Economic data demonstrates China’s continued resilience



China released a series of economic data for October on Monday, beating economists’ expectations. Its retail sales grew 4.9% year on year from an estimated 3.5%, while industrial production rose 3.5%, up 0.4% from the previous month and improving from compared to the forecast of 3.1%. Finally, investments in fixed assets increased by 6.1%, which is relatively consistent with the estimated 6.2% but below the 7.3% forecast.

The data demonstrates the continued resilience of the Chinese economy and its ability to cope with challenges, especially with respect to the keystones of growth: manufacturing, exports and consumption.

Throughout October, there was a lot of talk about a global commodities crisis, which caused the price of coal to soar. This had a ripple effect on China’s power supply and resulted in the closure of some factories due to their huge energy requirements to support production. Despite the challenges, China quickly brought the commodities crisis under control.

By adopting a series of measures, the country dramatically increased its supply and local capacity, punished vendors for rumors that artificially raised prices for profit, and coordinated price controls. As a result, within a month, state planners brought the energy problem under control and compensated for the damage done to the industry, enabling growth – which was also driven by strong demand abroad. – to stand up. This proves that it continues to have one of the most resilient and reliable supply chains.

What’s more, China’s consumption has also grown faster than expected, demonstrating its success in preventing and controlling the pandemic. There has been a growing debate in the West around China’s COVID-19 prevention and control policy, claiming that it will ultimately hurt growth and consumption.

However, there is no evidence to prove it. China has been able to save lives and offset economic damage through swift, targeted and localized action, while minimizing disruption. This has allowed the public to remain broadly confident in their economic activities and spending, as opposed to the constant hesitations, uncertainties and doubts in some Western countries as to whether life will return to normal.

As a result, China’s retail sales growth has been better than expected, and its pandemic prevention and control measures for small outbreaks are far more beneficial than long periods of restrictions or, failing that, doing nothing. to do. In contrast, deaths in the United States now stand at more than 750,000.

Beyond the pandemic, it’s worth noting that during last week’s Singles Day shopping spree, e-commerce giants Alibaba and JD broke their own records, registering $ 139 billion in sales and demonstrating once again continued growth in consumption in China.

On the current trajectory, China will very likely end the year in better conditions than what is currently anticipated, which will see an increase in exports and manufacturing, combined with a containment of energy prices.

Despite the overall stability, uncertainties remain at the international and national levels. The country must do everything in its power to defeat the virus while making increased efforts to ensure that its economy recovers steadily.
Source: China.Org


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