China's economic growth expected to embrace continuous pickup

Impacted by COVID-19 resurgence, China in November saw restrained consumption and service sector, a fall in the rise of foreign trade, and weakened expectation of manufacturing enterprises.

Facing new situations and challenges, local authorities and departments have implemented the new measures rolled out by the country to optimize pandemic response, so as to make COVID-19 prevention and control more science-based and targeted.

Besides, they have also made all-out efforts to implement a series of stimulus packages and follow-up measures to bolster the economy, leveraged policy-backed and development-oriented financial instruments, offered new relending facility to support businesses in upgrading their equipment, and expanded medium- and long-term loans to the manufacturing sector.

A bulk carrier from the port of Itaguai, Brazil docks at a terminal in Putuo district, Zhoushan, east China's Zhejiang province, December 2022. The vessel will visit the Taicang port of Jiangsu province after 92,134 tons of ore fines is unloaded from it. (People's Daily Online/Yao Feng)

In general, China' economy has withstood the impacts from unexpected factors and shown strong resilience and potential, said a spokesperson of China's National Development and Reform Commission (NDRC), the country's top economic regulator. The spokesperson noted that the country has seen a steady increase in development quality, as well as stable employment and commodity price. The trend for stable economic recovery remains unchanged, the spokesperson added.

"At present, Chinese economy is facing a more complicated and severe external environment, and weakened momentum for global growth. The country still needs to make arduous efforts to promote sustained economic recovery," the spokesperson remarked.

The spokesperson noted China will keep implementing a series of stimulus packages and follow-up measures to bolster the economy, give play to the coordination mechanism on effective investment for major projects, and further expedite the financing of projects via policy-based and developmental financial instruments and speed up infrastructure construction.

The country will also accelerate the recovery and development of key consumption areas, reinforce its support for medium-, small- and micro-sized enterprises and individual businesses, strengthen the security of food, energy and resources and industrial and supply chains, and ensure stable supply and price of important livelihood commodities.

"China's economy will continuously pick up with the implementation of optimized COVID containment measures and stimulus policies taking effect.," the spokesperson noted.

Since this year, the Chinese economy has shouldered continuous pressure. However, it is still highlighted by the new energy, digital economy and high-tech manufacturing sectors.

Photo shows people skiing in a ski resort in Qinhuangdao, north China's Hebei province, December 2022. Qinhuangdao has vigorously developed the "ice industry" over the recent years, utilizing its winter tourism resources to boost economic development. (People's Daily Online/Cao Jianxiong)

According to statistics, the total added value of high-tech manufacturing climbed 8 percent in the first 11 months this year compared to a year ago, 4.2 percentage points higher than that of industrial enterprises above the designated size. During the same period, investment in the high-tech field was up by 19.9 percent, 14.6 percentage points higher than the total investment.

The artificial intelligence, big data, cloud computing, Internet of Things (IoT), photovoltaic and new energy vehicle sectors delivered remarkable performance.

The NDRC said it will work with relevant departments to accelerate the implementation of the innovation-driven development strategy, and further give play to the important role played by the high-tech industry in leading and supporting high-quality economic development.

They will encourage and guide market entities to develop core technologies, massively put into use innovation outcomes, and bolster areas of weakness in the fields that concern development security. They will enhance risk monitoring and warning for important industrial and supply chains and the evaluation of emerging problems, so as to maintain stable industrial and supply chains.

They will work to foster and strengthen new models and businesses, promote cluster development of strategic emerging industries and foster a large batch of areas of economic growth. The construction of new infrastructure will be taken as an important approach to expanding effective investment.

The headquarters of the Bank of Hainan in Haikou, south China's Hainan province is under construction, November 2022. (People's Daily Online/Zhang Mao)

The country will accelerate the development of digital economy, speed up the implementation of major projects in the sector such as channeling computing resources from the eastern areas to the less developed western regions, and promote in-depth integration between digital economy and real economy, to build digital industry clusters that are globally competitive.

The country will promote in-depth integration among innovation, industries, capital and human resources, draw innovation factors to enterprises and consolidate the dominant position of technology enterprises in scientific innovation.

It will also explore a diversified investment mechanism and vigorously promote the construction of innovation platforms, including engineering research centers, industrial innovation centers and enterprise innovation centers, to nurture and attract more high-level talents for innovation and generate more major original and leading achievements.

According to recent forecasts by the Chinese Academy of Social Sciences, the country's economy is expected to grow around 5.1 percent in 2023 due to continued optimization of COVID containment measures and a relatively low comparison base.