How could China achieve economic growth in 2020? 04-03-21 03:15 Updated BJT
Font size:A+A-

By Zhou Fujing, Tom McGregor

China's economy remains resilient in 2020 despite serious disruptions from the COVID-19 pandemic. The gross domestic product (GDP) last year expanded 2.3 percent year on year and reached 101.5986 trillion yuan. Economic performance took on a V-shaped recovery: 6.8 percent drop year-on-year in the Coronavirus-ravaged first quarter; 3.2 percent and 4.9 percent up respectively in the following two quarters as life and economy returned to normal; and 6.5 percent roaring in the last quarter. China is the only major economy to report economic growth for 2020.

China's economy, the world's second largest, finished the Coronavirus pandemic-hit year on a high note. When the major world economies plunged into recession, how could China make it happen? 

The growth was first engineered by getting Covid-19 under control.

The Chinese remained undaunted and stood united when the virus was ravaging the nation from early January to late March in 2020. Lockdown, stay-at-home and travel restrictions helped bring work, production, study, tourism back to normal in a short time. During the first post-pandemic National Day holiday, China saw a total of 637 million trips made across the country, generating 466.56 billion yuan in tourism revenue, according to China's Ministry of Culture and Tourism. Tourism recovered to approximately 79 percent of 2019 levels. 

Dual circulation: twin engines for economic growth

China has adopted the new "dual-circulation" development paradigm, which takes the domestic market as the mainstay while the domestic and international markets boost each other. During the 2021 Spring Festival 7-day holiday, China's major retail and catering industry generated a sales volume of 821 billion yuan and the movie box office, 7.8 billion yuan.

Further reform and opening up

Dual circulation does not mean closed-door development. In the year, China's total imports and exports of goods expanded 1.9 percent year on year to 32.16 trillion yuan, hitting a record high despite a worldwide slump in shipments. Moreover, on November 15, 2020, China and other 14 countries signed the Regional Comprehensive Economic Partnership (RCEP). China's foreign trade with the other 14 members of the RCEP amounted to 10.2 trillion yuan, up 3.5 percent year on year.

We can expect a bright year ahead for China.

Editor: zhangrui
04-03-21 03:15 BJT
Share this: