Facing an increasingly complicated external environment, trade restrictions, can China continue with its economic growth story and more important as the growth engine for Asia?
When posed this question to a top economic planner from the National Development and Reform Commission during a recent interview, he told reporters that China is fully confident and capable of maintaining sound, healthy, and sustainable economic growth.
China faces the triple pressures of demand contraction, supply shocks, and weakening expectations. But its economic resilience, massive potential, bright prospects, and long-term sound growth trend remain unchanged he added.
A look at the GDP numbers shows heartening figures, the country’s gross domestic product exceeded 114 trillion yuan or about 18 trillion U.S. dollars in 2021 which means its to combat risks and shocks has further increased with sheer financial power. China’s foreign reserve stands at US$3.39 trillion, which is more than Japan, Switzerland, and Russia combined which are the top 3 below.
Despite manufacturing (PMI) figures being down in January these were minor and are associated with CNY closures and factory slowing down for the coming holidays. However, there are new sectors showing progress like the Service industry which grew by 16% mainly from communication and knowledge-based, an area to watch for.
The nation has also managed to put its energy crisis behind, energy supply has seen marked improvement with increasing coal production capacities and declining prices, this will allay any further fears in affecting industries while giving potential for consumption growth.
Experts in Beijing have a multitude of arsenal to cope with risks, for 2022 and beyond the Middle Kingdom will maintain prudent and effective macro policies, enhance its policy coordination, and will firmly implement the strategy of expanding its domestic demand.