Bright prospects for Chinese economy propel global economic recovery

The global economic recovery remains sluggish, with geopolitical conflicts exacerbating risks and challenges, unilateralism and protectionism on the rise, and the rhetoric of “decoupling” and “de-risking” growing noisier. As the world’s second largest economy, China’s economic trajectory draws worldwide attention. The latest data from the National Bureau of Statistics of China reveals that despite external pressures and internal challenges, the Chinese economy is constantly improving, playing a pivotal role in supporting global economic recovery.

China continues to be the primary engine driving global development

In 2023, the Chinese economy exhibited a robust growth of 5.2 per cent, contributing an increment equivalent to the total economic output of a medium-sized country. This growth rate far exceeds the projected global growth of approximately 3 per cent, solidifying its position at the forefront among major economies. Over the past decade, China’s contribution to global economic growth has consistently stayed above 30 per cent. China is the only country encompassing all industrial categories in the United Nations industrial classification. The added value of its manufacturing industry accounts for around 30 per cent of the global total. 

China is now advancing Chinese style modernization on all fronts through high-quality development, bringing over 1.4 billion people into a modernized era and thus providing a sustained driving force for global development.

Prioritising the optimisation and upgrading of economic structure, China is implementing an innovation-driven development strategy. 

The service industry and consumption, as main drivers of economic growth, have gained prominence, with the added value in the service sector accounting for 54.6 per cent of GDP in 2023. The three-day New Year holiday in 2024 saw domestic tourism hitting 135 million trips. 

By the end of 2023, renewable energy exceeded half of the total installed capacity of electricity generation. Both the production and sales of new energy vehicles ranked first globally, with a 67.1 per cent increase in the export of electric passenger cars. According to the World Intellectual Property Organisation’s annual report, China’s global innovation index ranking rose to 12th place. The “demographic dividend” in China is transforming into a “talent dividend”, with the country leading globally in total talent resources, science and technology manpower, and overall research and development personnel, not to mention the second highest number of unicorn companies.

China’s high-level opening-up continues to progress

China’s overall tariff level has been cut to 7.3 per cent, relatively on par with the level of developed members of the World Trade Organisation. It is committed to fostering a first-class business environment which is market-oriented, law-based and in line with international standards. Over the past five years, the return on foreign investment in China stands around 9 per cent, ranking high globally. From January to November 2023, the number of newly established foreign-invested enterprises increased by 36.2 per cent year-on-year. China has become major trading partner for more than 140 countries and regions. Despite challenges such as shrinking external demand, its share of global trade remained stable last year. Total trade with countries participating in the Belt and Road Initiative grew by 2.8 per cent, accounting for 46.6 per cent of its total trade volume. 

China successfully hosted the International Import Expo, International Fair for Trade in Services and the Canton Fair, with the International Import Expo witnessing a 6.7 per cent increase in intended transaction amount compared to the previous edition.

The bright prospects of the Chinese economy translate into global opportunities

China’s current middle-income population exceeds 400 million people, and it is expected to double in the next decade or so. Each year, over 100 million people travel abroad. 

This fuels a continuous increase in demand for goods and services. Urbanisation rate stands at 66.16 per cent, significantly lower than the average of developed countries. Each year, over 10 million rural residents migrate to urban areas, creating substantial demand in areas like urban renewal, infrastructure upgrades in transportation and telecommunications, housing, education, medical services and elderly care. China is actively promoting green infrastructure, green energy, green transportation and green lifestyle, with estimated investment and consumption market value reaching trillions of yuan annually. 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 will continue to expand import of high-quality products and services from around the world, providing broader space for global trade and investment growth. China will open its doors still wider.

Looking ahead in 2024, we are mindful that the external environment for economic development remains complex and challenging. Issues such as insufficient domestic demand, overcapacity in some industries, weak social expectations and numerous hidden risks persist, and various difficulties and challenges are to be overcome. However, the Chinese economy retains its resilience, immense potential and vibrant dynamism. The long-term fundamentals remain positive. We possess the confidence, conditions and capability to successfully achieve annual economic and social development goals, which in turn will provide impetus for global economic recovery.

Under the strategic guidance of leaders from both countries, China-Jordan relations have developed healthily and steadily in recent years, with fruitful results in practical cooperation including trade and investment. At the end of last year, China and Jordan signed a Memorandum of Understanding on Belt and Road cooperation, opening up broader prospects for mutually beneficial cooperation between the two countries. We wish to seize this opportunity, further align our development strategies and policy measures with Jordan, work together to inject new momentum into our bilateral relations, and stride forward hand in hand on our new journeys of modernization.

Chen Chuandong is the Chinese ambassador to Jordan