#China #Guangzhou #Global Economy #Danilo Türk

China: The Cornerstone of Global Economic Stability

Former Slovenian President Danilo Türk, during an insightful interview, emphasized China's significance as a critical component of global economic stability. While addressing the nation’s recent economic developments, particularly during the annual “two sessions” in Beijing, Türk pointed out that China is targeting a GDP growth of about 5% for 2025. This growth is especially remarkable as it constitutes approximately one-third of the world's overall growth, a fact that showcases the stabilizing effect of China's economy on a global scale.

Economic Growth Amidst Structural Changes

In recent years, skepticism has arisen concerning China's economic robustness, especially from Western nations. Critics have voiced concerns that China's economy might be experiencing a downturn, particularly with the GDP growth rate projected to be lower than in previous years. However, Türk clarified that such structural changes are not indicative of failure but rather a transition that many economies undergo.

He stated, "The high level of growth in China inevitably brings moments of structural changes, which means some sectors will grow slowly while others will grow more rapidly." This observation aligns with the noted increase in foreign trade, setting a new record, alongside a notable year-on-year rise of 7.1% in exports as reported in the government’s work report. Although there was a decrease in labor-intensive product exports, mechanical and electrical goods saw substantial growth, indicating a shift towards high-end manufacturing.

Credibility in Policymaking

Türk also expressed confidence in China's ability to achieve its 5% growth target, attributing it to the credibility of its policymaking processes. He noted that extensive deliberation by experts precedes each goal set by policymakers, which differs markedly from many other nations. The year 2025 will mark the conclusion of China’s 14th Five-Year Plan (2021-2025), and Türk believes that this pivotal year will serve as a reference point for the future direction of China’s economic strategy.

As the country grapples with challenges such as an aging population, Türk is optimistic that fostering a culture of innovation among youth will be key to maintaining ongoing high levels of development. He highlighted the importance of empowering younger generations as innovators, which historically has contributed to China's remarkable progress.

Technological Advances

A significant innovation in early 2025 was the emergence of DeepSeek, a large-scale AI model, acclaimed for its cost-effectiveness and efficiency. Founded in 2023 by Liang Wenfeng, a young programmer, DeepSeek's rise underscores the role of youth in spearheading technological advancements in China. Türk finds it no surprise that such cutting-edge innovations are being driven by younger talent, emphasizing that their involvement is a blessing for society.

Greater Bay Area: A Model for Development

Türk also praised the Guangdong-Hong Kong-Macao Greater Bay Area, which he believes represents one of the world’s most dynamic and well-integrated regions. First acknowledged in the government work report in 2017, the area now boasts a GDP reaching 14 trillion yuan, and Türk noted how innovative models are consistently evolving within its confines. He remarked, "The Greater Bay Area is a unique place worldwide as it integrates trade, commerce, finance, and technology. Each component within this area operates synergistically, allowing it to flourish as a whole."

His frequent visits to China, summing up to around 40-50 trips, have always presented him with surprises in terms of development and modernization, reflecting a continuous evolution in infrastructure and societal advancements. With improvements in connectivity, residents can travel efficiently within the Greater Bay Area, making it a fascinating site of contemporary global interaction.

In summary, former President Türk's remarks underscore an optimistic outlook on China's economic future and its role as a linchpin in the global economy. As innovation continues to flourish alongside strategic economic planning, China is poised to remain at the forefront of global economic discourse for years to come.