China's recovery bears positively on world economy, says Philippine business leader

MANILA -- As the largest and most dynamic emerging economy, China's economic recovery will boost the recovery and development of the world economy, a Philippine business official has said.

China's economy has withstood severe risks and challenges in the past three years, and its upward trend will have a positive impact on the world economy, George Barcelon, president of the Philippine Chamber of Commerce and Industry, told Xinhua in a recent interview.

"Unlike some countries with limited and expensive energy sources, which are main factors in pushing up inflation, I don't see inflation anywhere as a concern for China. The cost of production is still very competitive," Barcelon said.

China's economy grew 3 percent in 2022 despite downward pressures, its National Bureau of Statistics said on Feb 28.

In 2022, China's total expenditure on research and development (R&D) amounted to 3.1 trillion yuan ($449.3 billion), up 10.4 percent year-on-year, maintaining a double-digit growth for seven consecutive years.

By continuously increasing R&D input, China has been making headway in strengthening technological innovation, nurturing new drivers, actively solving stranglehold technical problems, and improving the core competitiveness of the manufacturing industry, Barcelon said.

"Substantial R&D input on innovation and high technology is critical to moving up the value chain," Barcelon added.

Against the backdrop of flagging global economic recovery and a more volatile global financial market, China has steadily advanced institutional opening up, retaining its appeal for foreign companies and investors.

In 2022, China's total trade in goods reached 42.1 trillion yuan, up 7.7 percent year-on-year. It was the first time the figure exceeded 40 trillion yuan, making a breakthrough on a high base.

According to Barcelon, China's further opening up will provide more global development opportunities.

"China has a very big domestic market. All the signs indicate that they are projecting higher growth in China. This would require more importation from other countries. Therefore, they will benefit from China's opening up," Barcelon said.

The Philippine Senate ratified the Regional Comprehensive Economic Partnership (RCEP) on Feb 21, a massive free trade agreement involving Australia, China, Japan, South Korea, New Zealand, and the 10 members of the Association of Southeast Asian Nations.

It is the world's largest free trade bloc covering about 30 percent of the world's population, as well as 30 percent of the world's economic and trade volume.

Barcelon believed the RCEP catalyzes long-term trade and investment growth between the Philippines and China, opening new opportunities for win-win cooperation.