Overseas financial institutions have expressed strong confidence in the prospects of the Chinese mainland’s economy, highlighting the country's high-quality growth efforts that are gradually paying off.
According to the latest data from the National Bureau of Statistics (NBS), the Chinese mainland's GDP expanded by 5 percent year on year in the first half of the year. On a seasonally adjusted basis, GDP grew by 0.7 percent in the second quarter, marking the eighth consecutive quarter of positive growth.
Wu Yibing, head of China for Singapore's state investment company Temasek, noted that the Chinese mainland's comparative advantage now largely stems from research and innovation. "In the past, China's strength in manufacturing was usually attributed to its abundant labor force and high production efficiency," Wu explained.
Value-added industrial output, a key economic indicator, increased by 6 percent year on year in the first half of the year, according to NBS data. The equipment manufacturing sector, which accounts for one-third of overall industrial output, saw a 7.8 percent increase. Additionally, the high-tech manufacturing industry posted a robust growth of 8.7 percent during the same period.
The production of service robots, smartphones, and new energy vehicles surged by 22.8 percent, 11.8 percent, and 34.3 percent respectively in the first six months, underscoring the advancement in high-tech sectors.
A Bloomberg report dated July 16 highlighted that the Chinese mainland's long-term quest for high-quality growth is starting to bear fruit. "Advances in electric vehicles, solar panels, and other high-tech industries have helped keep economic expansion within reach of its targeted pace of around 5 percent," the report stated.
In addition to industrial output and high-end manufacturing, investment and exports are also seen as key strengths of the Chinese mainland's economy. Ji Mo, chief China economist of DBS Group Research, emphasized that large-scale equipment upgrades and the trade-in of consumer goods continue to drive effective investment, aided by the issuance of local government special bonds and ultra-long special treasury bonds.
Data shows that infrastructure construction investment in the Chinese mainland rose by 5.4 percent from the previous year in the January-June period, while manufacturing investment increased by 9.5 percent. The country's net exports of goods and services contributed 0.7 percentage points to GDP growth during the same period.
Liu Jing, chief economist for Greater China at HSBC, pointed out that the Chinese mainland has become increasingly important as a major global supplier of goods and has continued to expand its market share despite trade restriction measures.
Experts from overseas financial institutions acknowledge the accelerated development of new quality productive forces, the continuous release of policy effects, and the recovery of external demand as key support factors for the Chinese mainland's economy. However, they also emphasize the need for further reform and opening up to address challenges such as insufficient effective demand and a complex external environment.
Reference(s):
Foreign financial institutions upbeat on prospects of China's economy
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