Russian media: In 2021, China's economic growth rate hit a ten-year high, and China became the driving force of global economic recovery

Source: Global Times

Russian media: China's economic growth rate hit a ten-year high in 2021, and China became the driving force of global economic recovery. That's the highest pace in a decade and is well above expectations by the Chinese government and independent analysts. This means that China is ready to present more than one surprise to the world.

Image source Visual China

Recently, data released by the National Bureau of Statistics of China shows that China's GDP will exceed 114 trillion yuan in 2021, an increase of 8.1% over the previous year. In this way, China's annual GDP growth rate is significantly higher than the forecasts of international institutions, and even higher than the expected target of the Chinese government. Previously, many economists and independent institutions predicted that China's economic growth rate would be between 5% and 5.3% in 2022. However, the 2021 data suggest that the actual growth rate of china's economy this year may be higher than expected. The successful implementation of the Chinese government's economic policies and the effective prevention and control of the new crown epidemic will enable China's economy to continue to maintain a relatively high growth rate.

Of course, there are still some problems in China's domestic economy: consumer demand, market supply and declining business expectations. The main negative impact in the first half of 2022 is expected to be a slowdown in the recovery of offline consumption, including demand for cars and housing. This is mainly due to the outbreak. The main driver of China's economic recovery will be exports. In 2021, the total value of China's import and export of goods trade was close to 40 trillion yuan, compared with the previous year, foreign trade increased by 21.4%, and the trade surplus was expanded, hitting a record high. All of this is the result of effective policies adopted by the Chinese government: China has managed to maintain supply chains. In 2020, some trading companies were forced to return orders due to supply chain disruptions. Now, the European Union and the United States, which have been severely affected by the epidemic, are reducing production capacity, and orders are being transferred to China. In 2021, China's manufacturing investment increased by 13.5% year-on-year. Factories in China are bound to operate at full capacity in the coming years.

Chen Weidong, president of the Bank of China Research Institute, said that although the epidemic has brought a serious impact on the real economy, it has not changed the rapid growth trend of high-tech industries. The Chinese government and experts predict that in 2022, high-tech manufacturing industries such as medicines, aerospace vehicles, computers and office equipment are expected to continue to maintain rapid growth.

Investors should focus on which Chinese companies are worth investing in. Ju Houlin, director of the China Galaxy Securities Research Institute, said China's economic growth is supported by infrastructure development, which includes both roads and railways, airports, urban subways, urban and rural power grids, as well as digital infrastructure such as high-speed communication networks and data centers, which are necessary for a booming high-tech industry. The Standing Committee of the Political Bureau of the CPC Central Committee has previously proposed to accelerate the construction of new infrastructure such as 5G networks and data centers.

Chinese leaders say the Chinese government will focus on addressing the most serious issues affecting economic growth, including raising the birth rate, narrowing the gap between rich and poor, reducing domestic debt and reducing China's dependence on the rest of the world. Of course, there is also a gradual transition to green energy. (Translated by Konstantin Olissacki, Liu Yupeng)