While many countries around the world continue to struggle with COVID-19 and recession, China emerged as the only major economy with positive GDP growth.
The uplifting news from the world’s second largest economy strengthens confidence in the global fight against the coronavirus pandemic, and is also pivotal for the world to achieve economic recovery.
According to China’s government statistics released on Monday, the country's GDP in the third quarter picked up steam to expand 4.9 percent year-on-year, causing the economy to bounce back to 0.7 percent growth in the first three quarters.
Analysts said the economic data for the third quarter will support China to achieve an annual GDP expansion of about 2-3 percent, despite a global recession due to the pandemic.
"China is likely to be the sole major economy in the world to register positive growth this year," Eswar Prasad, a China finance expert at Cornell University, told the Financial Times.
"China's economy continued its rapid rebound last quarter, with the recovery broadening and becoming less reliant on investment-led stimulus," wrote Julian Evans-Pritchard, senior China economist for Capital Economics, in a research note.
Many said China’s recovery is inseparable from the countries stringent lockdown, patient and contact tracing policies, and massive testing intended to contain the virus. China might not be the first country to reopen, but it did reopen wisely on a scientific basis.
Thanks to the well contained epidemic, China’s "domestic economic activities are expected to further normalize in the upcoming quarters," Zhu Chaoping, global market strategist at JPMorgan Asset Management, said. "When consumer confidence improves, consumption might take over investment as the major contributor to domestic demand," he said.
The global supply chain is further guaranteed as China picked up pace to return to normal. As one of the countries owning the largest GDP in the manufacture sector, China has contributed hugely to the production of personal protection equipment, ventilators and many other products in the global fight against the pandemic. After taking control of the virus within its borders, China continues to play an important role as an indispensable link in the supply chain.
China’s revival has created new opportunities for global trade, industry, and public health, which the world should not let slip through their fingers.
With proper measures against the coronavirus, China saw an eye-catching recovery. But more importantly, China’s success brings the world confidence and hope.