Resilience of Chinese economy provides the world with certainty and stability: China Daily editorial

The tariff war engulfing the major economies, along with lasting geopolitical tensions, has spiked corporate costs and increased market volatility. The convergence of tensions and disruptions has clouded the global economic outlook, posing a profound test to the resilience of economies worldwide.

Against this backdrop of rising uncertainty, it should be a common endeavor of all economies to restore certainty and stability. A major takeaway from the Chinese economy during these years — in which it has managed to cope with both tariff attacks and containment challenges — is that certainty and stability can be realized through the implementation of targeted, practical and systemic policies; they are by no means gifts from others.

The Chinese economy grew by 5.3 percent year-on-year in the first half of this year, contributing an estimated 30 percent to global growth, serving as a major storm drogue for the world economy.

The International Monetary Fund's latest forecast of China's GDP growth for the year testifies to the resilience of the Chinese economy. The organization predicts that the world's second-largest economy will expand 4.8 percent this year, an upward revision of its earlier forecast of 4.0 percent.

The IMF also raised its outlook for economic growth across emerging markets and developing economies this year to 4.1 percent from 3.7 percent, driven by front-loading and a more upbeat view on China, according to a Reuters report.

Although China has encountered a multitude of politicized and nonmarket practices aimed at suppressing its development in recent years, it has withstood all the stress tests thrown at it. More importantly, it has unequivocally shown that the high-quality development of the Chinese economy is unstoppable as long as the nation focuses on doing its own things well.

Compared with the flip-flopping economic policies of some countries, China's institutional strengths and long-term thinking mean that its socioeconomic policies are effectively implemented and it always keeps the bigger picture in mind. China does not rely on short-term crisis interventions, but on structural resilience rooted in resolve and confidence.

In a recent meeting in preparation for the fourth plenary session of the 20th Central Committee of the Communist Party of China — which will study the proposals for the 15th Five-Year Plan (2026-30) for national economic and social development — the Political Bureau of the CPC Central Committee set the economic priorities for the second half of the year. The meeting was a typical example of how the country's leadership seeks to balance long-term vision with immediate needs. This comprehensive approach helps buffer the Chinese economy against present and future external shocks. In doing so, it provides stability for the global economy.

Openness is a key part of China's long-term perspective, which emphasizes greater international integration rather than isolation.

Data from the Ministry of Commerce indicates that as of the end of June this year, China's actual use of foreign direct investment during the 14th Five-Year Plan (2021-25) period had reached a cumulative total of $708.73 billion. Displaying their confidence in China's investment climate, 229,000 new foreign-funded enterprises were established during this period in the country, an increase of 25,000 compared with the previous five years.

Many foreign companies continue to see China as an indispensable part of their global strategies. According to the latest annual survey released by the US-China Business Council, US companies remain committed to pursuing opportunities in China over the long term and nearly all sampled companies report they cannot stay globally competitive without their China operations.

In the face of the current risks and challenges, China will focus on deepening reform and opening-up, promoting the in-depth integration of sci-tech innovation and industrial application, prevent and mitigate risks in key sectors, and expand domestic demand. To that end, governments at various levels are expected to make more efforts to strengthen domestic economic circulation and promote the positive interplay between domestic and international economic flows.

That the Chinese economy posted stable performance and made steady progress in the first half of this year reflects its solid foundation, multiple advantages, strong resilience, great potential, and the continuous accumulation of positive factors that support its high-quality development.

As a major trading partner of over 150 countries and regions, an ardent advocate of fair and inclusive economic globalization and a dedicated upholder of the rules-based world trade system, China will continue to offer opportunities to the world through its opening-up, and play a critical role in steadying the global industry and supply chains.

Looking ahead, the country will therefore continue to provide not only high-quality products and services to the world, but also much-needed certainty and stability.