China Reaffirms Its Economic Confidence as a Global Growth Engine

China's Economic Confidence and Global Growth

In a recent dialogue known as 1+10, prominent leaders from major international economic organizations commended China's substantial economic successes and reaffirmed their belief that the nation will continue to drive global economic growth. The meeting, attended by Chinese President Xi Jinping, showcased China's self-assured stance in the global economy, with promises to further open its market and provide development opportunities to the world.

A Primary Engine of Global Growth

President Xi, who also serves as the General Secretary of the Communist Party of China, highlighted the nation’s economic milestones achieved over the past four decades. Notably, China currently contributes to about 30% of global economic growth, cementing its position as a pivotal player on the world stage. In the first three quarters of 2024, China’s GDP reached 94.97 trillion yuan, reflecting a year-on-year growth of 4.8% at constant prices.

“China is fully confident that it will achieve its economic growth targets this year and will continue to be the largest driving force behind global economic development,” Xi remarked, referring to a World Bank report indicating that between 2013 and 2021, China accounted for an average of 38.6% of the global economic growth, surpassing the contributions from all G7 countries.

In efforts to promote a more open economy, President Xi pledged to adapt China's trade practices to align with global economic and business standards. He emphasized building a market-oriented, law-based, and internationally integrated business environment to foster cooperation in global economic growth.

Advancements Through the Belt and Road Initiative

Xi also noted significant advancements made through the Belt and Road Initiative (BRI), which aims to connect China with the global landscape. He called upon international economic organizations to actively participate in the initiative and support modernization efforts across nations. To date, China has signed cooperation agreements with over 150 countries and 30 international organizations under the BRI framework. By the end of 2023, Chinese companies had established 17,000 foreign enterprises in BRI countries, with foreign direct investments exceeding $330 billion, generating approximately 530,000 jobs in cooperation zones abroad.

A Call for Open Global Economic Systems

During the dialogue, Xi addressed pressing challenges faced by the international community, stressing the need for collaborative efforts to establish an open global economic system. He voiced strong opposition against protectionism and the fragmentation of global economic cooperation.

“Countries should prioritize innovation and harness opportunities in emerging fields such as the digital economy, artificial intelligence, and low-carbon technologies,” Xi urged, emphasizing the importance of cross-border flows of knowledge, technology, and talent as new drivers of economic growth.

Given the current headwinds of protectionism and geopolitical tensions, China is increasingly opening itself to the world. A pivotal measure was the introduction of the Foreign Investment Law in 2020, designed to enhance intellectual property rights protection and ensure a level playing field for foreign enterprises, promoting transparency and fairness in the business environment.

Furthermore, China has significantly eased restrictions on foreign capital within its financial services sector and is encouraging greater foreign participation in banking, securities trading, insurance, and asset management. The complete removal of foreign investment restrictions in the manufacturing sector and the launch of pilot projects in telecommunications and healthcare signal China’s commitment to creating a more inclusive and equitable global economy.

Strengthening China-US Relations

In discussing the importance of an open global economy, Xi also touched on China's relationship with the United States. He expressed China's readiness to engage in dialogue with the US government, expand cooperation, and bridge differences. “Trade wars and technological conflicts run counter to historical trends and economic laws, and there will be no winners from such approaches,” he stated.

By opening up and integrating further into the global market, China seeks to navigate through current challenges, reinforcing its stature as a leading force in driving global economic growth while maintaining cooperative international relations.