by Yi Xin
In recent years, some people have been skeptical of China's economy, alleging that China's growth will end soon, or its economy is about to collapse. To their disappointment, China's economy has remained robust and resilient, continuing to grow despite many challenges from home and abroad. There are reasons for continued confidence in China's economic growth.
OUTPERFORMING EXPECTATIONS
In 2024, China's gross domestic product (GDP) grew by 5 percent year-on-year and reached 130 trillion yuan (17.8 trillion U.S. dollars) for the first time, showed official data. That means China successfully met the annual growth target of 5 percent set at the beginning of the year, remaining one of the fastest-growing major economies in the world.
Throughout the year 2024, China's labor market was active, and employment was generally stable. New employment in urban areas reached 12.56 million people, while the unemployment rate dropped to 5.1 percent, down by 0.1 percentage points. The housing market continued to bounce back thanks to the support of a series of new policy measures. In the fourth quarter, new commercial housing sales grew by 0.5 percent in floorspace or 1 percent in transaction volume.
As the second largest economy, China has continued to open its door wider to the world. By the end of 2024, it was the main trading partner of more than 150 countries and regions. Its total imports and exports reached 43.85 trillion yuan (6 trillion dollars), up 5 percent year-on-year.
The past year also saw China remove all restrictions on foreign investment in the manufacturing sector and shorten the negative list of market access. China's outbound foreign direct investment in non-financial sectors rose by 10.5 percent, adding up to 143.85 billion dollars.
WORK TO BE DONE
A few days before 2025, the World Bank raised its forecast for China's GDP growth in 2024 and 2025. While China has yet to announce its new growth target, the keynote of seeking progress while maintaining stability and promoting stability through progress is expected to stay, as indicated by the Central Economic Work Conference held last December.
Boosting consumption and shoring up consumer confidence remains an important job. To that end, a combination of existing and additional policies will come into play. The government will issue more ultra-long special treasury bonds to support equipment upgrades and consumer goods trade-in programs, initiated in early 2024. Coupons and subsidies are offered to consumers to replace or upgrade their out-of-date durable goods, such as home appliances, electronic devices and cars.
The Spring Festival season always provides a strong boost for consumption. During this year's eight-day holiday period, a spending spree was unleashed as many Chinese purchased festive gifts, traveled for family reunions, and flocked to tourist destinations and cinemas. To give you a rough idea of the festival boom, a record high of 9.51 billion yuan (1.3 billion dollars) in box office, and over 2.3 billion passenger trips across regions were recorded in the country in the eight days. This offers a glimpse into the Chinese people's potential consumption power.
The rise in demand will in turn push up production as well as R&D, innovation and technological advancements on the supply side, thus opening up more opportunities for the development of new quality productive forces.
Another major task is to keep the confidence of foreign investors. Is China still a preferred destination for investment? I'd suggest letting the investors come to their own conclusions.
Last December's Central Economic Work Conference underlined that China will expand voluntary and unilateral opening-up, and enhance institutional opening-up. In the service sector, China will carry out more pilot programs in such areas as telecommunications, health care and education.
China is also looking to further develop service trade, green trade and digital trade sectors. With a firm commitment to green and low-carbon development and strong capabilities in advanced technologies, China will continue to find the export of the "new trio" -- new energy vehicles, lithium batteries and photovoltaic equipment -- to be the locomotive for foreign trade.
No job is easy, but as more supportive policies are coming or paying off, China is on the right track to overcome challenges and sustain development. Its growth is nowhere near an end, nor is its economy nearing a collapse.
Editor's note: Yi Xin is a Beijing-based observer of international affairs.
The views expressed in this article are those of the author and do not necessarily reflect those of Xinhua News Agency.
