By He Yin, Following the release of China’s 2023 economic data by the National Bureau of Statistics, it is acknowledged globally that China’s economy has successfully withstood challenges and experienced a strong rebound, serving as a driving force and an anchor for the global economy. China’s commitment to high-quality development has further infused the world economy with renewed vigor and heightened confidence.
The international community believes that the latest data reveals the remarkable resilience and potential of the Chinese economy, and China’s robust economic performance is poised to continue propelling global economic recovery.
China’s economy serves as a crucial driving force for the global economy. As the world has entered a new period of turbulence and change, and the momentum of world economic growth is sluggish, the Chinese economy made stable and sound progress in 2023, with total economic output exceeding 126 trillion yuan ($17.64 trillion), up 5.2 percent year on year.
Whether compared horizontally with major global economies or vertically with China’s previous year, this performance is impressive and hard-earned. In 2023, China’s economic growth generated over 6 trillion yuan, equivalent to the annual GDP of a medium-sized country. The report of the International Financial Forum demonstrates that China contributes 32 percent to global economic growth in 2023 and is the largest engine of the world economy.
The International Monetary Fund (IMF) said that a 1-percentage-point increase in China’s GDP growth leads to a 0.3-percentage-point increase in growth in other economies on average. Managing director of the IMF Kristalina Georgieva believes that the Chinese economy achieving its major expected targets is great news for China, Asia, and the world.
China’s economy brings rare stability to the global economy. As the world’s second-largest economy, China has developed positive economic fundamentals and a long-term trajectory. It is the only country with industries across all categories in the United Nations industrial classification. The added value of its manufacturing industry accounts for around 30 percent of the global total, leading the world for 14 years in a row. China is also home to over 200 mature industry clusters.
As China’s “demographic dividend” is transitioning into a “talent dividend,” the country now leads the world in the number of talents, scientific and technological professionals, as well as research and development personnel. China’s overall investment in research and development and high-tech industries has maintained double-digit growth for several years. The application of emerging technologies is accelerating, leading to the emergence of new products and business models. All of these will accelerate the formation and strengthening of new driving forces for China’s development.
An article published in the Pakistan Observer highlighted that “as the international community places growing confidence in China’s economic prowess, it emerges as a stabilizing force in an otherwise unpredictable global economic landscape, affirming its significance in the ongoing narrative of worldwide economic growth”.
Former Australian Prime Minister Kevin Rudd pointed out that so long as the Chinese consumer has confidence in China’s future, the economy will continue to grow reasonably well.
The total export of electric passenger cars, lithium-ion batteries, and solar batteries reached 1.06 trillion yuan, hitting the trillion-yuan mark for the first time and increasing 29.9 percent year on year.
Some foreign media outlets noted that for those with a long-term perspective, China’s increasing investment in product and technological innovation should be a source of confidence in the country’s long-term economic prospects.
China will continue to share new opportunities with all countries in the world. Despite growing risks in the world economy and surging undercurrents of protectionism, China has been committed to opening up and has opened its door even wider to the world, fostering a world-class business environment that is market-oriented, law-based, and internationalized.
In October last year, China vowed to remove all restrictions on foreign investment in the manufacturing sector, opening up opportunities for global investors to participate in the development of China’s manufacturing industry. Over the past five years, the return on foreign direct investment in China stands at around 9 percent, which is quite competitive globally.
Joe Ngai, chairman of McKinsey & Company in Greater China noted that in terms of market scale, consumer influence, and innovation capacity, the Chinese market stands unrivaled, with no other region worldwide capable of surpassing its prominence.
He believes that for companies, the Chinese market is not only a hub for innovation, but also can provide inspiration in the consumer field. “Multinational companies should continue to invest in China,” Ngai said.
China, with greater efforts and more practical measures, will effectively improve the quality of its economy and promote its growth within a reasonable range, consolidate and promote the momentum of economic recovery, to bring more benefits to the world and contribute more driving forces for global growth.
