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Global Health Econ Sustain An analysis of national economic resilience

rate fluctuations are closely related to international trade health policy, fiscal policy, and monetary policy have
and foreign direct investment, which are affected by the played an important role in the economic recovery of
changes of domestic and foreign epidemics. From July to China, which may provide some reference for other
November 2021, the exchange rate of US dollar against countries in the mire of the COVID-19 epidemic. At
Chinese Yuan gradually stabilized and fluctuated around the beginning of the outbreak, China took decisive and
6.4. Overall, the exchange rate basically stabilized in the strict closure measures to prevent the further spread
third and fourth quarters of 2021. of the epidemic (Figure 1). At the same time, the
Chinese government adopted proactive fiscal policy
5.4. Brief summary and loose monetary policy to promote consumption
This paper studies the national economic resilience and investment. Moreover, it was not until the
of China in macroeconomic, industrial, and financial epidemic was basically under control that China
dimensions, by analyzing the economic recovery trajectory orderly promoted enterprises to resume operation
in these three dimensions after experiencing the huge shock and production, so as to gradually revive the economy.
brought by COVID-19. Our results show that China took In addition, the central bank tightened the monetary
about 2 years to recover from the COVID-19 epidemic policy in time, to try to avoid the inflation problem
and return to the pre-epidemic development status of caused by the long-term monetary easing policy and
macroeconomy, industrial structure, and financial system. economic overheating (Figures 2 and 11).
The current paper provides a referential framework for the China’s economy has demonstrated remarkable
measurement of economic development in China.
resilience, marked by a swift rebound to its pre-crisis
6. Conclusion and discussion growth trajectory following global financial crises, natural
disasters, or significant public health incidents, largely due
This study reviews the progress of COVID-19 epidemic to the deployment of flexible, efficient, and decisive policy
and the corresponding economic policies in China and instruments (Hu et al., 2011; Zhou et al., 2020). Initially,
then analyzes the national economic resilience of China China’s response to epidemics was characterized by firm
in macroeconomic, industrial, and financial dimensions and decisive epidemic governance, implementing strict
during the circumstances of temporary slowed-down containment measures during the outbreak’s peak, which
economic globalization. We found that China spent about were relaxed as control was regained, shifting focus toward
2 years to return to the pre-COVID-19 development status economic stimulus measures (Jin et al., 2022). This is
of macroeconomy, industrial structure, and financial because a premature relaxation of containment or delayed
system. The rapid recovery happening in China is mainly economic recovery efforts could lead to a misalignment with
attributed to two reasons. epidemic management steps (Jin et al., 2022). Second, timely
1. China has a strong economic foundation that has been and effective fiscal policies played a crucial role, including
built in past decades. Obviously, the national economic extending tax deadlines, subsidizing loan interests for small
resilience mainly depends on its strong economic and microenterprises, significantly increasing government
foundation. First, China has accumulated huge capital health and public safety spending, and offering subsidies and
in the past decades with a remarkable “China speed.” tax incentives to individuals and businesses. These measures
After joining the WTO in 2000, China has actively significantly bolstered consumption and production
participated in and developed international trade, resumption. Finally, a nimble monetary policy was pivotal
and its competitiveness and influence on the global for economic stabilization and recovery, exemplified by
economy have been continuously enhanced since. In China’s strategic loosening of monetary policy to spur short-
2010, China overtook Japan with a GDP of nearly 40 term growth post-shock, followed by a timely tightening
trillion Yuan, becoming the second largest economy to curb potential inflation after recovery. This paper
in the world. In addition, China’s GDP has exceeded contributes profoundly to the literature by offering analysis
100 trillion Yuan in 2020, accounting for more than of economic resilience at the national level, which helps to
17% of the world’s total economic output. Moreover, strengthen the understanding of economic resilience and
China has a strong production capacity and domestic call for more attentions on national economic resilience.
market, with a population of more than 1.4 billion and This study also provides some reference for measuring the
the world’s largest middle-income group, which are economic resilience at national level using more accurate
the “ballast” to support China in coping with short- and appropriate tools and instruments. However, this paper
term economic shocks. does not provide an accurate analysis of the economic
2. China adopted resolute epidemic governance, effective resilience of China. A good way to solve this problem is
fiscal policy and flexible monetary policy. The public to construct a national economic resilience index that

Volume 2 Issue 2 (2024) 13 https://doi.org/10.36922/ghes.1842