Source: China Economic Network
As various policies and measures to do a good job in the "six stability" work and implement the "six guarantees" tasks continue to be put in place, China's economy continues to recover steadily. Data released by the National Bureau of Statistics on October 31 showed that in October, China's manufacturing purchasing managers' index (PMI) was 51.4%, which has been above the critical point since March, and the overall manufacturing industry has continued to recover.
At present, the shadow of the new crown pneumonia epidemic is still shrouding the global economy. As the world's second largest economy, China's economic start in the fourth quarter was steady and improving, sending positive signals, injecting confidence and hope into the recovery of the world economy. Foreign media quickly captured this economic warm current and pushed this good news to the international public opinion field.
"Manufacturing is returning to pre-epidemic levels"
PMI is known as a barometer for evaluating economic changes. It is composed of five big data such as order quantity, production, employees, distribution, and inventory, etc., statistically weighted.
The US Business Insider reported on November 2 that PMI is a common indicator for monitoring economic operation. It is generally believed that PMI is less than 45% in an economic downturn, while during economic expansion, PMI is often above 50%. The manufacturing PMI index of in October released by China was 51.4%, indicating that China's economy is developing towards steady growth.
In addition to the official data, a private agency's China PMI index in October has also attracted widespread attention from foreign media.
According to Reuters on November 2, supply and demand have improved simultaneously, driving the Chinese economy to continue to be positive. According to data jointly released by Caixin and Markit on November 2, China's PMI rose to 53.6 in October after seasonal adjustments, higher than the median estimate of 53 in Reuters' survey, and the highest level since February 2011. The new order index has accelerated significantly, and companies are willing to take the initiative to replenish inventory.
reported that as domestic demand continues to expand, China's economy is recovering rapidly from the negative impact of the new crown pneumonia epidemic. At the same time, the continued expansion of PMI means that China's manufacturing industry is gradually returning to its pre-epidemic level.
American Consumer News and Business Channel (CNBC) analyzed that the reason why there is a certain gap between the two versions of the PMI index is because in the official survey, large state-owned enterprises account for a large proportion, while in the PMI index surveyed by private institutions, private small and medium-sized enterprises account for a larger proportion. This means that China's domestic manufacturing market is more dynamic today. According to data released by Caixin, China's economy continues to improve in the industrial field and has achieved positive growth for six consecutive months. Operators of various factory and mining enterprises have also doubled their confidence in the future production and operation of the enterprises, reaching the highest level in several years.
According to the British "Independent" website, Bill Adams of the PNC Financial Services Group in the United States said in a report: "Manufacturing is leading China's economic recovery."
"China is the biggest exception among the major global markets hit by the epidemic this year." The Spanish "National" website published a report titled "China Wins the Global Economic Competition" saying that China's GDP curve has achieved a long-awaited V-shaped recovery, and is currently far ahead of other countries in the world.
"The key is to quickly control the epidemic."
The British Markit Market Research Company issued a press release on November 2 pointed out that what supports the increase in PMI is the total number of new business. The overall new business volume has accelerated significantly during the month, setting the strongest growth rate since November 2010. In addition, in order to meet the growth of production and operation demand, manufacturers have increased their procurement accordingly, with a considerable increase. Procurement inventory also increased accordingly, although the growth rate was small, it was the highest since July 2016. On the other hand, the finished product inventory has seen a slight decline due to the need to deliver orders to customers.
"Wall Street Journal " reported that the support measures introduced by the Chinese government have boosted the manufacturing industry, and international market demand has rebounded partially. With the launch of consumption promotion activities in various places, the eight-day National Day and Mid-Autumn Festival holidays have further boosted national consumption expenditure.
The Spanish Economist website published an article on October 31, saying that Germany's Allianz Research Company pointed out that China's exports have unexpectedly grown this year, and the trade balance has obviously made positive contributions to economic growth.
"Economic growth reflects the achievements made by China in epidemic prevention and control through strict isolation measures and large-scale tracking and testing of the population, and is also the result of the Chinese government taking a number of measures to restore the good operation of the economy." The Spanish "National" website reported that the key to China's economic recovery lies in the rapid control of the epidemic. After the outbreak, the Chinese government took strict prevention and control and isolation measures. For other countries, this was unimaginable at the time. In addition, to inject new vitality into the sluggish economy, the Chinese government has introduced a series of measures to support production.
Japanese Kyodo News website published an article on November 2 saying that in the Pearl River Delta region of China, known as the "world factory", the operation methods of enterprises have undergone significant changes after experiencing the epidemic. "All employees must wear masks." This is the unanimous reply from the heads of Japanese companies who set up factories in Guangzhou, Foshan , Shenzhen, Dongguan and other cities.
report also pointed out that due to the impact of the new crown pneumonia epidemic, many companies' operations are unsustainable. To this end, some local governments have provided subsidies for enterprises. For example, an electronic parts manufacturing factory in Foshan received a "resumption of work" from the local government. It is reported that the applicant company can receive a one-time financial subsidy of RMB 50,000. In addition, some local governments have also reduced the water and electricity bills of enterprises. Thanks to this measure, Guangzhou Panasonic Air Conditioning Company has reduced operating costs by 5%-6%.
"Accelerate the process of world economic recovery"
France's Le Figaro reported that with the strong improvement of the overall market conditions, Chinese manufacturers' confidence in the output outlook for the next 12 months has increased, and optimism has risen to the highest point after August 2014. It is generally believed that the negative impact of the new crown pneumonia epidemic on 2021 will weaken, and the global economic environment will improve.
Senior economist at Westpac Australia said: "Basic details show that China is entering a new stage of growth will be strong and resilient." Analysts at Commonwealth Bank of Australia said: "Among major commodity consumer countries, China remains the only country with industrial production higher than pre-pandemic levels."
China's manufacturing industry rebounded strongly, boosting global confidence.
"China's economic recovery is quite fast." Julian Evans Pritchard, an analyst at Capita International Macroeconomic Consulting Company in the UK, said, "Due to the rapid development of the labor market, consumers regain confidence, and fiscal stimulus remains. We believe that China's GDP will return to the road before the epidemic by the end of the year, faster than any other large economy."
China's economic recovery has expanded from the industrial field to the consumption field, injecting greater impetus into boosting world total demand.
According to the German Business Daily, in the third quarter of this year, Mercedes-Benz's sales in China increased by more than 23% year-on-year, and its profits accounted for more than 1/3 of the total profit of the company; BMW 's sales in China increased by 30% year-on-year; Audi achieved its best performance since entering the Chinese market 32 years ago.
According to Japan's Yomiuri Shimbun, if China's economy continues to recover, not only the performance of foreign companies entering the Chinese market is expected to improve, but also accelerate the recovery of the world economy.
According to the US Consumer News and Business Channel website, Southeast Asian countries are likely to benefit from China's economic rebound, as China accounts for the "largest share" of exports in the region.
Reuters reported that with the rise of China's economy, Asia has begun to see signs of economic recovery. Japan also breathed a sigh of relief from the early recovery of China's economy. As of September this year, Japan's exports to China soared by 14%, the largest increase in more than two years, driven by strong demand for China's non-ferrous metals, chip manufacturing equipment and automobiles.
Singapore UOB economist Quan Dejian said: "China's economy is returning to normal, which is a good sign for investor confidence." (Reporter Jia Pingfan)
"People's Daily Overseas Edition" (November 9, 2020, Edition 10)
