China is reaping the economic benefits of its COVID-19 policies
China reported Monday that its gross domestic product expanded by 4.9 percent in the third quarter compared with a year earlier, putting the country on track for economic growth of between 1.9 percent and 2.5 percent in 2020. The U.S., meanwhile, will see its economy shrink by 4.3 percent this year, while European nations will contract by 8.3 percent, according to International Monetary Fund projections.
China, like most of the world, saw its economy contract sharply in the second quarter, due to the COVID-19 pandemic that started in Wuhan. "But since then, China has staged a dramatic economic recovery due to extensive, mandatory testing and quarantine policies," NPR reports. "Daily new cases of the coronavirus have dropped to single digits. Subsequent outbreaks were contained by strict, city-by-city lockdowns that have allowed the national economy to continue operating even as some regions were temporarily sealed off."
Beijing paved the way for a return to economic growth "in roughly three stages," The Wall Street Journal reports: Shutting down its economy from January through March, firing up its factories starting in April, and — "having almost entirely stamped out the coronavirus within its borders — encouraging consumers to begin venturing outside of their homes and opening up their wallets." This resumption of manufacturing has increased China's share of global exports and economic influence, and has widened its trade surplus with the U.S.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Because consumption is still soft in China and other countries, the country is now making more goods than people are able or willing to buy. Economists will be watching China's inventories for signs that its economic expansion is sustainable.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published