Recovery or Recession? – Three Questions about China’s Economy

For some time, there have been some commentary in the international community that speak ill of China’s economy.

What is the trend of China’s economy?

Recently, the National Bureau of Statistics of China has published the statistics about China’s national economic performance in 2023.

It shows that China’s economy has rebounded and moved upward, with high-quality development solidly advancing, new economic drivers developing faster, market demand recovering steadily, green transformation forging ahead, and foreign trade becoming more resilient.

China’s economy will continue to provide strong impetus for the world.

Is China’s economy stagnating? As shown by the statistics, China’s economy is making steady progress, and remains the biggest engine of global growth.

The International Monetary Fund has stated that China will be the largest driver of global economic growth in the next five years, and one percentage point increase in gross domestic product (GDP) growth in China leads to 0.3 percentage point i
ncrease in growth in other economies.

As the only country encompassing all industrial categories in the United Nations industrial classification, China contributes to around one-third of world economic growth over the years.

The scale of China’s manufacturing industry has ranked first in the world for 13 consecutive years.

In 2023, the Chinese economy has achieved a year-on-year GDP growth of 5.2 per cent, outpacing most major economies.

China is now advancing Chinese modernisation on all fronts through high-quality development, delivering modernisation to more than 1.4 billion people.

It will be a remarkable achievement in human history, one that will provide continuous impetus to the development of China and the wider world.

Will China’s declining population pose economic challenges?

China’s demographic dividend is turning into talent dividend, as innovation is the primary driving force for development.

China now ranks first in the world in terms of the size of talent pool, human resources in scienc
e and technology and the total number of researchers.

China’s industrial optimisation and upgrading has achieved remarkable results and is moving up the mid-to-high-end value chain.

China’s expenditure on research and development and investment in high-tech industries have maintained double-digit growth for many years.

The number of China’s patent applications ranks first in the world, and the number of unicorn companies ranks second in the world.

China is pushing ahead green and low-carbon transformation, which will provide impetus for development in green infrastructure, green energy, green transportation and other fields, and generate a market of 10 trillion yuan per year.

Is China’s Door closing?

China remains firmly committed to opening up, sharing development opportunities with the world.

President Xi Jinping’s call for high-quality Belt and Road cooperation and the Global Development Initiative have provided the most inclusive and extensive international cooperation platform.

China is the major
trading partner of more than 140 countries and regions.

Our overall tariff level has been cut to 7.3 per cent, relatively at par with the developed members in the World Trade Organisation.

China is the world’s largest source of international development financing.

Since the beginning of this century, China has provided approximately $1.34 trillion in loans and grants to more than 20,000 projects in 165 low- and middle-income countries.

By opening up wider, China aims to develop together with all in the world.

Recently, there are some negative rhetoric against China’s economy.

Some countries want to shut out China in the name of ‘de-risking’, to ‘decouple’ from China, fragment industrial and supply chains, and build ‘small yards with high fences’.

However, facts speak louder than words. In the post-epidemic era, despite challenging international environment, increasing uncertainty of the world economy and insufficient growth momentum, China’s economy can still achieve its growth targets beyond expectati
ons with per capita disposable income continuing to rise, which is a strong demonstration of China’s resilience, vitality and potential.

To shut out China is to throw away opportunities, cooperation, stability and development.

Such a move would only create and spread risks, and no one would benefit from it.

As Premier Li Qiang has stated in the special address at the Opening Ceremony of the World Economic Forum Annual Meeting 2024, the world has entered a new period of turbulence and transformation, yet the overall direction of human development and progress will not change, the overall dynamics of world history moving forward amid twists and turns will not change, and the overall trend toward a shared future for the international community will not change.

After all the shifts and changes over the years, all should cherish communication the more and exchange, solidarity and cooperation, openness and sharing, peace and stability, forging ahead with a shared aspiration for a better future toward building a
community with a shared future for mankind!

Source: Ghana News Agency