July 16, 2021
China issued its half year economic report yesterday. Prof. Dr. Tang Zhimin, the director of
CASPIM, feels the pulse of the giant and comments on its vital statistics in an interview
with People’s Daily:
In the first quarter (Q1) of 2020 when the country was shrouded under the shadow of
Covid-19 pandemic, China’s economy shrank by 6.8% year on year (YoY). The light of
recovery pieced through in Q2, delivering China to be the only major economies in the
world with a positive GDP growth (2.3%) in 2020. In 2021, the economy expands at
18.3% in Q1, 7.9% in Q2, and 12.3% in the first half year (H1). As the comparable YoY
base for the second half of 2021 is higher when Chinese economy was on the track of
restoration in 2020, the growth rate is expected to descend to around 6% in H2 2021 and
8% annually for year 2021. Never the less, the annual growth rate of 8% still outperforms
the global average of 6%, and 5% of the developed economies.
The total retail sales of consumer goods, which include the retail sales of consumer
goods and revenues from food and beverage services. The figure is ¥17,226 billion in H1
2020, much lower than pre-pandemic H1 2019 (¥19,521 billion). It topped ¥21190 billion
in H1 2021. That is about 5% growth in real term compared with the pre-pandemic level.
On the supply side, investment in the high tech industries expanded faster than the
average. The output surged for high tech products such as new energy car, industrial
robots and IC. These are positive signs for structural adjustment and an economy of “dual
circulation”, driven by external as well as internal demand.