China's steady economic recovery persists against headwinds

BEIJING - Solid growth momentum and policy support are helping China's economy sustain its steady recovery against new headwinds at home and abroad, official data shows.

The latest economic indicators, including industrial production, fixed-asset investment, and retail sales of consumer goods, continued to point to an upturn in July, according to the National Bureau of Statistics (NBS).

Due to mounting external uncertainties and disruptions from the summer flooding and COVID-19 resurgence, the growth in some economic activities softened last month from a year earlier, said NBS spokesperson Fu Linghui.

Affected by the pandemic, China's economic growth posted a "high-after-low" trend in 2020, Fu said. As a result, the year-on-year growth trend will be "low-after-high" for this year.

"But on the whole, the major macroeconomic indicators are still within a reasonable range, and the economy maintains a stable recovery," Fu said.

Fu attributed the overall economic stability to growing incomes. This growth can further drive consumer demand, a significant momentum for economic growth.

In the first half of this year, the per capita disposable income registered a 12-percent growth year-on-year, a notably higher growth rate compared with the first quarter.

The country's per capita expenditure, meanwhile, increased by 17.4 percent year-on-year in the first half, faster than the income growth. This indicated that consumer demand had further expanded, Fu said.

Investment, another key driver of the economy, picked up speed too in July, as shown by the NBS data.

For instance, investment in the manufacturing industry increased by 17.3 percent year-on-year in the first seven months, 1.1 percentage points faster than the first half.

"As the major projects for the 14th Five-Year Plan period (2021-2025) start construction over time, and as the economy recovers, investment in the manufacturing industry will continue to heat up," Fu said.

Meng Wei, a spokesperson for the National Development and Reform Commission (NDRC), said at a Tuesday press conference that the NDRC, as China's top economic planner, will ensure the smooth progress of these projects.

The spokesperson said that the NDRC would encourage investment in the advanced manufacturing industry, particularly in technological upgrades and the green shift, Meng said.

It will also roll out a policy mix to mitigate pressure from the commodity price hikes to reduce costs for manufacturers, said Meng.

To handle new economic situations, an executive meeting of the State Council, China's cabinet, Monday urged efforts to adequately increase domestic production and release inventories of vital raw materials to curb surging prices. It also suggested implementing tax and fee cuts to help market entities handle difficulties.

The meeting also emphasized employment's role in safeguarding people's income and livelihoods. It decided to prioritize jobs in the macro policies to help the unemployed.