China has claimed an economic recovery has already begun in the state following the outbreak of coronavirus, much to the suspicion of analysts. However, economists have claimed the figures are unreliable with some stating the economic contraction experienced by China is far greater than reported. According to analysts at Capital Economics, China’s economy contracted by 10 percent in the first three months of the year.
This comes in stark contrast to the Communist party’s reported figures of 6.8 percent.
In the second quarter of the year, China reported an economic upswing of 3.2 percent after recovery from the peak of the virus pandemic.
Against, Julian Evans-Pritchard from Capital Economics stated the actual upswing is closer to two percent.
In addition, Thanh-Long Huynh who’s company QuantCube provides an independent view of the Chinese economy, also indicated the repaid growth in the state is impossible.
He told Der Spiegel: “It is simply impossible that China has grown again.”
He indicated the economic results may be slightly embellished due to the fall in demand for imports from China’s two biggest partners – the US and Europe.
His company analyses shipping and freight data from the major seaports which shows a drop in activity.
According to QuantCube, the number of job vacancies in the labour market also remains high – a sign economic difficulties remain.
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Martin Raiser, World Bank country director for China said: “It is indeed higher than what we had projected back in June when we released our Global Economic Prospects report, and we have upgraded our forecast accordingly.”
The apparent economic recovery comes amid a wave of international scepticism of the state.
Several countries have called for an independent investigation into the outbreak of COVID-19.
Telecommunications company Huawei will also be removed from the UK and Australian 5G network.
However, with Beijing focusing on restarting its economy, the state’s foreign minister has insisted China is not trying to spark any Cold War tensions with the US.
Wang Yi said: “Today’s China is not the former Soviet Union.
“We have no intention of becoming another United States.
“China does not export ideology and never interferes in other countries’ internal affairs.
“Our message is quite clear: we urge the US to stop acting with arrogance and prejudice, but enter into constructive dialogue with us on an equal footing.
“China never intends to and will never interfere in the US election and other US internal affairs.”
Additional reporting by Monika Pallenberg.