Evading the global trend China’s economy bounces back, faster & harder than pre-pandemic
It’s been a little over a year that coronavirus pandemic clawed China and started spreading across the country and beyond. Apart from the massive heart-wrenching effect on lives, the pandemic tore part global economy and China was no different. Now, China’s economy is steering its way back on track and is bouncing back fast and hard, better than it did pre-Covid.
On Monday, the published economic data showed China recording growth of 2.3% in 2020. This made the Asian country the only major economy to show growth in a year when coronavirus was taking a toll on global economies. As competing economies, United States of America, Europe, Japan and India, are struggling to tackle ‘winter Covid-19 wave’, China is enjoying its view from the top with buoyant economy, claiming global leadership in the post-Covid-19 era.
The National Statistics Bureau has highlighted China’s GDP (Gross Domestic Product) recorded a rise of 6.5% during 2020 fourth quarter. This surpassed the growth in 2019 end which was 6%. China’s GDP crossed milestone in 2020, recording over $15 trillion or 100 trillion yuan.
Bureau’s head Ning Jizhe said, “In an extraordinary year, China’s economy was able to record an extraordinary accomplishment. It’s a performance that is satisfactory to the people, watched by the world, and can be recorded in the annals of history.” He added that crossing GDP milestone by China reflects how “our country’s economic strength, science and technology strength, and overall national strength have jumped to a new level.”
Spring 2020 saw SARS-CoV-2 virus containment by China, with small scale re-emergence in past few weeks. This has helped China keep on the crucial sectors like construction, heavy industry and export manufacturing working at a time when other nations were grappling the crisis.
China’s foreign minister Wang Yi recently addressed the world leaders and said that under leadership of President Xi Jinping, China has recorded fast recovery and that China “has brought hope for the world economy to step out of the doldrums.”
Employment too is picking up with boost in economy. China has successfully created 11.86 million jobs during 2020.
But some economists highlight the impressive at first glance performance of China’s economy. It is fueled by country returning to old ways causing foundation of economy hollow and fragile – debt fueled infrastructure building, relying on heavy and old industries, including steel production.
China is still facing global challenges in trade sector, including trade tensions with the US. This also brings in big challenge to incoming President Joe Biden and his administration who will have to deal and work on the strained relationship between US and China under Trump presidency.