CG Lin Jing, published on Cape Times, July 27

The National Bureau of Statistics of China recently released the preliminary accounting results of the second quarter (Q2) and the first half year (H1) of 2022: China’sgross domestic product (GDP) for H1 2022 was RMB 562,642 billion, up by 2.5 percent year-on-year (YOY) at constant prices; of this, GDP in Q2 was RMB 292,464.4 billion, an increase by 0.4 percent YOY. In H1 2022, the total retail sales of consumer goods went down by 0.7 percent, while the investment in fixed assets (excluding rural households) grew by 6.1 percent YOY; the total value of import and export of goods increased by 9.4 percent YOY, with export up by 13.2 percent and import up by 4.8 percent.

These key statistics suggested that the economy has seen fluctuations to some extent in H1 2022. The pace of economic recovery was more robust than expected from January to February, but major economic indicators declined in March and April due to Ukraine crisis and related sanctions as well as multiple and sporadic local outbreak of COVID-19 pandemic in China. However, a solid upward trend was again observed since May.

In H1 2022, China’s economy was combating heightened “triple pressures” – shrinking demand, supply shocks and weakening expectations – due to various unexpected factors at home and abroad. The international environment became more complex, severe, and uncertain, with the Ukraine crisis continuing to intensify and escalate and the number of countries imposing sanctions on Russia hitting the highest level in post-Cold War history. This caused a huge impact on global politics, trade and economy, energy, and finance. On the other hand, sporadic COVID-19 cases across China presented greater challenges in epidemic control and led to stricter measures. As a result, “triple pressures” continued to weigh on the nation’s economy. Many countries around the world face similar problems driven by the unprecedented global pandemic and see changes in international affairs.

To address these tough challenges and demonstrate the commitment of a major country, the 2021 Central Economic Work Conference analyzed that China’s economy was generally operating in line with expectations, and stressed that the country will prioritize economic stability while pursuing progress; ensure the full, accurate and comprehensive implementation of the new development philosophy; advance stability on six key fronts and security in six areas; stabilize the macro economy; and keep major economic indicators within an appropriate range. Confronted with the decline in economic indicators, the Central Committee of the Chinese Communist Party and the State Council rolled out a timely package of detailed policy measures to promote the stabilization and rebound of the economy.

As a result, the resurgence of the pandemic was effectively contained, the national economy registered a stable recovery, production and demands saw improving margins, market prices were generally stable, people’s livelihood was protected sufficiently with robust steps, the momentum of high-quality development was sustained and the overall social stability was maintained.

On another front, the tradevolume between South Africa and China reached an impressive US$54.35 billion in 2021. In South Africa, there are over 200 Chinese enterprises, covering an array of industries such as energy, finance, mining, home appliances and logistics, and bringing more than 400,000 jobs to the country. In Q1 2022, South Africa’s economy grew by 1.9% amid a global downward trend, outstripping the expectations of many. Though growth slowed down a bit in Q2 due to severe flooding and the Ukraine crisis, signs of recovery remained strong.

This shows the economies of South Africa and China share similar challenges and opportunities and are inextricably interconnected. The past has taught us that only a solid partnership can facilitate more effective and long-lasting economic and trade co-operation between two countries, which aptly illustrates China-South Africa relations. With South Africa taking over the rotating presidency from China in 2023, we believe it will bring more opportunities for South Africa and other developing countries in Africa and light up the path to a brighter and better future for all.