Xinhua Commentary: Three reasons warrant China's positive economic outlook in 2024

This aerial photo taken on May 9, 2023 shows the container terminal at Lianyungang Port, east China's Jiangsu Province. (Photo by Wang Chun/Xinhua)

by Xinhua writer Peng Songhan

BEIJING, Dec. 28 (Xinhua) -- The past year has seen a faltering global economy struggling to get back on its feet in the post-pandemic era. Amid a multitude of downward pressures and unprecedentedly adverse global landscape, China's economy has manifested considerable resilience and certainty as well as a blend of upward trend and continuity.

In the first three quarters of 2023, China has achieved year-on-year GDP growth of 5.2 percent, a pace thrusting China ahead of the world's major economies and thereby laying a solid foundation for achieving its annual target and stronger development in the coming year.

Why could the Chinese economy forge ahead against the headwinds of escalating global instabilities and uncertainties? On top of its own economic strengths, China's hard-won steady economic rebound can also be attributed to its unremitting quest for new initiatives aimed at achieving high-quality development, as well as its steadfast commitment to high-level opening up.

For starters, the Chinese economy holds unique and unparalleled strengths. Over the transformative 45 years of reform and opening up, China has not only developed a robust foundational industrial system but also achieved global industrial leadership in a vast array of categories.

China's industrial prowess and ever-evolving economic strength are evidenced in 2023 by its brilliant feats such as the launch of its first large cruise ship, the maiden commercial flight of C919 jetliners, and the remarkable advancement of the "East Data, West Computing" project.

China's economic terrain flourishes through a robust domestic cycle within a population exceeding 1.4 billion and a middle-income group surpassing 400 million people. Abundant market resources provide substantial developmental opportunities, promoting the clustering of industries and enhancing resilience against external disruptions.

China's innovative approaches, notably its emphasis on a green transition, to achieve high-quality development also fuel its growth momentum.

In the past year, Chinese electric vehicle (EV) industries have made great strides. Key EV makers of China are also increasing its investment abroad, particularly in Europe. In 2017, BYD, a prominent Chinese EV company, established its first European EV factory in Komarom, Hungary. This facility primarily produces electric buses and tourist coaches.

People visit the BYD booth at the 2023 International Motor Show, officially known as the IAA MOBILITY 2023, in Munich, Germany, Sept. 8, 2023. (Xinhua/Zhang Fan)

Regarding EV batteries, collaboration between China and the EU is gaining steam. Stellantis, the world's fourth-largest automotive group, and Contemporary Amperex Technology, a leading innovator in new energy technologies from China, have recently signed a Memorandum of Understanding, which covers the local provision of lithium iron phosphate battery cells and modules to support EV production in Europe.

China's pursuit of green and sustainable development is also helping developing countries realize energy transition and cleaner development. From the Karot Hydropower Project in Pakistan, the De Aar Wind Power Project in South Africa, to the Al Dhafra PV2 Solar Power Plant in the UAE, China-contracted renewable projects worldwide are facilitating green and low-carbon growth in more countries. Currently, 50 percent of the world's wind power equipment and 80 percent of the photovoltaics equipment are from China.

China has been promoting a new development paradigm through high-quality opening up, which has been considered essential for China's miraculous economic rise over the past four decades.

This year marks the 10th anniversary of the Belt and Road Initiative (BRI) and the 45th anniversary of China's reform and opening up. The BRI represents high-quality opening up in tandem with high-quality development. In just a decade, more than 150 countries and 30 international organizations have joined the initiative, a testament to its growing popularity.

In October, China held the third Belt and Road Forum for International Cooperation (BRF). The gathering yielded fruitful results, with 97.2 billion U.S. dollars in Sino-foreign business agreements. The success of the forum sends out a clear message of seeking solidarity, collaboration, openness and win-win results.

This photo taken on Oct. 14, 2023 shows a floral decoration for the third Belt and Road Forum for International Cooperation (BRF) near China National Convention Center in Beijing, capital of China. (Xinhua/Ju Huanzong)

As a major trading partner of over 140 countries, China is also taking new measures to improve the domestic business environment for foreign investors.

In August, China rolled out guidelines featuring 24 specific measures to further improve its foreign investment environment and beef up foreign investment inflow, a significant push towards higher quality opening-up.

While continuing to expand market access and cut the negative list for foreign investment, China will strive to improve its business environment and better serve foreign companies. According to the survey report on the business environment for foreign companies in China in the third quarter, over 80 percent of the surveyed companies say they are satisfied with the business environment in China.

The survey also showed that 70 percent of the companies say their industrial chain layout in China will "remain stable," up by 4.57 percentage points from the second quarter, and 80 percent expect their yearly profits to increase or remain flat in 2023.

China stands ready to work with other countries to make the pie of the global market even bigger, strengthen the mechanisms for sharing benefits globally, and explore new ways of international cooperation.

World-renowned investor and financial commentator Jim Rogers said that China's commitment to high-level openness will "benefit the entire world." He views China's expansion of high-level openness as extremely beneficial for both the world and China. This perspective underscores the interconnectedness of global economies and the positive impact of China's policies on a broader scale.

"Everything I read about China these days is that Beijing has determined that it's going to continue to open up," he said. "It's going to continue to engage with the outside world."