(Drivebycuriosity) - It looks like that China`s economy is back to normal. This night we learned that China´s industrial production grew 6.9% YoY & retail sales advanced 3.3% YoY ( tradingeconomics). China`s GDP rose 2.7% in the third quarter and 4.9% YoY.
( source ).
The US might even have better recovery numbers for retail & GDP but there is a huge difference. America needs huge stimulus programs by the government to recover and pumped some trillions of dollars into her economy while keeping interest rates at zero. China abstained from such measure. China does not have huge stimulus programs and government checks and China´s benchmark interest rates is still 3.85% ( cnbc ). China´s economy recovered on her own strength (aus eigener Kraft).
China´s fast recovery from the corona crisis is no surprise. Beijing responded early, fast and consequently to the pandemic. Apparently the population has enough discipline for hand washing, mask-wearing & social distancing. As a result China´s numbers of new infections, active cases and deaths fell to almost zero (worldometers ).
The success allowed the reopening of China`s economy and the return to normality. China`s recovery is more sustainable than the US because it is not based on giant stimulus programs. China`s economy might even get stronger when the corona crisis has past. History shows that consumer and businesses are more willing to change behavior during setbacks (twitter). Innovations typically gain traction during tumultuous times: they get cheaper, faster, more convenient, more productive, more creative. Companies are streamlining operations and are getting more efficient & productive as they always do when they are challenged. China will overtake America sooner than many think!
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