Since Wuhan in Hubei Province, central China, enforced a lockdown earlier this year to fight the novel coronavirus disease (COVID-19) epidemic, the shape of China's economic recovery has stoked much debate. Will the world's second largest economy fall into an L-shaped stagnation, or present a trajectory in the shape of U, V or W?

China is now at the forefront of both epidemic prevention and control and economic recovery. As it has brought the disease under control, the economy is healing better than expected, as indicated by more and more macro-economic data, especially the positive gross domestic product growth in the second quarter (Q2) of the year.

The economy expanded by 3.2 percent year on year in Q2, following a 6.8 percent contraction in the first quarter. Contraction of the retail sector declined markedly, while foreign trade in the first half of this year exceeded expectations.

A more robust growth is expected in the second half of this year and beyond, and the V camp is getting more endorsement. According to an IMF projection, China is expected to achieve what could be the sole positive annual GDP reading among major economies.

Millions of market entities deserve kudos for the bottoming out. Their resilience served as the ballast in the economy weathering the challenges, and their vitality will be decisive in enabling a quick V-shaped rebound.

Contributions made by all market entities to epidemic prevention and control, as well as to economic and social development were hailed by President Xi Jinping, who pledged more efforts to stimulate the vitality of market entities.

By the end of 2019, China had 123 million market entities including nearly 38.6 million enterprises and 82.6 million individual business owners. Xi stressed taking every necessary measure to ensure their survival and better development.

China seeks to forge a new development pattern whereby domestic and foreign markets can boost each other, with the domestic market as the mainstay. To leverage the huge domestic market, the wellbeing of market entities that generate wealth, spur innovation and sustain employment, must be secured.

The wellbeing of market players is a gauge of the competitiveness of a country's business environment and helps boost the government's troubleshooting capabilities. China has been striving to forge a market-oriented, law-based and internationalized business environment, while market entities are benefiting from tax and fee cuts, reduction of rent and interest rates, and other targeted relief policies.

China is set to complete building a moderately prosperous society in all respects this year despite COVID-19 challenges. On the new journey toward building a modern socialist country, its market entities will grow stronger.

This is an edited version of an article published by Xinhua News Agency

Copyedited by Madhusudan Chaubey

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