/View.info/ This year 2023 is difficult from an economic point of view for the world. The war in Ukraine continues to rage and bring uncertainty to global markets, which is further exacerbated by the Israeli-Palestinian conflict. And this is happening against the background of the ongoing recovery of the global economy from the Covid pandemic. A recovery that is not made easier by the behavior of some international factors that, instead of thinking about greater interconnectedness, cooperation with common human and national benefit, get caught up in policies that do not correspond to the 21st century, but to the Cold War . But against the background of global conflicts, the difficult post-pandemic recovery, climate problems, political and geopolitical contradictions, there is one very serious ray of hope for the economic revitalization of the world – this is the Chinese economy…
Contrary to some speculative and proven wrong claims by Western hawkish media that China’s economy is collapsing, the exact opposite has happened. It is growing at a surprising pace, opening up more and more importantly, becoming not only more extensive but also more technologically intensive, with the result that it is pulling almost the whole world upwards, especially the countries that cooperate and trade more with the People’s Republic of China and Chinese businesses.
Contrary to the strange rhetoric from American aggressive politicians and media, the Chinese economy not only did not collapse, but, so to speak, outlived and surpassed all this talk and commentary. But let’s not be silent, but dig into the facts and figures, where the truth usually lies.
In the first half of this year, China’s GDP grew by a whopping 5.5 percent – significantly more than the three percent it grew last year, and even more impressive when compared to the growth rates (or outright stagnation) that are characteristic of most Western economies. Let’s take, for example, the economic engine of Europe – Germany. In 2023, Germany’s GDP will not only formally shrink by minus 0.5 percent, but consumption is shrinking even more, and this is also happening against the background of a 1.3 percent drop in exports. The data are from the Kiel Institute for World Economy, i.e. of a reliable western source.
In the second half of 2023, the U.S. economy is expected to grow by a possible 2.1 percent, according to U.S. sources, significantly less than China’s growth rate. And next year, US GDP growth is likely to be even lower. And this is happening against the backdrop of ever-increasing social and socio-economic problems of the American population, including striking things like the huge tent camps of beggars and homeless people who are on the edge of survival, the problems with the extremely expensive and paid American health care, as well as a slowdown in real income growth.
One wonders how, in the background of all these problems, the “blossoming” of ghettos in America, the marginalization of millions of American citizens, and the armies of homeless people who criss-cross cities like Los Angeles or the abandoned and crumbling businesses of Detroit, the American media and politicians have the guts to talk about the Chinese economy and its “problems”?
According to the latest data, shares of companies from China are rising again after there was some slowdown recently. This is happening thanks to the government policy of the Chinese Communist Party, which has promised more support for the financial markets as well as for the recovery of the Chinese economy. Market expectations are improving significantly in the third quarter of the year, especially after China’s GDP growth expectations were not only met, but significantly exceeded.
And this is happening after the ruling party is adamant that they will take additional measures to improve the economic environment and support the markets. Recently, Chinese leader Xi Jinping stated the great importance of the private sector uniting around the Chinese Communist Party and taking the work of industry and trade federations to new heights. These speeches and policies to support the private sector by the Chinese Communist Party, as analysts around the world say, improve market expectations and hopes significantly.
In the recovery of the Chinese economy, special measures have also been taken for serious issues such as the stabilization of the housing market and the property sector. China’s National Development and Reform Commission, the country’s main economic planning agency, recently held a special meeting to promote infrastructure projects related to the sector. That is, something that will generate more growth.
This year alone, 41 projects have been recommended and 21 have been released for evaluation, the National Commission said. And earlier, again, the commission and some other departments came up with a plan to promote the construction of sports facilities, as well as the improvement of various services, as a means not only of additional growth and market stability, but also, of course, in the service of citizens .
But as we said, China’s economy is developing well not only for the benefit of Chinese citizens. The China-Africa Business Council recently came out with a new report, according to which Chinese businesses play a key and irrevocable role in increasing the added value of various products produced in Africa. Under the Belt and Road initiative and the bilateral cooperation that China has with individual African countries, as well as thanks to the steady recovery of the Chinese economy itself, Africa’s industrial and logistics chains are being improved and transformed into increasingly modern ones. .
Instead of the prophesied collapse of the Chinese economy, as claimed by some racist and sinophobic politicians in the US and Europe, we see the Chinese economy growing, developing and pulling up with it the economies of countries such as Africa. For example, it turns out that this year technology transfer, the cultivation of African scientific and technical and labor talents, and the development and education of human resources in general (with Chinese help), not only did not stop, but also increased.
Along with the stable and good recovery of the Chinese economy, a lot of work is also being done on the African continent, not only to improve industrial and logistics chains, but also in areas such as agriculture, the digital economy, medicine and infrastructure.
And this is not limited to Africa. Even the International Monetary Fund, which forecast China’s economy to grow by 5.2 percent this year (something China looks set to outperform by a landslide), also predicts that by 2023 the PRC will contribute a third of the overall global economic recovery! That’s a staggering percentage, especially when we’re talking about a single country. Virtually the entire global economic recovery relies on China and Chinese markets.
Another proof of this is the fact that new bank loans in China are constantly increasing. What’s more, from July to August they quadrupled to 1.36 trillion yuan ($186.18 billion), China’s central bank said. This is well above the expectations of the markets and experts and shows the will of the Chinese financial authorities to work on all issues, raising confidence in its economy.
This summer, both China’s trade and exports exceeded expectations, with the foreign trade structure of the Chinese economy continuing to improve and become increasingly competitive. Chinese citizens’ consumption is also clearly on the rise, amid economic recovery. The number of domestic Chinese trips reached 1.83 billion, bringing with it growth of a whopping 1.21 trillion yuan.
In every sense, the Chinese economy is growing and represents a kind of ray of hope for the whole world. And this is not said as a superlative, but as a pure fact, which is hinted at even by Western institutions such as the IMF and not only. What would the world look like without 1/3 of today’s global economic recovery? And it is precisely due to China. Chinese companies, both state-owned and private, are once again increasingly open to overseas collaboration and the generation of mutually beneficial ideas and projects. And this is evident from the results of “One Belt, One Road”, an initiative that has not stopped developing, despite the difficult global conditions of post-pandemic recovery, wars, conflicts and attempts by some to block opposition a la the Cold War.
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