At present, the global economic recovery is generally weak, and the pace of global trade and investment is slowing down. The international environment becomes more severe and complicated, and the economies of all countries around the world are facing various difficulties and challenges. The economic situation in China is of particular concern to people from all walks of life. The spokesperson of the Chinese Embassy in Singapore hereby provides a briefing on the Chinese economy from a comprehensive and long-term perspective, with relevant data released by the National Bureau of Statistics of China.

Firstly, in the first half of this year, China’s Gross Domestic Product (GDP) grew by 5.5% year-on-year, outperforming other major economies in the world. The International Monetary Fund (IMF) released its latest World Economic Outlook report in July, projecting a growth of 5.2% for China’s economy, which is expected to contribute a third of global growth this year.  

Secondly, through a closer look at the data, China's economy in the first half of the year can be understood from the following four perspectives:

(1) Domestic demand continued to expand. Consumption has been driving economic growth, with domestic demand contributing 110.8% to China's economic growth in the first half of the year, an increase of 59.4% year-on-year. The contribution of final consumption reached 77.2%, an increase of 46.4% year-on-year. From January to July, retail sales in the service sector increased by 20.3% year-on-year. Investment in key areas has maintained rapid growth, with the investment in infrastructure and manufacturing increasing by 6.8% and 5.7% respectively, both faster than the overall investment growth rate.

(2) Industrial upgrading continued. From January to July, the investment in high-tech industries grew by 11.5% year-on-year, notably faster than the overall investment growth rate. The investment in electronic and communication equipment manufacturing, as well as in services for transforming scientific and technological achievements, maintained rapid growth. The added value of equipment manufacturing increased by 6.1% year-on-year, continuing to outpace the overall growth of industrial enterprises above designated size. The production index of information transmission, software, and information technology services grew by 11.9% year-on-year.

(3) Innovation and green development showed promising momentum. The impetus of innovation-driven development continued to strengthen, with increased investment in technology and rapid growth in high-tech manufacturing. From January to July, the investment in scientific research and technology services increased by 23.1% year-on-year. In July, the added value of intelligent consumer device manufacturing grew by 15.3% year-on-year, while the production of new energy vehicles and solar cells grew by 24.9% and 65.1% respectively.

(4) Resilience in foreign trade continued to manifest as a strong advantage. China’s industrial system is comprehensive with well-developed supporting industries and resilient manufacturing supply chains; its competitiveness in the international market for goods exports remained strong. Despite the impact of shrinking external demand, China’s exports maintained a relatively stable market share in the international market during the first seven months of this year. In the first half of the year, the total export value of electric vehicles, lithium-ion batteries, and solar cells, known as the "new three" industries, grew by 61.6% year-on-year. From January to July, the imports and exports by private enterprises increased by 6.7% year-on-year, which was remarkably faster than the overall growth rate of total imports and exports, accounting for 52.9% of the total foreign trade value.

Thirdly, the Chinese government is taking targeted and prudent measures to address risks and challenges related to fluctuations in the real estate market and youth employment.

(1) Currently, the Chinese real estate market is in a period of adjustment, with some housing enterprises facing operational difficulties. In particular, the credit risks of some giant housing companies are being exposed, affecting market expectations. However, these issues are temporary. As the market adjustment mechanism gradually kicks in and the economic recovery picks up, real estate risks, the investment willingness of housing enterprises, and residential housing consumption are expected to gradually dissolve, recover, and improve.

(2) Since the beginning of this year, as the economy continues to rebound and stable employment policies take effect, the overall employment situation has improved, and the nationwide urban surveyed unemployment rate is on a downward trend. From the supply end, the urban labor force is gradually expanding, and the number of rural-urban migrant workers has increased compared to the same period last year. From the demand end, the service industry has absorbed more labor; the accommodation and catering industry, transportation industry, tourism industry, etc. have been playing a positive role, creating favorable conditions for improving employment. Data in July shows that employment is stable. Due to seasonal factors, the nationwide urban surveyed unemployment rate in July was 5.3%, a slight increase of 0.1% compared to the previous month, but lower than the same period last year, and equivalent to the same period in 2019 before the epidemic. The unemployment rate of rural migrant workers was 4.8%, a decrease of 0.1 % from the previous month, indicating a generally positive trend in employment for this group in the labor force. Unemployment rate data for specific age groups, including youth, is temporarily suspended from publication. This data will be resumed in a timely manner once the relevant statistical methods and systems are further improved. The temporary suspension of age-specific unemployment rate data does not affect the results of overall unemployment rate statistical survey, and the overall unemployment rate can still reflect the employment situation in the economy.

Fourthly, although the current Chinese economy faces certain challenges, the resilience, great potential, and great vitality of the Chinese economy, and the fundamentals of long-term improvement, remain unchanged. Recently, China has introduced a series of targeted and substantial measures, including efforts to restore and expand consumption, promote the development and growth of the private economy, and increase the attraction of foreign investment. The effects of these policies are gradually becoming evident. We have full confidence to sustain healthy economic development, and to achieve effective improvements in quality and reasonable growth in quantity.