China's economic performance in the second quarter of 2024 has demonstrated notable resilience, with improved industrial production and a surge in export performance, according to a recent report by the China Finance 40 Forum (CF40).
The CF40 macro policy report highlighted that while the global manufacturing sector is on a path to recovery, inflationary pressures remain a concern. Despite these challenges, China achieved historic highs in both import and export scales, along with a significant trade surplus in the first half of the year.
Exports saw a cumulative year-on-year growth of 3.6 percent in the first half of 2024, marking an increase of 7.1 percentage points compared to the same period last year. This growth underscores China's strong position in global trade, even as the nation grapples with insufficient domestic demand.
Addressing the imbalance, the report emphasized the need for a more balanced trade volume, highlighting insufficient domestic demand as a key challenge. To tackle medium- and long-term reform issues, the Chinese government is focusing on improving the economic sphere, optimizing resource allocation, and enhancing productivity—core objectives of structural reform.
These topics were central to discussions during the recently concluded third plenary session of the 20th Central Committee of the Communist Party of China. The Communique from the session called for deeper foreign trade structural reform and better coordination of trade policies with fiscal, tax, financial, and industrial policies.
The session also proposed the creation of comprehensive systems and policies aimed at strengthening China's position as a leading trading nation. Additionally, it emphasized the need to integrate domestic and foreign trade more effectively.
CF40 noted that the government has introduced practical and feasible policy measures targeting specific economic issues, further supporting China's goal of becoming a robust trading powerhouse.
Reference(s):
CF40 highlights strengths in China's economy amid challenges
cgtn.com
