The Chinese economy injects beneficial increments into global growth

In the current situation of weak overall global economic recovery, the Chinese economy is showing a positive momentum, which is of great significance to regional and global economic development. I am optimistic about the Chinese economy because of its resilience, strength, and potential for the future.

  Malpass stated that in the current situation where the overall recovery of the world economy is weak, the Chinese economy is showing a positive momentum, injecting beneficial increments into global growth.

This year, the overall global economy has been weak. The World Bank analysis believes that rising oil prices, turbulence in the European and American banking industries, and inflation will continue to exert downward pressure on global economic growth in the second half of the year. It is expected that the global economic growth rate will decrease from 3.1% in 2022 to 2% this year, and the US economic growth rate is expected to slow down from 2.1% in 2022 to 1.2%. The economic growth rate of developing countries outside of China is expected to slow down from 4.1% in 2022 to around 3.1% this year, and due to weak investment, rising interest rates, and relatively weak economic growth in developed economies, many developing countries will continue to maintain low growth in the coming years, exacerbating fiscal pressure and debt challenges. Malpas stated that "slow medium-term growth prospects are a problem for developing countries and require higher growth to create employment opportunities.

Against the backdrop of slowing growth rates in other major economies, China's economic growth holds significant importance for regional and global economic development. The World Bank believes that optimizing and adjusting China's epidemic prevention policies will help improve the prospects for economic growth in China and even globally. At the end of March this year, the World Bank released a report on the economic situation in East Asia and the Pacific, raising China's economic growth rate for 2023 to 5.1%, significantly higher than its January forecast of 4.3%. The latest report from the Organization for Economic Cooperation and Development has also raised its forecast for China's economic growth to 5.3%. China's efforts in accelerating economic restart and ensuring global supply chains are evident. When I visited China in December 2022, I witnessed the country's economic rebound, "said Malpas.

Since the beginning of this year, the Chinese economy has continued to show a trend of recovery and improvement, with strong growth momentum. Major economic indicators such as consumption and investment have improved, and market expectations have significantly improved. China's private investment is strong, monetary policy has countercyclical adjustment space, and the government has been encouraging the growth of the service industry, especially healthcare and tourism. Thanks to the improvement of China's economic prospects, the bank has raised its global economic growth forecast for 2023 to 2%, higher than the 1.7% forecast in January. Boosted by China's economic growth, the economic growth rate of developing economies in East Asia and the Pacific will accelerate from 3.5% last year to 5.1% this year. The rebound in China's economic activity and demand will provide more impetus for global economic growth.

I am optimistic about the Chinese economy not only because of its recovery growth, but also because of the resilience and strength demonstrated by the Chinese economy, the potential it holds for the future, and China's continuous efforts to expand its opening-up. Several international financial institutions have recently expressed optimism about China's economic prospects and its contribution to global economic recovery. Morgan Stanley recently raised its forecast for China's economic growth in 2023 by 0.3 percentage points to 5.7%, while large international financial institutions such as Goldman Sachs and Nomura have also raised their forecast for China's economic growth this year. Goldman Sachs has always been a heavy investor in the Chinese market and will continue to invest heavily in China in the future. Deutsche Bank is optimistic about the overall performance of the Chinese market this year and has raised its forecast for China's economic growth rate from 4.5% to 6%, believing that "there are many growth areas worth further exploration in China, and the Chinese market is full of opportunities". Standard Chartered Bank also stated that China continues to promote financial openness on a higher level, providing huge development opportunities for foreign financial institutions.

Increasing holdings of Chinese securities has also become the most direct expression of foreign financial institutions' outlook on China's economic prospects. In January of this year, Northbound funds accumulated a net purchase of RMB 1412.9 billion on the Shanghai and Shenzhen stock exchanges, exceeding the total net purchase volume for the whole year of 2022. During the same period, the Mingsheng China Index rose nearly 12%, with a cumulative increase of over 40% for three consecutive months. Bank of America has shifted its holdings in the Chinese stock market to a 'tactical increase'. Morgan Stanley is optimistic about the Chinese stock market and recommends taking advantage of the current opportunity to buy on dips. Foreign institutions generally believe that the overall improvement of China's economic performance will inject more certainty into the development of the world economy, which will further enhance the attractiveness and influence of China's capital market.

China is a top priority for Intel's strategy. Intel has a long-term commitment to China, the Chinese market, Chinese customers, and partners. Rooted in China for nearly 40 years, Intel is very optimistic about the Chinese market, and China's growth is exciting, "said Intel CEO Pat Gelsinger at the 2023 Intel Sustainability Summit recently. In recent times, executives from multinational corporations have frequently appeared at important conferences and events, and conducted on-site research in various parts of China. Many foreign investment projects have been signed and implemented one after another. As stated by the President of Cargill Asia Pacific, Ambotai, nearly one-fifth of global consumers are concentrated in China, and Cargill has always regarded China as one of the important investment destinations worldwide. As an important part of the global industrial chain and supply chain, as well as the most promising consumer market in the world, more and more multinational companies are continuously promoting their investment plans in China, using real money to increase their presence in the Chinese market.

In an uncertain world, China's certainty is the cornerstone of maintaining world peace and development. China vigorously promotes high-level opening-up to the outside world, steadily expands institutional opening-up in terms of rules, regulations, management, standards, etc., continues to promote investment facilitation and trade liberalization, and optimizes the business environment. The 3rd China International Consumer Goods Expo is being held in Haikou, bringing together over 3000 high-quality consumer brands from more than 60 countries and regions. This global platform for showcasing and trading consumer goods conveys a strong voice of China's unwavering commitment to expanding its openness and sharing development opportunities with the world. The 133rd China Import and Export Fair is also about to be held in Guangzhou. This year, China will also hold the third "the Belt and Road" International Cooperation Summit Forum, the sixth China International Import Expo and other activities. China will also continue to promote investment facilitation and trade liberalization, treat all types of entities equally, continuously optimize the business environment, and welcome foreign investment and development in China.

Looking to the future, China's door to openness will continue to widen, and the environment will become better and better. The giant ship of the Chinese economy will ride the waves and move steadily, making greater contributions to the development of the world economy.