China’s economy remains stable in October, showing resilience amid challenges
Published: Nov 15, 2021 01:12 PM
Lujiazui Photo:VCG

Lujiazui Photo:VCG

China's economy recovered steadily in October, boosted by the better-than-expected performance in the retail sector and industrial production growth, data from the National Bureau of Statistics showed on Monday. Analysts stressed that China's overall economic performance represented the country's strong economic resilience despite facing multiple challenges. 

In October, the country's industrial output picked up, increasing by 3.5 percent year-on-year, compared with 3.1 percent in September, while industrial added value from January to October increased 10.9 percent on a yearly basis. 

The retail sales of consumer goods have also increased in October, with the total amount reaching 4.05 trillion yuan ($630 billion), up 4.9 percent year-on-year and stood 0.5 percentage points higher than the previous month, while the total amount from January to October reached 35.85 trillion yuan, an increase of 14.9 percent compared with 2020. 

"Although China was affected by sporadic COVID-19 flare-ups, energy shortages and extreme weather in October, the country's economy remained relatively resilient," Cong Yi, a professor from the Tianjin University of Finance and Economics, told the Global Times on Monday

Cong noted that China has a large population, and that to date 400 million people have reached a middle-income level, so the consumption levels of Chinese residents have remained stable; meanwhile, new types of consumption continue to emerge, back with stable supply and demand. 

The reading measuring the nation's total investment in fixed-assets from January to October increased 6.1 percent on a yearly basis, amounting 44.58 trillion yuan, of which the investment in real estate developments grew by 7.2 percent. 

Fu Linghui, a spokesperson from the NBS, also said on Monday that signs which may seem like stagflation are the result of short-term factors such as the surge in international commodity prices which have tightened supply and increased production prices for some industries.

The total imports and exports of goods also grew rapidly and the country's overall trade structure continuing to improve in October, with total trade value reaching 3.34 trillion yuan, an increase of 17.8 percent year-on-year, with exports and imports growing by 20.3 percent and 14.5 percent respectively. 

Cong said that China's exports have grown significantly on the back of an economy-wide industrial upgrade, with the development of high-tech manufacturing industry also showing great momentum.

Moreover, the country's employment remained stable, with a total of 11.33 million new jobs created in nationwide from January to October, completing the annual target ahead of schedule. The surveyed urban unemployment rate stood at 4.9 percent in October which was unchanged from September and down 0.4 percentage points from the same period in 2020. 

Cong noted that China's economy will maintain a stable and progressive trend in the fourth quarter, and that overall growth will not change significantly.

"The proportion of new energy sources will eye significant growth. For example, the value-added of high-tech manufacturing industry increased by 14.7 percent year-on-year in October, and the output of new energy vehicles increased by 127.9 percent, compared with 2020, showing that China has ramped up efforts to adjust its industrial structure," said Cong. 

Looking forward, the NBS noted that challenges remain amid a complex and uncertain international environment. 

Moreover, Cong stressed that alongside the pandemic combined with international political and economic volatility, China's real estate market has also raised public concern. The government will further strengthen regulation to ensure the on-time settlement of properties and adhere to the principle of "housing is for living, not for speculation."

Global Times