COVID-19 controls won't shake China's economic fundamentals

The naysayers would have you believe that the strict COVID-19 control measures in the economic hub of Shanghai will drag down the country's economic growth, hurt trade, and deter investment.

The argument that epidemic control comes at the cost of economic fundamentals is not only unsubstantiated but underestimates the potential and resilience of the Chinese economy.

There is no denying that Shanghai is undergoing hardship due to the recent resurgence of the virus, but it would be a mistake to assume that Shanghai alone represents China's overall economic landscape.

China has solid economic fundamentals able to withstand headwinds, which will only be strengthened once the Omicron variant is brought under control.

The cynics need to look no further than foreign trade to see this vitality in full play. The country's total imports and exports in the first quarter expanded 10.7 percent year on year to 9.42 trillion yuan (about 1.47 trillion US dollars), the seventh consecutive quarter of growth.

Robust foreign direct investment (FDI) offers further evidence. FDI into the Chinese mainland during the first three months expanded 25.6 percent year on year to 379.87 billion yuan, with investment in high-tech industries logging an increase of 52.9 percent.

Moreover, China has a wide array of tools at its disposal to offset previous losses, build up momentum for future development, and maintain stable economic growth.

A State Council executive meeting last week stressed the importance of implementing prudent monetary policy to maintain reasonably sufficient liquidity; explore financial measures to bolster consumption and investment; and channel financing toward key fields and weak links.

On Wednesday, Premier Li Keqiang highlighted measures to keep the economy stable and improve people's livelihoods, which included boosting consumption and increasing export tax rebates.

China has stayed true to its "dynamic zero-COVID approach" throughout its battle with the elusive Omicron variant. In March, Changchun, capital of Jilin Province in northeast China, was subject to stringent control measures under the strategy. Despite tens of thousands of infections, it successfully cut off all transmission chains out of its quarantine areas.

China was the first major economy to recover from the initial impact of COVID-19 in 2020 thanks to its swift and tough response, and economic resilience continued throughout 2021 despite more pervasive strains wreaking havoc worldwide.

Perhaps the critics would do well to look closer at the successes of the past years before they underestimate China's capacity to balance epidemic control and economic stability.