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China's economic fundamentals unharmed by pandemic

Updated: Jul 17,2020 19:41    Xinhua

BEIJING — China's economy will maintain growth momentum as the country's economic fundamentals were unscathed by the COVID-19 fallout, said the top economic planner on July 17.

The Chinese economy is changing for the better on monthly basis since the second quarter (Q2) of this year amid positive signs like warming production and demand, showcasing outstanding resilience against external impact, Yan Pengcheng, an official with the National Development and Reform Commission, told a press conference.

The country's gross domestic product grew 3.2 percent in Q2, reversing the 6.8-percent contraction in Q1, official data showed.

On top of strict COVID-19 control that had generally stemmed domestic transmission within three months, China has taken a series of measures to protect companies, stabilize employment and expand demand against pandemic shocks, which helped shore up economic fundamentals, said Yan.

The country has also seen pent-up consumption demand being unleashed in Q2, as well as the advent and growth of startups in emerging sectors like online education, teleworking and smart manufacturing.

Adding to continued steam for economic recovery, market confidence improved as evidenced by the fact that both manufacturing and non-manufacturing purchasing managers' index readings remained in the expansion zone for four consecutive months, while economically heavyweight regions across China have reported recovering performance, he said.

However, difficulties remain for companies and employment as the spreading pandemic further complicates global economy and trade, while some domestic sectors have yet to fully restore operation to pre-pandemic levels, said Yan.

The country has vowed to increase support for companies, spur consumption, step up effective and targeted investment, as well as deepen reforms to tackle such challenges, he said.