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July 18, 2019

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Economic pessimists risk missing opportunities

IN the face of global economic headwinds, China’s economy grew 6.3 percent year on year in the first half of 2019, remaining on its stable trajectory and setting a good foundation for the country to realize its annual growth targets.

Pessimists may try to render a gloomy picture of the Chinese economy by playing up the retreating expansion from the double-digit growths decades ago.

But those versed in value discovery have a reason to be grateful as they have more opportunities to capitalize on China’s economic growth.

If put in a broader context compared with other countries, China’s economic growth remains one of the strongest in the world.

Although trade friction and protectionism have become much more serious throughout the global market, China saw its exports expand by 6.1 percent and imports up 1.4 percent in the first half. With its foreign trade markets becoming increasingly diverse, China found its trade surplus widened by 41.6 percent year-on-year to 1.23 trillion yuan (US$179 billion).

This performance is a result of market selection, reflecting the competitiveness of Chinese products and the interconnection of China and its trade partners.

On home turf, the contribution of final consumption to China’s economic expansion continues to grow, accounting for more than 60 percent of GDP growth in the first half. No smart foreign businesses would want to miss out on China’s strong purchasing power, especially its lucrative high-end consumers. As per capita disposal income continues to grow faster than the Chinese economy, the Chinese are having a stronger sense of gain from the country’s economic expansion and are more confident about the future of the world’s second-largest economy.

From the moderate rise of the consumer price index and the stable producer price index to lower energy consumption per unit of GDP, China has posted a variety of indicators reflecting strong economic resilience.

Investment, the traditional engine of the Chinese economy, also shows encouraging signs, with social sectors, high-tech and technical transformation of the manufacturing industry all posting a rise of more than 10 percent in investment expansion. Such change indicates an optimized investment structure which will consolidate the foundation of the economy to pursue sustained development.

There is no denying that downward pressure looms. But the country will never stop its reform efforts to rebalance its economy and remove structural and institutional barriers.

As the external challenges have never been so complicated, China is more resolute than ever in pursuing economic sustainability and high-quality development through opening-up and reforms.

Since the way of thinking often decides what one sees, those who make a fuss of China’s slowing economic growth risk missing out on the opportunity of sharing in China’s prosperity.


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