China shows Economic Rebound While Recovering from the Coronavirus Pandemic
By Jasmine Wang
While much of the world is still struggling with controlling the coronavirus pandemic, China has shown that economic rebound is possible while controlling the pandemic.
Their economy increased 4.9 percent in the July-to-September quarter compared with the same months last year. This increase brings China almost back up to the amount of growth they were at before the pandemic - around 6 percent growth.
While the United States and Europe are also showing some growth, another wave of cases is expected for them, so China’s lead is expected to increase.
China’s economic growth has increased the number of jobs in China but has damaged growth in other countries. This is because its imports haven’t increased as much as its exports.
While China’s model for restoring growth is effective for China, it may not work for other countries. China has resorted to tracking its population through their cell phones, week long lockdowns of neighborhoods and cities, and costly mass testing in response to even the smallest outbreaks. This has caused China to be in a lot of debt. The government is aware of the risk of letting debt accumulate quickly; however, they cannot risk hurting their real estate activity, a sector that represents up to a quarter of the economy.