China remains key driving force for global economic growth

DALIAN -- Despite the world grappling with a slowdown in economic growth and a challenging recovery, China's economy has maintained steady development, bolstered by the rise of new industries and new growth drivers.

During the 15th Annual Meeting of the New Champions, also known as the 2024 Summer Davos, which concluded on Thursday, participants hailed China's efforts in cultivating new quality productive forces, noting that it has not only injected new vitality into the Chinese economy but also expanded opportunities for global cooperation.

Speaking at the opening ceremony, Polish President Andrzej Duda said that China's contribution to world economic growth has stayed at around 30 percent over the years, and it continues to be a key driving force for global economic growth.

New growth drivers

Since the start of this year, the Chinese economy has maintained its recovery momentum. It started strongly in the first quarter with a 5.3 percent year-on-year growth and continued to grow steadily in the second quarter.

Official data showed that indicators measuring consumption, trade in goods and value-added industrial output all posted positive performance in May.

"We have the confidence and capability to achieve the growth target of around 5 percent for this year," Chinese Premier Li Qiang said when addressing the opening plenary of the event.

International organizations and institutions have raised their forecasts for China's economic growth, reflecting strong confidence in the country's future prospects.

Recently, the World Bank increased its forecast for China's 2024 economic growth to 4.8 percent, 0.3 percentage points higher than the previous forecast. The International Monetary Fund (IMF) also revised China's economic outlook to 5 percent, 0.4 percentage points higher than the previous forecast.

This positive outlook rebuffs the narratives of some Western politicians and media, who claimed that China's economic slowdown could pose risks to global economic growth. According to IMF analysis, a 1 percentage point increase in China's GDP growth results in an average of 0.3 percentage point increase in growth for other economies.

China's economy has exceeded expectations and shown strong resilience in the first half of this year, especially in emerging industries, Jason Ding, managing partner of Greater China offices with Bain & Company told Xinhua.

In particular, China has gained an international edge in electric vehicles, lithium batteries and photovoltaics. Renewable energy now accounts for over 50 percent of the country's total installed capacity.

"I see huge opportunities in China since it is leading the way in a series of new technologies such as the batteries and new energy vehicles, which have provided new drivers of growth," said Merik Dusek, the managing director of the World Economic Forum.

"High-quality growth" is more than just a popular buzzword, said Peng Sen, president of the China Society of Economic Reform. "This is about advanced productivity and innovation."

Future growth for China's industries requires a revolutionary transformation on the technological front, as well as a focus on cutting-edge technologies such as generative AI and advanced chips, he added.

Opening up endeavour

Amid a gloomy global economic outlook, China's sustained economic growth promises positive spillover effects for the rest of the world.

At present, China is a major trading partner of over 140 countries and regions. In the first five months of this year, its trade in goods with other countries grew by 6.3 percent year-on-year, according to official statistics.

China has a vast market of over 1.4 billion people, a comprehensive industrial support system, an abundant labor force and talent pool, and diverse application scenarios, said Jason Ding, adding that these unique advantages could not only meet domestic demand but also enhance supply in the international market.

For example, the country's cultivation of large-scale new growth drivers in sectors such as green infrastructure, green energy, green transportation and green lifestyle will generate investment and consumption markets with an estimated size of 10 trillion yuan ($1.4 trillion) annually, promising enormous potential.

Emphasizing the fundamentally global nature of these new technologies, Keyu Jin, a professor at the London School of Economics and Political Science said, "China might be leading the way in EVs, batteries and solar panels, but they are all embedded in a global supply chain. It's going to involve everybody."

In contrast to some countries resorting to regressive actions like decoupling, disrupting supply chains and building barriers, China has reaffirmed its commitment to opening its doors wider to the world and deepening cooperation with international communities.

In his speech, Premier Li Qiang called on all countries and regions to work toward deepening scientific and technological exchanges and cooperation, bolster the foundation for green development, safeguard an open market environment, and promote inclusive and mutually beneficial development.

China remains steadfast in its commitment to opening up. It has pledged to increase imports of high-quality goods and services from all over the world, attract increased foreign investment in sectors such as medium and high-end manufacturing and biopharmaceuticals, further streamline market access, and foster an open, inclusive and transparent business environment for enterprises worldwide.

"We definitely need to keep China open for the world, but we also need to keep the world open for China," Jin added.