Chinese economy will help sustain global recovery

During a meeting with International Monetary Fund Managing Director Kristalina Georgieva via video link on Friday, Premier Li Keqiang said that China will continue to balance pandemic prevention and control measures with economic and social development, and implement stable macro and sound monetary policies.

China's central bank cut the reserve requirement ratio by 0.5 percentage points to 8.4 percent on Monday to boost the real economy, especially to help micro, small and medium-sized enterprises.

The identification of the Omicron variant of the novel coronavirus in South Africa has caused sharp fluctuations in stock markets around the world, affecting the already floundering global economic recovery. Even the Chinese economy faces new downward pressures.

Basically, China's monetary policy remains stable.

Cutting the reserve requirement ratio will lower the cost of funds for financial institutions and push lending rates downward, thus making it easy for micro, small and medium-sized enterprises to get financing and promoting the development of the real economy.

Another problem is inflation, which has hit a five-year high in more than 80 countries and regions this year, with the global inflation rate as a whole set to hit a 10-year high of 4.3 percent.

Inflation increased by 6.2 percent year-on-year in the United States in October, the highest increase in 31 years, and in Turkey by 20 percent year-on-year. At least 27 countries have raised interest rates this year and the US Federal Reserve has vowed to reduce asset purchases.

While developed economies are tightening their monetary policy, indications that China may moderately ease it demonstrate China's "counter-cyclical adjustment" capacity and the resilience of its economy. China's economic resilience has been underpinned by its robust production, trade and investment, as well as its flexible exchange rate policy.

That China has largely contained the pandemic has also contributed to the strengthening of its economy's resilience.

Besides, China has balanced prevention and control measures with economic and social development, and leveraged the advantages of its industrial chains to ensure sustained economic recovery.

The fundamentals of the Chinese economy remain sound, and there is still ample room for policy maneuvering. The Chinese economy is thus becoming an important guarantee for the recovery and sustainable development of the world economy.