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China's economy remains on solid ground going into next year2021/12/24 10:53:11(Beijing Time) Lange Steel

China's economy is of strong resilience with positive fundamentals in the long term remaining unchanged, although the top leadership acknowledges the country is facing threefold pressure from contraction of demand, supply shocks and weaker expectations, according to the annual Central Economic Work Conference, Xinhua reported.

Stability in economy is highlighted

"The COVID-19 pandemic heavily struck the global supply chain, but China still maintained a stable productive capacity this year," said Xu Binbin, general manager of Jinjiang Lili Toys Co Ltd, in Fujian province, according to Xinhua. 

The company saw rising orders in 2021 with toys and Christmas products mainly exported to the United States, generating over $10 million in total export volume.

As the only major economy in the world that posted positive growth in 2020, China also demonstrated better-than-expected economic performance this year.

In the first three quarters, GDP grew by 9.8 percent year-on-year, and the figure of the whole year is estimated to exceed 8 percent.

However, faced with uncertain factors in domestic and international markets, the Central Economic Work Conference highlighted the importance of "stability" - as one of the priorities in next year's work arrangement.

It reiterated the policy stance of carrying out a proactive fiscal policy and a prudent monetary policy. Continuous support will be injected to real economy, with market entities vitalized, employment maintained and people's well-being safeguarded.

"We have to face up to the difficulties while bolstering confidence," said Zhang Junkuo, deputy head of the Development Research Center of the State Council, according to Xinhua.

The country has the capability to keep the economy operation within an appropriate range, he said.

Innovation and reform adds vitality to the economy

China will firmly advance the implementation of policies related to science and technology in 2022, and adhere to the innovation-driven development, the meeting stressed.

In 2021, China took the 12th place in the Global Innovation Index by World Intellectual Property Organization, ranking first among the world's middle-income economies.

"Technology is playing an increasingly important role in economic development," said Han Wenxiu, a senior official with the Central Committee for Financial and Economic Affair. "Some breakthrough in technology sector can nurture a segmented industry, and ignite numerous investment and consumption demand," said Han, according to Xinhua.

Infrastructure construction should be carried out appropriately in advance, with more investment in pollution and carbon reduction, new energy, technologies and industrial clusters, to expand China's short-term market demand and boost its growth momentum in the long term, Han said.

To relief the pressure of over 150 million market entities, the Central Economic Work Conference said it will implement new policies to cut taxes and fees, ramp up crackdown on monopolies and ensure fair competition through fair oversight, and offer more financing support for real economy.

"No matter what risks and challenges we face up with, the foundation of economic development is ensured as long as market entities are preserved," said Gao Peiyong, vice-president of the Chinese Academy of Social Sciences, Xinhua reported. 

Give full play of consumption in national economy

Although the national economy is affected by sporadic virus outbreak in some regions, the consumption market still delivers great vitality and potential.

From January to November this year, China's retail sales of consumer goods totaled 39.96 trillion yuan, up 13.7 percent year-on-year.

Guided by the "dual-circulation" paradigm, the country pledges to not only expand the domestic market, but also enhance opening-up to the world.

From setting up factories in China before, to moving research centers and headquarters to China nowadays, an increasing number of multinational companies remain optimistic about the country's rapid development.

China's actual use of foreign investment from January to November hit 1,042.2 billion yuan, up 15.9 percent from a year earlier.

The figure directly demonstrated China's attractiveness to the world, said Erik Berglof, chief economist of the Asian Infrastructure Investment Bank, according to Xinhua.

He noted that China's effective measures on containment of the pandemic have to a large extent boosted the confidence of multinationals to invest in the country.

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