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China's flourishing market entities vital to its economic recovery

(Xinhua)    15:04, July 23, 2020

Since the city of Wuhan enforced a lockdown six months ago to fight the coronavirus, the shape of China's economic recovery has stoked much debate. The question remains -- will the world's second-largest economy fall into an L-shaped stagnation, or will it present a trajectory in the shape of U, a V, or a W?

China is now at the forefront of both epidemic prevention and control and economic recovery. As it has brought the disease under firm control, China's virus-hit economy is healing better than expected, as indicated by more and more macro-economic data, especially the positive GDP growth in the second quarter of the year.

The country's economy expanded by 3.2 percent year on year in Q2, following a 6.8 percent contraction in Q1. Contraction of the retail sector declined markedly, while foreign trades in H1 exceeded expectations.

A more robust growth is expected in the second half of the year and beyond, and the "V" camp is getting more endorsement. According to an IMF projection, China is expected to achieve what could be the sole positive annual GDP reading among major economies.

Millions of market entities deserve kudos for the bottoming out. Their resilience served as the ballast in seeing the economy weather the challenges, and their vitality will be decisive in enabling a quick V-shaped rebound.

Contributions made by all market entities to epidemic prevention and control, as well as to economic and social development, were hailed by Chinese President Xi Jinping, who, in a recent speech, pledged more efforts to stimulate the vitality of market entities.

By the end of 2019, China had 123 million market entities including nearly 38.6 million enterprises and 82.6 million individual business owners. Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, stressed taking every necessary measure to ensure their survival and better development.

China seeks to forge a new development pattern whereby domestic and foreign markets can boost each other, with the domestic market as the mainstay. To leverage the huge domestic market, the well-being of market entities, which spawn wealth, spur innovations and sustain payrolls, must be secured.

The well-being of market players can gauge the competitiveness of the country's business environment and help boost the government's troubleshooting capabilities. China has been striving to forge a market-oriented, law-based and internationalized business environment, while market entities are benefiting from tax and fee cuts, the reduction of rents and interest rates, and other targeted relief policies.

China is set to complete the building of a moderately prosperous society in all respects this year, despite COVID-19 challenges. As the country embarks on a new journey toward building a modern socialist country, its market entities will only grow stronger and march toward a broader stage with unwavering support.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Wen Ying, Bianji)

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