China's economy witnesses the steady and sound growth momentum consolidated

Xiao Jun Zheng
Tuesday 3 Aug 2021

China will continue to strengthen cooperation with Egypt in fighting the COVID-19 pandemic, share experience and practices on economic recovery, and work with Egypt to overcome the impact of the pandemic

China’s National Bureau of Statistics recently released macroeconomic data showing that China’s GDP grew by 12.7 percent Y-o-Y in the first half of the year, representing a good momentum of steady growth, which continually injects confidence into the global economic recovery.  

China witnesses sustained and steady economic recovery 

First of all, the employment market and consumer prices remained stable on the whole. In June, the surveyed unemployment rate in urban areas was 5.0 percent — the same as in May — and 0.7 percentage points lower than the same period last year.

Consumer prices rose mildly. The consumer price index (CPI) went up by 0.5 percent Y-o-Y in the first half of the year. In June, the consumer price went up by 1.1 percent Y-o-Y, with food prices falling by 1.7 percent.  

Second, the market is substantially motivated; in the first half of this year, 6.24 million new market entities were registered nationwide for tax purposes, an average of more than 30,000 new market entities per day. 

Third, emerging growth drivers continue to thrive. The added value and investment in high-tech industries grew significantly faster than that of all industries and all investment.  

Fourth, foreign trade and foreign investment increased substantially. From January to June, imports and exports totaled $2.79 trillion, up by 37.4 percent Y-o-Y, and the scale of foreign trade reached a new high. From January to May, the actual use of foreign capital in China reached $71.58 billion, up by 39.8 percent Y-o-Y.  

Fifth, industrial production grew steadily. In the January-June period, electricity generation increased by 16.2 percent Y-o-Y, and the weight of freight sent by the railway increased by 8.9 percent Y-o-Y.  

Finally, the cost of comprehensive financing has been steadily reduced. The corporate loan rate in January-May was 4.64 percent, down by 0.18 percent Y-o-Y.  

China made steady and orderly progress in key areas

First, China has been improving ways for macro-economic adjustment. China has implemented an employment-first policy, refrained from indiscriminate fiscal and monetary policies, and adopted a combination of measures to reduce financing costs for micro, small, and medium-sized enterprises (MSMEs).  

Second, we continue to promote the development of market entities by advancing the reform of delegating power, improving regulation, and providing services to constantly stimulate the vitality of market entities and the creativity of society.

China has improved its business environment, jumping from 91st place in 2012 to 31st place in 2020 among 190 economies. China has been simplifying enterprise-related approvals and strengthening ongoing and post-business oversight to lower business operating costs.  

Third, we will continue to cut taxes and fees. We will continue to implement structural tax cuts, leverage government funds, and conserve and expand revenue sources to create a more enabling environment. In the first five months of this year, a total of 224.2 billion Yuan of taxes and fees were cut nationwide.  

Fourth, new drivers of growth have been fostered and expanded. We keep promoting the wide application of big data, cloud computing, and the Internet of Things (IoT); strengthen policy incentives for entrepreneurship and innovation; and give full play to the driving role of pilot free trade zones.

Fifth, we have continued to ensure and improve basic living standards. We will focus on ensuring compulsory education, basic medical care, and basic housing. 

China’s performance brings confidence and momentum to world economic recovery

The macro economic data in the first half of the year showed the strong resilience and vitality of the Chinese economy, adding “bright colour” to the global economic recovery under the shadow of the COVID-19 pandemic.

China will continue to play the role of “anchor” and “booster” for the world economy. China has continued to consolidate and expand its achievements in pandemic prevention and control, as well as economic and social development.

It has played a vital role in overcoming the impact of COVID-19 on global industrial chains, supply chains, and trade; improving the efficiency of resource allocation in the global market, alleviating global supply disruptions; and improving the well-being of consumers around the world.  

In a recent report, the World Bank raised its forecast for China’s economic growth in 2021 to 8.5 percent, up by 0.4 percentage points from its previous report in March.  

Chinese development benefits the rest of the world 

China will unswervingly open up in all respects to make the Chinese market a market for the world, a market for all to share China’s opportunities with the rest of the world.  

Egypt is an important partner in the Belt and Road Initiative. It was among the first group of countries to conduct phase III clinical trials of the Sinopharm vaccine and the first country in Africa to produce Chinese vaccines locally.  

The pandemic has not hindered economic and trade exchanges between China and Egypt. In the first half of 2021, the total bilateral trade between China and Egypt was $9.316 billion, up by 39.81 percent Y-o-Y.

China has remained Egypt’s largest trading partner for eight consecutive years since 2013. In the first quarter of this year, China’s new direct investment in Egypt reached $83 million, up by 134 percent Y-o-Y.  

China will continue to strengthen cooperation with Egypt in fighting the COVID-19 pandemic, share experience and practices on economic recovery, and work with Egypt to overcome the impact of the pandemic at an early date, bringing benefits to our two peoples and building a community with a shared future.

*Xiao Jun ZhengCharge d’affairs of the Chinese embassy in Egypt

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