Most of the world struggles with the coronavirus pandemic. Nevertheless, China shows that a fast-economic rebound is possible when the COVID-19 is brought firmly under control.
In the July-to-September quarter, the Chinese economy surged 4.9 percent, compared with the same months last year. That is what the Chinese National Bureau of Statistics announced on Monday. The robust performance brought China almost back up to roughly six percent of growth that it was reporting before the pandemic.
Last spring, many of the major economies of the world climbed quickly out of the depths of a contraction. It was when shutdowns caused output to fall steeply. Nevertheless, China is the first to report growth that significantly surpasses where it was last year. The United States and other nations will most probably report a third-quarter surge too. Nevertheless, they are just catching or behind up to pre-pandemic levels.
The lead of China may widen further in the months to come. It has a very low indicator of transmission of the virus now. Meanwhile, Europe and the United States face another accelerating wave of cases.
Justin Lin Yifu works at the National School of Development at Peking University. He is a cabinet adviser and honorary dean there. So, Yifu talked at a recent government news conference in Beijing. He said that the vigorous expansion of the Chinese economy would dominate global growth. It accounts for at least thirty percent of the world’s economic growth this year and in the years to come.
Economy of China
Chinese companies make up a more significant share of the world’s protection equipment, exports, manufacturing consumer electronics, and other goods in high demand amid the pandemic. China now buys more iron ore from Brazil, more palm oil from Malaysia, and more pork and corn from the United States. Last spring that has partly reversed a nosedive in commodity prices. Furthermore, it softened the impact of the pandemic on some industries.
The recovery of China has done less to help the rest of the world than in the past. It is because imports have not increased nearly as much as its exports. This pattern created jobs in China. Nevertheless, it places a brake on growth elsewhere.
Also, the Economic recovery of China has been dependent for months on high-speed train lines, huge investments, and other infrastructure. The country has seen the starting of a recovery in domestic consumption in recent weeks.
The people living in export-oriented coastal provinces and affluent were the first to begin spending money again.
