Xinhua Commentary | China leads in economic recovery in 2020

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Added On January 21, 2021

China has done something no other major economy did in 2020! In the year, China's gross domestic product (GDP) exceeded the 100-trillion-yuan (15.42 trillion U.S. dollars) threshold for the first time in history. Wow...How impressive! A new milestone for the Chinese economy!

 
At a time when the world is still struggling under the pandemic-triggered recession, China is now pulling ahead in the global economic recovery.
My name is Wang Zihang.This is Xinhua Commentary.
 
 
The COVID-19 pandemic is more than just a global health crisis. China's economy got off to a wobbly start in 2020 when it fell victim to the new coronavirus. But by the end of 2020, it is proving to be the fastest to emerge with an economic expansion for the whole year.
 
How did China achieve a V-shaped economic rebound?
First of all is Decisive actions.
With an approach characterized by speedy contact tracing and mass testing, China has succeeded in rapidly cutting off transmission routes. The strong political leadership, openness and transparency, technology, and targeted measures and strong support from the people have all contributed.
The second is about supportive policies.
 
The government has rolled out a raft of macro-policy measures, including increased fiscal spending, tax reliefs, and lending rate and reserve requirement ratio cuts to stabilize industrial chains and employment. China's financial institutions and booming digital economy have played a vital role in the process. 
 
So, What does China's economic comeback mean for the world?
 
1. CHINA AS CONTRIBUTOR 
China's contribution to world economic growth has long been around 30 percent as the major growth engine. The latest World Economic Outlook report released by the Organization for Economic Cooperation and Development predicts that China will contribute more than one-third of global economic growth in 2021.
 
2. CHINA AS MARKET 
China has long championed free trade, multilateralism, and the construction of a community with a shared future for humanity. Since the beginning of 2020, China has fully implemented its foreign investment law. Its negative list for market access in pilot free trade zones has been further shortened to the benefit of foreign investors.
 
Amid the epidemic, China's retail sales of consumer goods have gradually picked up. Despite a 3.9-percent fall for the whole year, the key barometer of consumption went up 4.6 percent in the fourth quarter, nearing the sector's pre-epidemic level.
 
3. CHINA AS COOPERATOR 
The year 2020 also marked China's strong pushback against attacks on the multilateral trading system. China joined the world's largest free-trade bloc by sealing the Regional Comprehensive Economic Partnership (RCEP) agreement. It also completed negotiations on the China-EU investment treaty, bringing the two major economies closer.
 
There is no doubt that 2021 is going to be another year of challenges. As it further opens to the outside world, China will create more opportunities for mutually beneficial cooperation, and make greater contribution to stability and prosperity of the world in the post-pandemic era.