China's Economic Confidence: A Commitment to Global Growth and Openness

On December 11, 2024, significant leaders from international economic organizations gathered in Beijing for a pivotal dialogue aptly named the "1+10" discussion. This assembly served as a platform for Chinese President Xi Jinping to articulate his nation's renewed economic confidence and its commitment to remaining a crucial global growth engine.

The Engine of Global Economic Growth

During the meeting, President Xi underlined China's impressive economic achievements amassed over four decades of rapid development, indicating the country now plays a pivotal role in world economic dynamics. According to Xi, China contributes approximately 30% to the global economic growth landscape, asserting a notable position that surpasses any individual contribution from the G7 nations. A World Bank report from 2022 corroborated this claim, stating that between the years 2013 and 2021, China accounted for an average of 38.6% of the world's economic growth. This statistic establishes China not only as a key player but as the leading driver behind the recent global economic advancements.

With a reported GDP of 94.97 trillion yuan (about $13.09 trillion) for the first three quarters of 2024, and a year-on-year growth of 4.8%, Xi conveyed optimism regarding China's ability to meet its economic targets for the year.

Expanding Openness and Collaboration

In his speech, Xi made it clear that China's strategy moving forward includes a substantial expansion of its openness to the global market. He pledged to align with high-standard international trade protocols to cultivate a business environment that is not only market-oriented but also law-based and internationally inclusive. Such initiatives, he highlighted, aim to accelerate global economic growth and foster interdependence among nations.

Xi also noted the successful evolution of the Belt and Road Initiative (BRI) over the past ten years, proclaiming it as a means to enhance shared development. China has signed BRI collaboration agreements with over 150 countries and 30 international organizations. The initiative has facilitated the establishment of around 17,000 overseas Chinese enterprises within BRI-participating nations and led to a substantial direct investment stock exceeding $330 billion. Furthermore, data from the Ministry of Commerce shows that these projects have generated 530,000 local jobs, underscoring the importance of mutual growth.

Building a Fair Global Economic System

During the discussions, Xi addressed various challenges that the international community is currently facing, notably emphasizing the dangers of economic decoupling and protectionist approaches that disrupt trade. He called for advanced cooperation among countries in areas like digital economies, artificial intelligence, and low-carbon technologies, while emphasizing the need to enhance the flow of knowledge and technology across borders to nurture new economic growth channels.

Xi criticized strategies that promote isolationist policies and warned that such tactics could create self-harm and discord among nations. As turmoil arises from rising protectionism and geopolitical discord, China's response has been to continue integrating its economy with the global market. The proactive implementation of the new Foreign Investment Law in 2020 has marked a crucial step in this journey, enhancing protections for intellectual property and ensuring that foreign entities operate on even ground within China.

Additionally, recent years have seen China relax restrictions on foreign investments in various sectors, including financial services, resulting in increased opportunities for foreign players in banking, securities, and insurance markets. This liberalization serves as a mark of China's commitment to fostering a more inclusive global economic landscape that is fair and equitable for all participants.

Addressing China-U.S. Relations

With a clear stance on international cooperation, Xi also touched upon the significant relationship between China and the United States. He expressed China's willingness to maintain open channels of dialogue and expand avenues for cooperation despite existing differences between the two powers. He articulated a hope for a relationship characterized by stable, healthy, and sustainable development, cautioning against the futility of tariff wars and trade disputes.

President Xi's remarks resonate with a vision that transcends national boundaries, aiming for an interconnected global economy where collective progress is prioritized. His advocacy for collaboration rooted in openness and fairness highlights a commitment that could shape the trajectory of international economic relations in the coming years.

In conclusion, China's resurgence as a global economic powerhouse is intricately tied to its commitment to openness, cooperation, and shared growth. As the country navigates the complexities of global trade dynamics, it is clear that its role will be essential in fostering a resilient and inclusive world economy.