China was the first country to announce the explosion of the covid-19 pandemic. However, it has taken the most stringent control measures in the world and is working on restarting the economy ahead of the rest of the global community. Furthermore, various areas across the country have resumed work and have reopened their businesses. As at April 14, the average operation of industrial enterprises has reached 99% while workers are being reinstated and had reached 94%. In summary, the entire economic development is returning to the rightful growth track.
To hedge against the economic downturn and to revive the economy, the Chinese government has implemented a strategy of actively expanding domestic demand . Specifically, a more proactive fiscal policy is being implemented, expanding the issuance of special national bonds and local government debt, accelerating the process of implementation tax and fee reduction policies during the pandemic with aview to boosting Foreign Direct Investments.
Furthermore, China is trying to create a strong domestic consumer market to stimulate and enhance consumption of goods and services. While building smart, comprehensive ecosystem and consumer networks covering both the urban and the rural areas to promote newwe models of consumption. The seven major areas of investment China is focusing on are energy projects;; transportation infrastructure; agriculture, water conservancy; forestry, environmental protections; livelihood services; logistics facilities; municipal and industrial park infrastructure. China is also accelerating the construction of five (5) new types of infrastructure for 5G networks, artificial intelligence,data centres, and Internet of Things,etc.
China has particularly, prioritized pro-employment policies to create the world’s largest employment growth. This policies include increasing the average weekly working hours per capita (working at home and online) while increasing labour compensation.
China is expecting positive growth in the second quarter of 2020 and to recover its growth rate of more than 6% in the third and fourth quarters..Through implementing these measures and more, China will continue to be the economic engine for global growth and will continue to drive the world economy out of recession.