After economic storm, a bright future beckons

At present, the nation's economy is facing many serious challenges. Externally, the Russia-Ukraine conflict, global supply chain woes and disputes with the United States are weighing on sentiment. Internally, COVID-19 resurgences and various long-term factors such as debt risks faced by the real estate market and financial institutions as well as weakening market confidence among investors are creating uncertainty.

Indeed, there are many short-term difficulties in sight, but medium- and long-term prospects are more promising. China has become the world's second-largest economy after more than 40 years of reform and opening-up. And this will incubate more growth opportunities in terms of both supply and demand than any other major economy over the next five to 10 years.

For example, from the perspective of the supply side, there is a relatively high national savings rate, a complete industrial system, abundant human capital accumulated over 40 years and institutional dividends from further reforms. From the perspective of the demand side, as a nation boasting a large consumer market dominated by 400 million middle-income earners, China has tremendous consumption potential and growing trade ties with economies involved in the Belt and Road Initiative. It is fair to say that the medium- and long-term growth prospects of China's economy are promising.