Chinese economy sees hard-won recovery in H1 amid global downturn

China's economic performance in the first half (H1) of 2023 showed signs of recovery in the face of various challenges, guest speakers told the China Economic Roundtable hosted by Xinhua News Agency.

China's gross domestic product (GDP) grew 5.5 percent year on year in the first half of 2023, data from the National Bureau of Statistics (NBS) showed Monday.

Fu Linghui, the NBS spokesperson, said the economic growth had significantly accelerated compared with that of last year, which is quite remarkable given the global economic fluctuations and downturns.

In the January-June period, production supply of agriculture and industry continued to increase, the service industry and consumption grew rapidly, and high-quality development made steady progress, he said.

Since April, international organizations and institutions, such as the United Nations, the World Bank, and the OECD, have raised their expectations for China's economic growth this year, reflecting the world's confidence in China's economic development prospects.

"Facing sluggish global economic growth and a slowdown in global trade, China's economic growth in H1 saw an increased contribution of domestic demand to the GDP compared with the same period last year and the entire 2022," said Li Hui, a senior official with the National Development and Reform Commission.

She noted that the growth rate of industrial added value of the equipment manufacturing industry, above the designated size, had exceeded the overall industrial growth rate. The production of solar cells, new energy vehicles, and charging piles also surged.

Investment in high-tech industries and private investment in infrastructure and manufacturing all exhibited faster growth rates than that of the total investment, Li said, adding that these highlights all prove China's high-quality economic development.

Globally, world economic growth continues to slow down and inflation pressures remain high, leading to divergent economic trends among countries.

Liu Yuanchun, president of Shanghai University of Finance and Economics, said that China's H1 economic performance undoubtedly represents an example of high-speed growth among major economies.

According to Liu, it is essential to understand this round of recovery from a global and historical perspective, particularly taking the pandemic, disasters and major changes into consideration.

"The recovery in the post-pandemic era is different from the normal and cyclical recoveries we've seen in the past," he said, noting this round of recovery begins from society and transactions, and then moves on to profit and balance sheet, which will be a long process involving fluctuations.

Li agreed that despite adverse effects resulting from global changes, China's economy has witnessed a rebound, with stable prices and financial stability.