Economic recovery gains momentum

The recovery momentum of China's economy is poised to be consolidated and strengthened, while the country's GDP growth target of around 5 percent for this year is reasonable and achievable via enhanced efforts, a senior political adviser said.

Ning Jizhe, deputy director of the Committee on Economic Affairs of the National Committee of the Chinese People's Political Consultative Conference, the country's top political advisory body, expressed confidence in China's economic prospects, saying that the economy has shown signs of a steady rebound since the country optimized its COVID-19 response measures last year, with contact-based consumption witnessing speedy growth.

Ning, who is also vice-chairman of the China Center for International Economic Exchanges and a former deputy head of the National Development and Reform Commission, said the favorable conditions for economic development outweigh unfavorable ones, given that the country boasts a super-large market, a complete industrial system, improved innovation capacity and abundant high-quality talent.

China's economy expanded by 5.2 percent last year, significantly higher than that of the United States at 2.5 percent, the eurozone at 0.5 percent and Japan's 1.9 percent, data from the National Bureau of Statistics showed.

As the broader economy is still facing pressures at home and abroad, Ning said the country needs to strengthen macroeconomic measures and implement policies conducive to stable growth. Countercyclical adjustments must also be strengthened to maintain an annual growth rate of around 5 percent this year.

"The proactive fiscal policy must be moderately strengthened, with improved quality and efficiency," Ning said, adding measures include expanding fiscal expenditures, advancing the quota for special-purpose bonds for local governments, and effectively implementing structural tax and fee reduction policies.

Heightened efforts should also be made to reinforce the dominant role of enterprises in driving innovation, increase spending on research and development relative to GDP, and expand venture capital and equity investment for technological innovation, as part of a broader push to accelerate the development of new quality productive forces.

Acknowledging that consumption has become a primary force bolstering the country's economic development, Ning highlighted the need to increase household incomes, improve residents' purchasing power and optimize the consumption environment to spur consumption.

As for expanding productive investment, Ning said the investment demand for new types of infrastructure containing digital, intelligent and green technologies will continue to rise, adding there will also be opportunities arising from large-scale equipment renewals and transformation of traditional industries.

Tian Xuan, vice-dean of Tsinghua University's PBC School of Finance, said the GDP growth target of around 5 percent for 2024 indicates expectations of better economic performance this year compared to last year, given the low base rate in 2022.

Tian, who is also a deputy to the 14th National People's Congress, said China's economy has sustained robust growth despite uncertainties and challenges — in stark contrast to the situations in some other major economies.

He said the country has ample policy space to bolster the economy, adding that it will be advisable for the country to expand central borrowing.

Cui Jingyi, vice-president and general manager of industrial software developer Aveva China, said: "We remain optimistic about the long-term potential of the Chinese economy. China's economic landscape is dynamic and resilient, characterized by ongoing reforms, technological advancements and a strong commitment to sustainable development."

She said the country's robust infrastructure, thriving innovation ecosystem and large consumer base continue to underpin its economic vitality.