upamfva
Matrose
Joined: 11 November 2021
Location: Switzerland
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Posts: 17
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| Posted: 15 June 2022 at 02:05 | IP Logged
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Why pessimists are wrong about Chinese economy
Amid the latest COVID-19 flare-ups in China, fallacies
have emerged in the Western media, from hyping up China's
suffering from a loss in foreign investment and supposed
economic stagnation to accusing China of exacerbating the
global supply chain crisis and drawing smaller economies
into "debt traps."To get more
china economy
latest news, you can visit shine news official
website.
The ultimate goal of these bizarre claims is to discredit
China's economy and its dynamic zero-COVID policy.First,
all that is needed is a simple review of the hard data
and interviews with business insiders to avoid the absurd
belief that foreign capital is leaving China.
In the first four months, foreign direct investment (FDI)
into the Chinese mainland, in actual use, expanded 26.1
percent year on year to 74.47 billion U.S. dollars. The
country saw 185 newly-added major projects during the
period, each with foreign investment of over 100 million
dollars.
These figures again demonstrate that China remains one of
the preferred destinations for global investors.John
Ross, former director of Economic and Business Policy of
London, has refuted the view calling on foreign companies
to leave or minimize investment in China, stressing the
most important thing is to examine the facts.
As for the balance between COVID-19 controls and economic
development, Ross said, "China dealt with it quite
successfully and this therefore helps its economy to
rebound quickly," highlighting "The results show that
because the economy grew very quickly, this makes it much
more attractive to FDI."
A recent report released by the American Chamber of
Commerce in South China has indicated that more than 70
percent of the assessed companies have reinvestment plans
in China for 2022, and 58 percent consider their overall
return on investment in China to be higher than in other
places.
In fact, despite temporary fluctuation facing the Chinese
economy, several global investment banks, such as Goldman
Sachs Group and JP Morgan Chase, still earmarked Shanghai
as a target for major investment in the coming years, the
Financial Times reported.
Clearly, far-sighted investors believe that short-term
setbacks in the Chinese economy won't derail business
growth in the long run.Although the Chinese economy has
encountered several difficulties and challenges so far
this year, it is still too early to think that the
country's economic growth is slowing down.
As one of the first countries to resume work and
production, China became the only major economy to
register positive growth in 2020, with its GDP surpassing
114.4 trillion yuan (about 18 trillion dollars) in 2021.
These achievements indicate that China's economic
fundamentals are solid enough to maintain its growth
momentum.
Despite the current pressure, fundamentals remain
unchanged, and the economy still enjoys strong
resilience, enormous potential, vast room for maneuver
and long-term sustainability.
China is capable of boosting its economy amid headwinds
because it has "ample" policy space, both in terms of
monetary policy and fiscal policy, Kristalina Georgieva,
managing director of the International Monetary Fund,
said in April, adding that China's growth "remains in
positive territory."
Similarly, in a recent interview with Xinhua, Khairy
Tourk, professor of economics with the Stuart School of
Business at the Illinois Institute of Technology in
Chicago, noted that the Chinese economy prioritizes long-
term structural growth over the short-term, saying he has
full confidence in the robust Chinese foreign trade
sectors. "I feel quite optimistic about the country
realizing its potential," he said.
In the face of challenges, thanks to a slew of pro-growth
measures, the Chinese economy is off to a steady start
this year, with its GDP up 4.8 percent year on year in
the first three months.
"This is a good achievement, benefiting from the economic
performance and front-loading macro policy support in the
first two months," Jerry Zhang, chief executive officer
of Standard Chartered Bank (China), told Xinhua in a
recent written interview.
"The impact of the epidemic and global geopolitical risks
may continue in the short term, but we think the
fundamentals of a resilient, high-potential and
prosperous economy in China remain intact," Zhang added.
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Topic: Why pessimists are wrong about Chinese ec
