Despite recent fluctuations in China’s property and A-share stock markets, experts affirm that the Chinese economy continues to demonstrate strong productivity and significant global influence.
Liu Yangsheng, a senior fellow at Taihe Institute, highlighted that the property market is undergoing necessary corrections after two decades of over-leverage and rapid expansion. \"The property market is on the top priority for the Chinese government to address economic issues,\" Liu explained. He noted that the role of the property sector is evolving from generating income for local governments to providing essential housing without the heavy speculation and leverage of the past.
Regarding the stock market, Liu emphasized China’s unparalleled position in global manufacturing. He stated, \"China has the most sophisticated supply chain for manufacturing in the world, producing goods more efficiently and cheaply than anywhere else.\" This efficiency not only bolsters China’s status as a major trading partner for over 120 countries but also supports its role as a manufacturing powerhouse.
Despite challenges such as reduced exports from the U.S. and trade tensions, China is adapting by strengthening regional trade ties, particularly with ASEAN countries. Liu is optimistic about China meeting its GDP target of around 5 percent, citing significant foreign investments from Europe and the Middle East as key factors supporting economic resilience.
Overall, the Chinese economy is poised to continue its trajectory of productivity and innovation, maintaining its crucial role in the global market.
Reference(s):
cgtn.com
