Strong fundamentals provide stable base for high-quality development

A worker works at a factory of Harbin Electric Machinery Company Ltd of Harbin Electric Corporation in Harbin, Northeast China's Heilongjiang province, Sept 3, 2022. (PHOTO / XINHUA)

In stark contrast to the volatile economic situation in some major economies, the data bode well for the world's second-largest economy maintaining its recovery curve in the fourth quarter of this year and beyond, reflecting the Chinese economy's capacity to quickly rectify a temporary deviation from its growth course and fend off the spillover effects of an international geopolitical crisis.

That China's gross domestic product increased 3.9 percent in the third quarter year-on-year, a marked rebound from the 0.4 percent growth in the second quarter, reflects the robust recovery momentum and resilience of the national economy.

Although it remains lower than the 4.8 percent growth in the first quarter, it means that the economy grew 3 percent in the first three quarters. With the recent reemergence of the novel coronavirus now under control in most parts of the country, the sharp fall in economic growth has not only been arrested, the economy has rapidly picked up again.

That is a hard-earned result given the complex and severe domestic and international situation and the impact of the multiple unexpected factors the country has faced. One that can be attributed to the arduous efforts governments at various levels have made to faithfully implement the pro-growth policies of the central authorities, which adhere to the general principle of seeking progress while maintaining stability and effectively coordinating epidemic prevention and control with economic and social development.

With the COVID-19 pandemic pressure having eased, the prospects for the fourth quarter look more optimistic as market demand has improved, employment and commodity prices remain stable on the whole — the consumer price index rose 2 percent in the first three quarters and people's disposable income increased by 3.2 percent.

This has created more favorable conditions for the country to pursue high-quality development.

With its strong and stable fundamentals, the Chinese economy will remain on a positive trajectory over the long run, General Secretary of the Communist Party of China Central Committee Xi Jinping said when he led out the new members of the Party's top leadership body to meet the media on Sunday, stressing that the Chinese economy has great resilience, potential and latitude.

The accelerating pace of the recovery of the service sector, which rose 2.3 percent in the first three quarters, 0.5 percentage points higher than that in the first half of this year, and consumption, which surged 0.7 percent in the first three quarters, compared with a 0.7 percent drop in the first half, point to the slow-but-sure recovery momentum, and future growth potential, of the economy.

On the whole, the major indicators have returned to stability and remain within a reasonable range, and positive factors have increased, with grain output, industrial production and investment in fixed assets increasing by 3.8 percent, 3.9 percent and 5.9 percent respectively over the first three quarters.

But with the external environment becoming more complex and severe, and the foundation for domestic economic recovery still not solid, it is important that the government continue to be proactive in its policies.