Where does China’s economic rebound come from? – Dainik Savera Times

Foreign companies are generally optimistic about the Chinese market and believe that China’s economic development situation has been good. So where does this belief come from? The latest data on China’s national economic performance may provide the answer.

Data show that the added value of industries above the specified size increased by 7% year-on-year, among them, the added value of 39 industries achieved a growth rate of 95.1%. Fixed asset investment increased by 4.2% year-on-year. Data show that the long-term fundamental situation of China’s economy has not changed. This year it will continue to improve.

Let’s look at consumption first. Total retail sales of consumer goods from January to February this year increased by 5.5% year-on-year. China has launched large-scale equipment update and trade-in operations, which is estimated to create a market size of more than 50 trillion yuan. In addition, by 2023, the number of civilian cars in China will reach 336 million and the number of home appliances will exceed 3 billion. Upgrading these two areas will also create a huge market. At the same time, new consumption growth points such as domestic trendy products, smart home, entertainment and tourism are continuously emerging, providing new impetus to enhance domestic demand and opening up new space for foreign companies.

Economic reform is inseparable from innovation. Over the past two months, production of 3D printing equipment, charging piles and electronic components had increased by more than 40% year-on-year. Investment in high-tech industries increased by 9.4% year-on-year, reflecting the endogenous strength brought by the transformation of old and new kinetic energy.

The development of new quality productive forces has become a key word for China’s economy. The government work report clearly states that “promoting the construction of a modern industrial system and accelerating the development of new quality productive forces” is the top priority. In particular, the application of new production tools such as the Industrial Internet has promoted the optimization of manufacturing processes. By 2023, the scale of China’s industrial Internet core industries will exceed 13 trillion Chinese yuan and be comprehensively integrated into 49 major categories of the national economy. Chinese factories account for more than half of the latest list of “Lighthouse Factories” released by the World Economic Forum, representing the top intelligent manufacturing capabilities in the industrial sector.

Thanks to China’s innovation environment, a large number of foreign companies have invested in China. In January this year, there were 4,588 newly established foreign-invested enterprises, an increase of 74.4% year-on-year. Investments in China from Western developed countries have increased dramatically. Investments from France and Sweden have increased by 25 times and 11 times respectively. In the first two months of this year, China’s merchandise imports and exports increased by 8.7% year-on-year, with both imports and exports achieving positive growth. The rapid growth of China’s foreign trade has a positive role in promoting global trade and economic recovery.

Facts have proven that factors for improving China’s economic recovery are increasing. Although there are still many external factors of instability and uncertainty, China’s economy has the potential to achieve its annual targets and bring heat to the world economy. This is due to the accumulation of various favorable factors, the vitality of China’s huge market, and the enthusiasm of enterprises.

(Courtesy-China Media Group, Beijing)