On May 17th, Consul General Tang Zhongdong published signed article on Star titled China’s Economy Makes A Good Start.
The full text is as follows:
On April 18, the National Bureau of Statistics of China released a report on the performance of the national economy in the first quarter of 2022. Facing the complicated and changeable environment at home and abroad, under the strong leadership of the Communist Party of China (CPC) with Comrade Xi Jinping as the core, the Chinese government and departments at all levels earnestly implement the decisions and deployments made by the CPC Central Committee and the State Council, scientifically coordinate the epidemic prevention and control and economic and social development, adhere to the priority of stability and development, take multiple measures to stabilize economy, ensure people’s livelihood, promote employment, expand consumption, and enlarge investment, resulting in a good start of China’s economy in 2022. Given the severe impact of the epidemic on the world economy and the increasingly complex and rigorous international environment, China’s sound economic development is commendable, and its positive regulatory policies have provided a good example for developing countries.
1. The economy is steadily growing, and people’s livelihood is effectively safeguarded
The national economy continues to develop. China’s gross domestic product (GDP) rises 4.8% year-on-year in the first quarter and 1.3% quarter-on-quarter to 27,017.8 billion RMB, or 4,250 billion US dollars, breaking the record of 4,000 billion US dollars for the first time. The industrial structure has also been significantly optimized.
Total imports and exports continues to grow. Imports and exports of goods total 9,415.1 billion RMB in the first quarter, up 10.7% year on year. Exports total 5226 billion RMB, up 13.4%; imports total 4189.1 billion RMB, up 7.5%. By offsetting imports and exports, China achieves a trade surplus of 1,036.9 billion RMB, or 162.94 billion US dollars. Despite the severe impact of Covid-19 pandemic on supply and transportation chains, China’s import and export markets have shown strong resilience and vitality.
Consumer price rises moderately, and the overall situation of employment remains stable. The per capita disposable income in the first quarter is 10,345 RMB, or 1,627 US dollars, up 5.1% year on year, slightly faster than the GDP growth. Despite the serious global inflation, China’s consumer price index (CPI) rises by 1.1% year-on-year in the first quarter. Since the beginning of this year, the complexity and severity of international situation and the impact of the Cocid-19 epidemic in China have led to a slight rise of the unemployment rate. However, the employment-first policies have been reinforced, and government’s assistance to enterprises has also been strengthened.
2.Chinese government actively regulates the economy and deepens reform and opening up
The economic performance of China in the first quarter of 2022 is good, mainly because under the leadership of the CPC Central Committee with Xi Jinping as the core, the Chinese government at all levels has taken multiple measures to actively regulate the economy and deepen reform and opening up.
First, the implementation of macro policies is significantly intensified. A proactive fiscal policy is adopted to make it more efficient, targeted and sustainable, with the implementation of VAT tax rebates and the issue of special bonds by local government. A prudent monetary policy is adopted to make it more flexible and appropriate, with reasonable and adequate liquidity, increased financial support for the real economy, and appropriate and stable RMB exchange rates.
Second, consumption and investment are increased to unleash the potential of domestic demand. The Chinese government implements policies to help struggling service industries recover, and it promotes the development of new forms and models of consumption such as the integration of online and offline services. The Chinese government actively expands effective investment, speeds up the construction of a number of water conservancy projects, and coordinate the issue and use of special bonds by local governments.
Third, the reform and opening-up continues to be deepened. The Chinese government is building a unified national market and carrying out pilot reforms for a more innovative business environment. The Chinese government accelerates the development of new forms and models of foreign trade and promotes reform and innovation in free trade zones. The Chinese government steadily advances the high-quality development of Belt and Road Initiative and ensures the implementation of the Regional Comprehensive Economic Partnership (RCEP).
3.To deepen China-South Africa cooperation and seek sustainable development together
The steady and sound development of the China’s economy is not only a great benefit to the Chinese people, but also an important opportunity for the rest of the world, especially African countries. The economic cooperation between China and South Africa has injected strong impetus into South Africa’s economic development. China has been South Africa’s largest trading partner for 13 consecutive years. In 2021, the bilateral trade volume increased to 54.35 billion US dollars, up 50.7% year on year. South Africa’s exports to China reached 33.23 billion US dollars, up 59.6%, which led to South Africa’s larger trade surplus. South Africa is also one of the biggest investment destinations for Chinese companies in Africa. By the end of 2021, China has invested over 25 billion US dollars in South Africa. There are more than 200 Chinese companies operating in South Africa and creating more than 400,000 local jobs.
During the phone conversation between President Xi Jinping and President Cyril Ramaphosa on March 18, Xi Jinping pointed out that China and South Africa share a special friendly relationship of comrades and brothers. China stands ready to work with South Africa to move China-South Africa ties forward toward a deeper level with higher quality and broader scope. Given the growing uncertainties in the world economy, it is more important for China and South Africa to support each other and seek common development, jointly implement the nine programs of the Forum on China-Africa Cooperation and the 10-year strategic plan on cooperation between China and South Africa, and deepen cooperation in various fields within the Belt and Road Initiative and the BRICS mechanism. There are bright prospects for bilateral cooperation in 5G, digital economy, high-technologies, e-commerce, smart cities, clean energy and vaccine production. China encourages its enterprises to invest in South Africa and helps the South African government achieve the development goals of the New Investment Initiative.