22 May 2020
Q1. Virus pandemic is taking its toll on the global economy. And many people are losing jobs. So how is China strategizing to handle the unemployment issues brought about by the pandemic ?
Let me add something to the economic recovery in China....tow sessions where you have the legislatures and national advisors gather together with the government officials to discuss national affairs, usually about economic growth, foreign policy on next five-year plan, etc. I think that a lot of Chinese workers are keeping close eyes on the political event which is the biggest yearly event in China. we will see if the government will lay out the new plan for the Economic growth. In previous years, Chinese Government would set target for economic growth for example like 6 PC or 6.5 pc growth. But for this year the situation is very unusual, people are talking about whether people are asking whether we should be setting the target at all or whether we should set the lower target of, for example, 2pc or 3pc for the entire year of 2020. People will be watching how the Chinese Government is going to introduce the support for the economic growth, to stimulate the economic growth for the next half of this year.
In general, people are looking the next half of the year with optimism.
Q2. That's quite informative and now let's move onto our second question...which is how is China's economy recovering now ?
Concerning the China's economic recovery, we have latest figures released a few days back. The monthly data is encouraging. The industrial production, such as manufacturing sector, utility sector is up by 3.9 per cent. That is very strong compared with March number for example which is a contraction of 1.1 pc. The 3.9 pc growth is also much stronger than the estimate by the economists of 1.5 pc growth in April. In this industrial production sector, we see the strong V-shape recovery. In retail sale, which is mostly about the consumption of spending by the Chinese people. So we are still seeing a drop of 7.5 pc retail sales, which however is stronger than the March figures, which is a drop of 15.8 per cent. So in general, it is recovering and improving in a process of V-shape recovery.
Photo Credit - CGTN