign trade released by the Italian Foreign Trade Commission shows that the recovery of world trade in 2021 will be led by emerging Asian markets, with China second to none.
William Jones, an American expert on international issues and the Washington bureau chief of Global Strategic Information magazine, recently stated that creativity is the main driving force for the current world economic development. China focuses on high-quality development and essentially focuses on the source of wealth creation in the future. Not only will it benefit from it, but it will also benefit the rest of the world.
Our reporter Li Jiabao