NEWLY-RELEASED economic data for the first two months of this year show China’s economy has recovered better than expected, with strong rebounds seen in key areas. Overseas observers say the Chinese economy has shown good resilience in the face of pressures and challenges, expecting greater potential for the future. Since the beginning of this year, with the implementation of the macro policy to stabilize growth, China’s industrial production, investment and consumption growth have accelerated, and its import and export volume also maintained a sound momentum in mounting. According to economic indicators for the first two months of the year, the value-added industrial output, fixed-asset investment and retail sales of consumer goods all went up significantly year on year, with 7.5 percent, 12.2 percent and 6.7 percent, respectively. On the basis of a high base, the total volume of imports and exports of goods still maintained double-digit growth, showing persistent resilience of foreign trade growth. Iris Pang, chief economist for greater China at ING bank, hailed Chinese economy as a “big surprise” when commenting on the better-than-expected data for retail sales of consumer goods, industrial production and fixed assets investment. Mao Xuxin, principal economist at the National Institute of Economic and Social Research, a London-based economic think tank, said China’s relatively complete and efficient supply chains have ensured stable production of export products during the COVID-19 pandemic, adding that its supply chains and industrial chains are constantly upgrading. As can be seen from official statistics, high value-added and high-tech products, including new energy vehicles, have made a greater contribution to the export growth, Mao said. As the quality of China’s economy improves and the consumption level rises, foreign investors are increasingly interested in investing in China. In the first two months of this year, foreign direct investment into China, in actual use, expanded 37.9 percent year on year, among which high-tech industries saw a 73.8 percent yearly increase, becoming structural highlights of foreign investment growth. Based on its confidence in the Chinese economy and long-term commitment to the Chinese market, Germany’s BMW Group announced Feb. 11 that it would extend the validity of its joint venture until 2040 and increase its stake in BMW Brilliance from 50 percent to 75 percent. In the eyes of Tommy Wu, lead economist at British think tank Oxford Economics, China’s rapid foreign direct investment growth has been stimulated by its continuous opening up policies and the resilience of its supply chains. Recent data on industrial production and manufacturing investment suggest these sectors have been very active and supportive of the economy, Wu said. Herman Tiu Laurel, founder of Philippine BRICS Strategic Studies, said “the double up to triple digit growth of high-tech manufacturing, new energy vehicles, industrial robots are really evidence of the Chinese economy elevating to cutting-edge and even higher-quality development.” In terms of the global environment, the COVID-19 pandemic is still spreading, the world situation is turbulent, geopolitical conflicts are intensifying, and external instability and uncertainty are growing. China’s economy is facing triple pressures of shrinking demand, supply shock and weakening expectations. (Xinhua) | 