A police officer of immigration inspection checkpoint checks a truck at Dongxing port in Dongxing, south China’s Guangxi Zhuang Autonomous Region, Jan. 8, 2022.(Xinhua/Cao Yiming)
BEIJING, Jan. 9 (Xinhua) — China reached a milestone in 2021 with major achievements made in foreign trade, technological breakthroughs and industrial chain resilience, according to a senior official.
“China has taken a leading position in both economic development and pandemic control worldwide in 2021,” Han Wenxiu, an official with the Central Committee for Financial and Economic Affairs, said in a recent article, highlighting the country’s progress in coordinating pandemic control and economic development.
According to World Bank projections, China’s real gross domestic product (GDP) growth will reach 8 percent in 2021, and its “momentum is expected to pick up, aided by a more supportive fiscal stance.”
Experts also projected that the per capita GDP of China will exceed 12,000 U.S. dollars, close to the measure of a high-income country as classified by the World Bank.
RESILIENCE AGAINST HEADWINDS
The world’s second-biggest economy has staged an impressive rebound from the pandemic-induced slump. The growth rate of major economic indicators stayed within a reasonable range in the past year, as the consumer price index growth and surveyed urban unemployment rate stood at relatively low levels, and more than 12 million new urban jobs were created.
Han stressed that China’s foreign trade gained strong momentum over the past year, as the world’s largest exporter posted a record-high share of global trade, pointing to the strong resilience of the country’s economy.
The latest data from the commerce ministry showed that China’s total imports and exports of goods are expected to reach 6 trillion U.S. dollars in 2021, with the year-on-year growth amounting to approximately 1.3 trillion dollars.
As a pillar for the global supply chain, China-Europe freight trains emerged as another highlight considering their crucial role in enhancing global supply chains, stabilizing consumer prices and helping countries combat COVID-19 outbreaks.
China’s stringent pandemic control measures have also laid a solid foundation for protecting people’s lives while guaranteeing the normal functioning of economic activities. By stringently curbing imported cases and preventing any resurgence of local cases, China has successfully controlled the pandemic, according to Han.
Through efforts to promote widespread vaccination, nearly 2.89 billion COVID-19 vaccine doses have been administered on the Chinese mainland and over 1.21 billion people have been fully vaccinated as of Friday, data from the country’s health authority showed.
RECOVERY AMID UNCERTAINTIES
However, amid volatile domestic and international environments, the Chinese economy is still facing uncertainties such as weakening investment, slower consumption growth, supply chain congestion and shortages of key production factors.
Through the turbulence of 2021, the nation’s economy suffered from an auto production decline caused by semiconductor shortages, growing cost pressures on smaller firms, weaker expectations and hidden risks in the financial sector, Han said.
“We must face the difficulties squarely while staying confident,” Han said, noting that the Chinese economy should make full use of its hallmarks of strong resilience, huge potential and favorable conditions for economic growth to overcome obstacles.
Han urged governments to actively introduce policies that are conducive to economic stability, and remain cautious toward policies that have a contractionary effect.
Stability will be a top priority for the Chinese economy in 2022. At the tone-setting Central Economic Work Conference held last month, Chinese leaders repeatedly stressed “stability” as the top priority for the nation’s economic policies.
“The sustained economic recovery of China stands unchanged, and the fundamentals will remain strong in the long term,” Han stated. “China is totally capable of maintaining steady, sound and sustained economic development.” ■
TORONTO – Canada’s main stock index edged lower in late-morning trading, weighed down by losses in the financial and telecommunications sectors, while U.S. stock markets rose.
The S&P/TSX composite index was down 7.26 points at 23,860.11.
In New York, the Dow Jones industrial average was up 61.00 points at 42,124.36. The S&P 500 index was up 15.70 points at 5,718.25, while the Nasdaq composite was up 27.88 points at 17,976.20.
The Canadian dollar traded for 74.10 cents US compared with 73.72 cents US on Friday.
The November crude oil contract was down eight cents at US$70.92 per barrel and the November natural gas contract was up 12 cents at US$2.84 per mmBTU.
The December gold contract was up US$4.90 at US$2,651.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Sept. 23, 2024.
TORONTO – Canada’s main stock index was essentially unchanged Friday, while U.S. markets were mixed to end the week, with the Dow ekeing out a new record high.
The S&P/TSX composite index closed up 1.28 points at 23,867.55.
In New York, the Dow Jones industrial average was up 38.17 points at 42,063.36. The S&P 500 index was down 11.09 points at 5,702.55, while the Nasdaq composite was down 65.66 points at 17,948.32.
The Canadian dollar traded for 73.72 cents UScompared with 73.73 cents US on Thursday.
The November crude oil contract was down 16 cents at US$71 per barrel and the November natural gas contract was up 12 cents at US$2.72 per mmBTU.
The December gold contract was up US$31.60 at US$2,646.20 an ounceand the December copper contract was down a penny at US$4.34 a pound.
This report by The Canadian Press was first published Sept. 20, 2024.
OTTAWA – Bank of Canada governor Tiff Macklem says there is a lot of uncertainty around how artificial intelligence could affect the economy moving forward, including the labour market and price growth.
In a speech in Toronto at the Economics of Artificial Intelligence Conference, the governor said Friday that the central bank is approaching the issue cautiously to get a better understanding of how AI could affect its job of keeping inflation low and stable.
“Be wary of anyone who claims to know where AI will take us. There is too much uncertainty to be confident,” Macklem said in prepared remarks.
“We don’t know how quickly AI will continue to advance. And we don’t know the timing and extent of its economic and social impacts.”
The governor said AI has the potential of increasing labour productivity, which would raise living standards and grow the economy without boosting inflation.
In the short-term, he said investment in AI is adding to demand and could be inflationary.
However, Macklem also highlighted more pessimistic scenarios, where AI could destroy more jobs than it creates or lead to less competition rather than more.
The governor called on academics and businesses to work together to shed more light on the potential effects of AI on the economy.
“When you enter a dark room, you don’t go charging in. You cautiously feel your way around. And you try to find the light switch. That is what we are doing. What we central bankers need is more light,” he said.
This report by The Canadian Press was first published Sept. 20, 2024.
