Nation powerful engine of global economic recovery, Rio Tinto exec says

Despite facing domestic and international challenges, China's economy demonstrated fundamental strength and resilience in 2023, and the country remains a powerful engine of global economic recovery, a top company executive said.

"As the world's second-largest economy, we believe China will continue to be a driving force for global manufacturing and trading, and an important stabilizer in the global supply chain," said Alf Barrios, chief commercial officer of Rio Tinto.

Barrios' comments came after the Government Work Report announced the country's economic expansion goal during the two sessions early this month. The report was delivered by Premier Li Qiang at the opening of the second session of the 14th National People's Congress, the country's top legislature, in Beijing.

"China outlined a strong and clear roadmap for its economic development in 2024, and I am confident the country remains a powerful engine for global economic recovery," he said.

"China stated its dedication to growing new quality productive forces to propel high-quality development, with strong commitment to green development in particular. This represents tremendous potential for Rio Tinto in terms of both trade and strategic partnerships."

Forecasting strong demand from manufacturing and infrastructure investment, specifically in solar cell production, lithium-ion battery and EV production in China, Rio Tinto said it looks forward to broadening and deepening its collaboration with Chinese partners, jointly developing decarbonization solutions and navigating the industry's low-carbon transformation with innovation.

According to Barrios, China's emphasis on developing new quality productive forces and advanced manufacturing by giving full play to the leading role of innovation will enhance the resilience and competitiveness of its industrial and supply chains, and inject new impetus into the country's long-term economic growth.

"I believe the rise of new quality productive forces will inject new momentum into China's economic recovery and help boost its core competitiveness on the global stage," he said.

China's efforts in developing new quality productive forces will ensure a more resilient economy while improving the resilience of its industrial and supply chains, said Li Xianjun, an associate researcher at the Institute of Industrial Economics at the Chinese Academy of Social Sciences.

Strengthening the capacity to defend against external risks will help build the country into a manufacturing powerhouse, Li with the CASS said.

As the largest market of Rio Tinto, China is vital to the long-term success of the company, which has been China's largest iron ore supplier with around 250 million metric tons of shipments every year, and also a provider of key products such as copper, bauxite, alumina, borate, salt, and other minerals, said Barrios.

"Openness and cooperation being the enduring drivers of progress, China's ongoing openness will foster collaboration and innovation with profound implications for the world," he said.

"I believe foreign businesses, including Rio Tinto, will be able to contribute more to helping China grow and achieve its goals for high-quality development."