Import expo shows China still growth engine for world economy

The ongoing Fourth China International Import Expo in Shanghai, which opened on Friday and will continue till Wednesday, is expected to boost global economic recovery despite the disruptions in the global supply chains due to the COVID-19 pandemic and other risks to the world economy. Especially because the United States, which once led international trade and financial systems, is struggling to overcome myriad problems at home.

Amid the gloom, China has raised hopes of boosting global economic recovery by hosting three major international trade and service fairs for three months in a row: the China International Fair for Trade in Services in Beijing in September, the China Import and Export Fair in Guangzhou in October, and now the Fourth China International Import Expo in Shanghai.

China has also raised global hopes by achieving robust economic growth in the first three quarters－9.8 percent year-on-year－not least because it is the world's second-largest economy and has been a main driver of global growth for the past two decades, and is expected to remain so in the near future. And by being the only major country in the world to realize positive growth last year, China has exhibited the resilience of its economy.

China's political and economic stability and sustainable growth are the biggest contributions to the global economy. China's rising trade, too, is likely to spur the sluggish global economy. According to the General Administration of Customs, China's foreign trade increased about 22.7 percent year-on-year in the first three quarters of this year.

That China has largely contained the pandemic is mainly responsible for its excellent economic and trade performance since last year. This, in addition to its improving business environment at home, has prompted a growing number of foreign investors to invest in the country. In the first three quarters, China attracted about $129.26 billion of foreign direct investment, up 25.2 percent year-on-year.

The growth rate appears even more impressive when compared with the same period in previous years. For example, in the first three quarters of 2018, when the US launched a trade war against China, it was 6.4 percent; in 2019 when Washington sanctioned Chinese high-tech giants including Huawei, it was 2.9 percent; and in 2020 at the height of the pandemic, it was 2.5 percent.

China's achievements also show how effective its emergency response and how strong and dynamic its economy are, all of which can be attributed to the country's preparation and determination to overcome crises and the hard-working Chinese people.

As a defender of free trade, China continues to open up its market, so the rest of the world can share the fruits of its development. In fact, since the launch of reform and opening-up, foreign companies have been making huge profits by trading with or investing in China.

Also, in the first three quarters, industrial enterprises above designated size－those with an annual revenue of more than 20 million yuan ($3.12 million)－have earned more than 6.34 trillion yuan in profits, up 44.7 percent year-on-year. Among them, the profits overseas enterprises made added up to more than 1.69 trillion yuan, up 31.7 percent year-on-year.

Besides, China's rapid advancement in high-tech can also drive the global recovery. At the just-concluded G20 Summit in Rome, China announced its decision to join the Digital Economy Partnership Agreement, which was formed by New Zealand, Singapore and Chile. Given its experience and high-tech innovations, China is well suited to boost the global digital economy and improve its governance.

As a responsible and capable major trading power, China continues to drive global economic growth, and uphold free trade and multilateralism. And the Fourth China International Import Expo will add to its strength and help it to continue playing a leading role in the world economy.

The author is a researcher at the Chinese Academy of International Trade and Economic Cooperation. The views don't necessarily reflect those of China Daily.

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