China’s COVID policy tweaking to propel global economic growth

Customers shop at a supermarket in Beijing’s Xizhimen area on Dec 6. The city and regions in other parts of China have eased COVID-19 restrictions to varying degrees. (PHOTO PROVIDED TO CHINA DAILY)

BEIJING – By ensuring a smooth transition of the COVID-19 response phases, China is projected to steadily resume economic growth and infuse new vigor into the global economic recovery.

The country recently rolled out fine-tuned epidemic response measures seamlessly. Given that China is the second-largest economy in the world and a major link in the global supply chain, these measures are conducive to maintaining unimpeded logistical channels as well as facilitating international exchanges of goods and the flow of people.

It is worth noting that China's latest epidemic policy adjustments, proactive rather than passive, are not arbitrary decisions but grounded on epidemic prevention and control practices and scientific research

It is worth noting that China's latest epidemic policy adjustments, proactive rather than passive, are not arbitrary decisions but grounded on epidemic prevention and control practices and scientific research. They are aimed at protecting people's lives and health to the utmost while minimizing the impact of COVID-19 on economic and social development.

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China has introduced a series of stimulus packages intended to help enterprises affected by the epidemic gradually offset negative impacts, improve consumer expectations, and boost the confidence of global investors, as the pathogenicity of the current Omicron strains weaken, the vaccination rate nationwide rises, and the country continues to accumulate experience in containing the epidemic.

Condition-based optimization is conducive to boosting economic circulation, both domestically and internationally. Lately, entrepreneurs from Zhejiang, Guangdong, and other foreign trade powerhouses in China have started overseas trips to seek business opportunities in various parts of the globe. Meanwhile, with the gradual reopening of Shanghai Disneyland, ski resorts in north China, and various other recreational venues across China, people can enjoy leisurely pleasure.

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"Recovering private consumption" is a driver for China's economic growth next year, noted Robin Xing, chief China economist with Morgan Stanley. The investment bank has called for investments in Chinese stocks, upgrading the country's equities from "equal-weight," a position they had held since January 2021, to the buoyant position of "overweight."

In the next 15 years, the world's most populous country will see its middle-income population increase to more than 800 million, whose strong consumption power constitutes a super-large market, creating enormous opportunities for foreign businesses.

Amid short-term setbacks and the headwind of complicated domestic and international situation, China's economic fundamentals that will sustain long-term growth remain unchanged.

China cannot develop in isolation from the world, nor can the rest of the world develop without China. From 2013 to 2021, China's economy grew at an average annual rate of 6.6 percent, with its contribution to global economic growth averaging 38.6 percent. Global investors cannot afford to ignore the Chinese economy, as pointed out by a recent opinion article in the South China Morning Post, citing a Federal Reserve discussion paper that describes China as a "driver of global business activity."

China adheres unwaveringly to its fundamental state policy of opening up and its firm resolve to enhance cooperation with the international community. It is committed to attracting and safeguarding foreign investment.

Major global institutions, including the International Monetary Fund and the World Trade Organization, have hailed China's firm commitment to deepening reform and opening up and recalibrating its COVID-19 response.

The larger the obstacle, the greater the necessity for concerted actions. As the world economy is facing unprecedented multiple challenges, China's role in addressing the predicament is indispensable.