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Daily economic news
2020-11-29 20:10:37
Zhao Linan
According to data released by the National Bureau of Statistics on November 27, from January to October, industrial enterprises above the designated size across the country achieved a total profit of 5012.42 billion yuan, a year-over-year increase in value. 0.7%. The cumulative profit growth rate went from negative to positive for the first time this year.
It is worth noting that, against the backdrop of the continued economic downturn in all countries of the world this year, it is rare for China to achieve such results. This is also an important strategic achievement by China in coordinating epidemic prevention and control and economic and social development.
In response to this result, the National Statistics Office analyzed: “The relationship between market supply and demand is improving day by day, the industrial cycle is gradually unblocked, the production and functioning of industrial enterprises continue to improve and the situation of recovery of profits is further consolidated “.
The author believes that, overall, the steady recovery in profits of Chinese industrial enterprises has further consolidated and the growth rate of corporate profits has also increased further. However, we cannot relax our vigilance and we must still remain sober enough to be able to achieve stability in times of peril.
On the one hand, the global epidemic is at risk beyond expectations, and the global economy could also be hit by the second wave of epidemics and further decline; on the other hand, due to the broad stimulus policies of various countries, sentiment in foreign financial markets increased, which was in line with economic fundamentals. The deviations have increased the risks of the financial market. Although these two aspects are exogenous factors, they can indirectly affect our economy.
Likewise, in the general context of China’s economic recovery, there are also endogenous risk factors. The National Bureau of Statistics stressed: “At the same time, it should be noted that the credit growth rate of industrial enterprises has increased and the pressure on cash flow has increased, which is not favorable to enterprises. Continued recovery of production and operation “.
How to continue to consolidate the profits of industrial firms in the next economic work, and thus put the economy back on the right path of growth, is an important point of macroeconomic policy.
The author believes that in the next stage, we must continue to carry out a solid work of “six stability”, fully implement the task of the “six guarantees” and firmly grasp the expansion of domestic demand in accordance with the new construction development model of an internal cycle as the main body and double national and international cycles. Strategic basis, continue to stimulate the vitality of market players and consumption potential and promote the healthy development of production and operation of industrial enterprises.
Specifically, the primary factor is still the prevention and control of epidemics. As winter approaches, all sectors of society still need to remain vigilant, continue building an epidemic prevention and control network, and ensure that there is no second wave of epidemics in our country, which can provide a solid foundation. for economic growth. Based on the absence of recurrence of the epidemic, ensuring sufficient energy for investments, consumption and exports is the key to achieving economic growth.
At the moment, investments, consumption and exports are all in constant recovery. From January to October, Chinese investment increased 1.8% year-on-year. Among them, the three main areas of investment: real estate investment, infrastructure investment and manufacturing investment are all picking up. At the same time, consumption also increases. In October, total retail sales of consumer goods in China increased 4.3% year-on-year, and the growth rate was 1 percentage point faster than in September. In terms of exports, from January to October, the total value of Chinese exports increased by 0.5%. October also turned positive for the first time in the year.
It is worth noting that the number of epidemics in European and American countries has been gradually increasing recently, which leads to uncertainty on Chinese exports. To address this uncertainty, we must start from two aspects. On the one hand, based on the export market trend in the first three quarters of this year, the impact of the epidemic on exports is more of a structural change. Some sectors have been severely affected, while others have experienced substantial growth, which in turn forces companies to actively adapt strategies, such as increasing exports of epidemic prevention materials, home appliances, laptops and mobile office equipment.
On the other hand, countries that have been severely affected by the second wave of the epidemic in the near future may again fall into the suspension of production and production, which also creates opportunities for the transfer of orders from abroad to the domestic. Chinese companies need to be good at seizing such opportunities. We must use Chinese manufacturing as Provide strong epidemic protection globally.
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