By Fu Lihua

China's economy continued to recover steadily in the third quarter of 2021

October 26, 2021 - 21:21

TEHRAN - According to the data recently released by China's National Bureau of statistics, China's GDP increased by 9.8% year-on-year in the first three quarters of 2021, with an average growth rate of 5.2% in two years. The economy continued to recover and improve steadily, and performed within a reasonable range, showing strong toughness and great potential. China's economic situation in the third quarter has attracted worldwide attention, and many Iranian media and people are also very interested in learning more about it, I would like to make a few comments on this aspect.

Ms. Fu Lihua is the Charge d'Affaires of the Chinese Embassy in Iran.

First, the sustained and stable recovery of China's economy is attributable to China's comprehensive coordination of epidemic response and economic and social development. All regions and sectors in China adhered to the general tone of seeking progress while maintaining stability ensured ‘stability on the six fronts’ and ‘security in the six areas’ in accordance with the requirements of grounding their works in this new stage of development, fully and faithfully applying the new development paradigm, fostering a new pattern of development, and promoting high-quality development. As a result, China's economy continued to recover and performed steadily in the third quarter. The agricultural production situation was good, and the harvest was a foregone conclusion. The production in industry and service sectors increased, and the supply of important livelihood goods was sufficient. The supply and demand of the consumer market was basically balanced, thus the price remained stable on the whole. It can be said that the overall performance of China's economy is within a reasonable range, showing strong toughness and great potential, which provides strong driving forces for the world economic recovery.

Second, China's economic growth in the third quarter was rich in connotation and full of highlights. First, the consumer price index was at a low level. From January to September, CPI increased by 0.6% year-on-year, which was lower than the expected target of about 3%. The prices of goods related to peoples' livelihood decreased steadily, and the food prices decreased by 1.6% year-on-year. Second, the employment situation was generally stable. From January to September, the surveyed urban unemployment rate was 5.2% in average, lower than the expected target of 5.5%. 10.45 million new urban jobs were created, and the youth unemployment rate decreased for two consecutive months. Third, there was steady progress in the development of industry.

From January to August, the added value and the investment of high-tech manufacturing industry increased by 13.1% and 17.7% respectively on average in two years. Fourth, foreign trade and foreign investment increased rapidly. 

The import and export of goods increased by 22.7% from January to September. The actual use of foreign capital increased by 22.3% from January to August, and the foreign exchange reserves remained above $3.2 trillion for five consecutive months. Fifth, domestic demand continued to recover. From January to August, the manufacturing investment increased by an average of 3.3% in two years, and the private investment increased by an average of 3.9% in two years, an increase of 0.2% and 0.5% respectively compared with that of January to July. Sixth, the momentum of innovation and entrepreneurship was good. According to the ranking of the global innovation index released by the World Intellectual Property Organization recently, China rose by 2 places and rank 12th globally.

The total number of market participants was about 150 million, and the overall activity rate was stable at about 70%. Seventh, market vitality increased. From January to August, the added value of medium-sized, small and micro industrial enterprises increased by 16.3% and 14.1% respectively, and the total profits of industrial enterprises above designated size increased by an average of 19.5% in two years. Eighth, the overall financing cost decreased steadily. From January to August, the corporate loan rate was 4.63% which was 0.13% lower than last year.

Third, the steady and orderly advancement of key tasks has provided strong driving forces for China's economic development. First, we improved macro regulation. We adhered to interval regulation, refrained from adopting a deluge of strong stimulus policies, strengthened the linkage of fiscal, financial and employment policies, improved the mechanism of fiscal and monetary policies, and maintained the continuity and stability of our policies. Second, we adhered to the policy of giving priority to employment. The 14th five-year plan for employment promotion was formulated and promulgated to promote market-oriented employment, provide assistance to key groups such as college graduates and migrant workers and people with difficulties, encourage entrepreneurship-driven employment, and ensure people's income and basic livelihoods through employment. Third, we focused on helping market participants to solve difficulties.

The Chinese government formulated and promulgated The Regulations of the People's Republic of China on the Administration of the Registration of Market Entities, reduced the reserve requirements to guide financial institutions to make good use of the funds, increased the amount of re-loans to 300 billion yuan designated for small business, and encouraged financial institutions to provide loans to enterprises in industries seriously affected by the epidemic. Fourth, through reform, we stimulated the vitality of market participants. We deepened the reform to ‘streamline administration and delegate power, improve regulation and upgrade services,’ carried out anti-monopoly actions, strengthened the protection of workers' rights and interests in new areas of employment, established monetary policy tools to support carbon emission reduction, and promoted green and low-carbon development. Fifth, we continued to expand and raise the level of opening up.

We comprehensively coordinated port epidemic response and the promotion of international trade, deepened the reform of cross-border trade facilitation, deepened the implementation of the foreign investment law and its implementation regulations, and accelerated the preparation for the entry into force of RCEP. Sixth, continued to ensure and improve people's livelihoods. We paid close attention to epidemic response, ensured energy supply, continued to implement the basic livelihoods assurance mechanism, accelerated the development of affordable rental housing, optimized Fertility Policies to promote the long-term balanced development of the population, and further promoted the efficiency and convenience of medical insurance services.

The sustained and stable recovery of China's economy has provided strong driving forces for the recovery of the world economy. Despite the impact of the epidemic on the global industrial chains, supply chains and trade, China has continued to consolidate and expand the achievements of epidemic response and economic and social development, which has played a vital role in alleviating global supply pressure and improving the well-being of consumers in various countries. At the same time, guided by the principles of openness, cooperation, unity and win-win cooperation, China will unswervingly expand opening-up in all respects so as to make the Chinese market a market for the world and share the opportunities in China with the world. All countries around the world, including Iran, are welcomed to benefit from China's economic development, promote high-quality Belt and Road cooperation through greater openness and cooperation in trade, investment, industry, and other fields, and collectively build a community with a shared future for mankind.

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