‘Hidden pockets of strength’ in China’s economy are growing (Global Times editorial)

Photo by Lujiazui:VCG

If you look at all the recent foreign media coverage of the Chinese economy, you will likely be confused, as different reports paint very different pictures, many of which contradict each other. But for long-time observers of China’s economy, it is easy to notice that there has been a noticeable increase in positive coverage in overseas media, allowing the world, including us, to see the richer dimension of the Chinese economy.

It is essential for the whole world to assess and judge the current situation and future trends of the Chinese economy as comprehensively and accurately as possible. However, in many cases, people have the problem of not seeing the forest for the trees, especially since China’s economy has faced serious challenges this year due to adverse internal and external factors, such as as the COVID-19 pandemic and the worsening geopolitical situation. Some voices outside China are expressing pessimism towards the Chinese economy, and pessimistic sentiment has also emerged in the country.

To be honest, at a time like this, the fact that many optimistic voices about China’s economy have emerged in foreign public opinion seems to be a bit “unexpected” and naturally attracts people’s attention. But it is more important to understand how the logic and perspective behind these opinions can inspire us and if they can help us see more clearly the road ahead.

A Bloomberg report released on Friday, titled “China’s economy has hidden pockets of strength,” says the economy may be healthier than it looks. In a Thursday article, titled “Don’t Believe the Grim Forecast. China Is Just Fine,” Bloomberg writes, “Industrial China is alive and well despite fears of an economic slowdown. It just doesn’t look like what he was before.” It’s time to “look [China’s economy] through a new lens,” the report suggests. Meanwhile, UK media outlet MoneyWeek claim that most analysts who argue that “China is in serious economic trouble” are under the illusions that “Britain, the United States, Germany or France would kill for numbers as good as China’s economic growth rate and low inflation.

Many people may wonder why foreign companies in China have increased their investments instead of pulling out of the country, as Washington goes all out to isolate and besiege China economically. The answer is not really complicated. The Chinese market is indispensable for large companies and certain industries, not only because of its size, writes a German media on Thursday. China has a large group of highly qualified professionals and numerous partners in the field of high technology. Moreover, the results of research and development can be applied quickly and new high-tech products are accepted by a public very favorable to innovation.

Of course, just as the MoneyWeek article mentioned above suggests, a lot of people in the West want China to fail, and they’re just looking for all the evidence they can find to back that up. Former US Treasury Secretary Lawrence Summers recently said that the “China overtakes the US” theory is reminiscent of “the economic forecasts for Russia that were made in 1960 or for Japan that were made in 1990”. What he means is that the Chinese economy is following the same path as the Soviet Union and Japan. While the global economy as a whole is not doing well, countries are looking for more effective ways to revive their economies. But when it comes to China, part of the public opinion often tries to steer the country towards information warfare and competition between ideologies.

For the Chinese economy, pessimists never run out of reasons to be pessimistic, and optimists can always find evidence to be optimistic. Accompanied again and again by the sound of pessimistic voices, the Chinese economy has followed a great upward trajectory over the past 40 years, which has become the legend of this era. This is what all Chinese people have realized step by step. It doesn’t matter how others talk about it. The key is that we are determined, and we firmly believe that as long as we work hard, our lives will definitely get better and better. Over the past decades, China has navigated through various contradictions and problems, and the password to making breakthroughs is “doing our own things well with firmness.”

In the reports, some overseas media said bluntly that some China investors and watchers “didn’t want to believe that the global factory could selectively upgrade and gain market share as it has.”

According to data released by China’s Commerce Ministry on Thursday, from January to July, the country’s actual use of foreign capital was 798.33 billion yuan ($123.92 billion), an increase of 21 percent. 5%. The actual use of foreign capital in the high-tech industry increased by 32.1%. In the first seven months, Chinese exports accounted for 15% of world trade, a level reached only by the United States in the 1950s and 1960s. For a long time, the outside world had a relatively large cognitive blind spot on the positive aspects of the Chinese economy.

China’s economy has become a vast forest that defies human cognition. In this forest, some trees are thriving, some young shoots are barely emerging from the ground, and some trees have worms. However, endless life and vitality are the main themes of this forest. This is the greatest certainty of the Chinese economy.

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