Commentary
BEIJING – While many Western observers pit health against wealth in fighting the epidemic, assuming that one must come at the expense of the other, China holds a philosophy that protecting the two during a pandemic is by no means a zero-sum game.
On the one hand, the country is trying its best to make the anti-virus approach ever more scientifically sound, targeted and effective. On the other hand, it extends sophisticated policy support to minimize the impact of the epidemic on economic and social development.
The work has proven pragmatic and effective over the past years. This is why the Chinese leadership has repeatedly driven home a crystal-clear message – the country’s dynamic zero-COVID policy will stay in place.
In the latest COVID-19 resurgence, China’s governing capabilities and efficiency should not be underestimated either.
As China is sparing no efforts to tame the resurging epidemic, a sweeping policy package unveiled in late May has been implemented in most areas of the country to help stabilize the economy. Positive signs have already come.
Take logistics as an example. The logistics performance index, which tracks business volume, new orders, employment, inventory turnovers, and equipment utility rates in the sector, dipped to 43.8 percent in April when multiple areas including Shanghai were in the depth of the epidemic.
By May, however, logistics has become smoother on roads and the backlogs of goods have been gradually cleared at ports, and the index jumped 5.5 percentage points to 49.3 percent.
As mobility improves, the production capacity is recovering as well. Tesla, for example, is working at full capacity in Shanghai, where more than 40,000 cars have rolled off its production line since April 19 when the production began to resume.
China takes a dialectical view of crisis and opportunity, holding that danger always comes with opportunities. The process of coping with the economic challenges amid Omicron variant infections also offers opportunities to boost the country’s industrial upgrade.
Taking this into consideration, the country started early construction for infrastructure projects related to 5G and industrial internet, and accelerated energy-saving and carbon-reducing transformation in key fields.
Global investors have cast votes of confidence in China. Foreign capital inflows into the country’s stock markets flipped back to net inflow in April from net outflow in March, and further expanded in May, a nod to China’s efficiency in coordinating epidemic response and economic growth.
The World Bank forecast in its June report that China’s growth momentum is expected to rebound in the second half of 2022, helped by fiscal stimulus, monetary easing, and other measures to mitigate the economic downturn. – Xinhua
