China's economy, as shown by multiple mid-year indicators, has ridden out its downturn due to COVID-19 strains and bounced back to growth in
the second quarter (Q2). Economists believe that the country's V-shaped
recovery is only getting started.To get more
China economy news, you can visit shine news official website.In Q2, China's gross domestic product expanded by 3.2 percent year on year, reversing a 6.8-percent contraction in the previous quarter.
China's fiscal revenue marked the first expansion this year by gaining
3.2 percent year on year in June, while the contraction of the retail
sector declined markedly.China's economy has gradually emerged from the
slump and returned to the level it was roughly at prior to the outbreak,
backed by the stimulation that has delivered burgeoning signs of work
resumption, industrial chains and services sector," said Shao Yu, chief
economist at Orient Securities.Latest data showed that the purchasing managers' index (PMI) for China's manufacturing sector rose to 51.1 in July from 50.9 in June,
remaining in expansion territory for the fifth month in a row,
indicating stronger confidence of market entities."The steadily firming recovery points to the effectiveness of China's epidemic prevention and pro-growth policies to boost production and
domestic consumption," said Sheng Hai, a macro analyst with China
Industrial Securities.His point was echoed by Steven Zhang, chief economist at Morgan Stanley Huaxin Securities. "China has its institutional advantages that
enable a more agile and rapid response to public safety emergencies like
COVID-19."The prompt introduction and implementation of an array of
measures, including higher fiscal spending, tax relief and cuts in
lending rates and banks' reserve requirements to revive the economy and
support employment, according to Zhang, is one of the major reasons
behind the Q2 positive growth.As recent data showed that China's imports from emerging countries increased significantly, the recovery of the world's second-largest
economy is expected to boost the pace of other economies' restoration,
according to Zhang.In H1, China's trade with ASEAN went up 5.6 percent year on year to 2.09 trillion yuan (about 301.12 billion U.S. dollars), while that with
countries along the Belt and Road (B&R) accounted for 29.5 percent
of the total trade, up 0.7 percentage points year on year.Zhang said that trade between China and other parts of Asia, B&R countries and ASEAN is expected to further expand as the spillover
effects will be more notable due to shorter distance and lower logistics
costs.To mitigate the impact of the COVID-19 outbreak, China has been
investing heavily in infrastructure projects through local government
bond issuance, which is expected to buoy demand for bulk commodities in
the global market, thereby benefiting B&R countries, as major bulk
commodity exporters, Zhang noted."Such effects came in as a demonstration of the new development pattern, or 'dual circulation', proposed in last week's meeting of the
Political Bureau of the Communist Party of China Central Committee,
which underscores the domestic market as the mainstay while domestic and
foreign markets can boost each other," said Zhang.
