Maintaining Confidence in China’s Economy: Reasons to Stay Positive
China’s Economy Continues to Grow Despite Skepticism
Despite skeptics predicting the end or collapse of China’s economy, the country has proven its resilience in recent years. In 2024, China’s gross domestic product (GDP) grew by 5 percent year-on-year, reaching 130 trillion yuan (17.8 trillion U.S. dollars) for the first time. This growth met the annual target of 5 percent, showcasing China as one of the fastest-growing major economies globally.
Throughout the year, China’s labor market remained active, with stable employment numbers. New employment in urban areas reached 12.56 million people, and the unemployment rate dropped to 5.1 percent. The housing market also saw improvements due to new policy measures, with new commercial housing sales growing in the fourth quarter.
China has continued to open its doors to the world, becoming the main trading partner of over 150 countries and regions. Total imports and exports reached 43.85 trillion yuan (6 trillion dollars), a 5 percent increase year-on-year. The country removed restrictions on foreign investment in the manufacturing sector and expanded outbound foreign direct investment in non-financial sectors.
Looking ahead, the World Bank raised its forecast for China’s GDP growth in 2024 and 2025. To maintain stability and promote progress, China aims to boost consumption and consumer confidence. Policies supporting equipment upgrades and consumer goods trade-in programs will be implemented, along with coupons and subsidies to encourage purchases of durable goods.
The Spring Festival season in China provided a significant boost to consumption, with record-breaking spending on gifts, travel, and entertainment. This surge in demand will drive production, innovation, and technological advancements, creating new opportunities for development.
Maintaining the confidence of foreign investors is crucial, and China plans to enhance institutional opening-up in various sectors. The country is focusing on service trade, green trade, and digital trade, with a commitment to green and low-carbon development. Key sectors like new energy vehicles, lithium batteries, and photovoltaic equipment will drive foreign trade growth.
With supportive policies in place, China is well-positioned to overcome challenges and sustain its economic growth. The country’s commitment to innovation and openness ensures that its economy will continue to thrive in the years to come.
Source: Xinhua
