Why pessimists are wrong about Chinese economy

ECONOMIC MOMENTUM REMAINS STRONG

Although the Chinese economy has encountered several difficulties and challenges so far this year, it is still too early to think that the country's economic growth is slowing down.

As one of the first countries to resume work and production, China became the only major economy to register positive growth in 2020, with its GDP surpassing 114.4 trillion yuan (about 18 trillion dollars) in 2021. These achievements indicate that China's economic fundamentals are solid enough to maintain its growth momentum.

Despite the current pressure, fundamentals remain unchanged, and the economy still enjoys strong resilience, enormous potential, vast room for maneuver and long-term sustainability.

China is capable of boosting its economy amid headwinds because it has "ample" policy space, both in terms of monetary policy and fiscal policy, Kristalina Georgieva, managing director of the International Monetary Fund, said in April, adding that China's growth "remains in positive territory."

Similarly, in a recent interview with Xinhua, Khairy Tourk, professor of economics with the Stuart School of Business at the Illinois Institute of Technology in Chicago, noted that the Chinese economy prioritizes long-term structural growth over the short-term, saying he has full confidence in the robust Chinese foreign trade sectors. "I feel quite optimistic about the country realizing its potential," he said.

In the face of challenges, thanks to a slew of pro-growth measures, the Chinese economy is off to a steady start this year, with its GDP up 4.8 percent year on year in the first three months.

"This is a good achievement, benefiting from the economic performance and front-loading macro policy support in the first two months," Jerry Zhang, chief executive officer of Standard Chartered Bank (China), told Xinhua in a recent written interview.

"The impact of the epidemic and global geopolitical risks may continue in the short term, but we think the fundamentals of a resilient, high-potential and prosperous economy in China remain intact," Zhang added.

Workers make chips for export at an electronics company in Sihong, east China's Jiangsu Province, Feb. 23, 2022. (Photo by Xu Changliang/Xinhua)