Xi Jinping, general secretary of the Communist Party of China Central Committee, presided over a meeting of the Political Bureau of the CPC Central Committee on Monday to analyze and research on the economic work of 2025. The meeting emphasized “the principle of pursuing progress while maintaining stability” next year. It urged “implementing a more proactive fiscal policy and a moderately loose monetary policy,” “expanding domestic demand on all fronts,” and “stabilizing the property and stock markets.” On the same day, Premier of the State Council Li Qiang held the “1+10” Dialogue with heads of major international economic organizations and they had an in-depth exchange of views under the theme of “Building Consensus on Development to Promote Global Common Prosperity.” These two significant meetings, held on the same day, not only set the tone for China’s economic development for next year by focusing on domestic situation, but also addressed global cooperation and challenges, drawing attention both at home and abroad.
The market has responded enthusiastically to these positive signals regarding China’s economy. The Financial Times reported that the news sent “stocks and bond prices higher,” and analysts described China’s latest announcement as “encouraging.” The leaders of the New Development Bank, the World Bank, the WTO and the IMF noted that China has taken measures and achieved remarkable results in promoting economic growth, improving the business environment and expanding opening-up to the outside world, bringing impetus and confidence to global economic growth. Amid geopolitical turbulence and challenges in global economic development and governance, China continues to contribute its strength to global economic growth with its policy stability, transparency, and certainty of its improving economy that benefit the world.
China’s series of policy “combinations” to support high-quality economic development have worked synergistically and delivered sustained results, boosting economic growth and market confidence. Institutions such as UBS and JPMorgan raised their forecasts for China’s economic growth rate in 2024. In the first three quarters of this year, China achieved a GDP growth rate of 4.8 percent, consistently ranking high among major economies globally. The employment situation has remained generally stable, and the latest manufacturing purchasing managers’ index remained in the expansion zone for the second consecutive month. At the same time, China has steadily advanced new quality productive forces, deepened reform and opening-up, effectively mitigated risks in key areas, and strengthened social welfare measures. The main goals and tasks for economic and social development in 2024 will be successfully accomplished. Whether considering short-term economic performance or long-term growth potential, it is clear that China remains a vital engine for global economic growth.
While anchoring its own development goals and trying to focus on doing its own work well, China has consistently committed to fostering an open, inclusive, and non-discriminatory environment for international economic cooperation. The regular dialogue between Chinese leaders and heads of major international economic organizations has been held for many years. From the earlier “1+6” Round Table Dialogue to the current “1+10” Dialogue, China’s role in the global economy has become increasingly significant, and its resolve to work with the international community to address global challenges has grown stronger. Whether in terms of expanded coverage of major institutions, or contributing to the deepening of the multilateral trading system, the “1+10” Dialogue is timely. It reminds the world about focusing on development and promoting openness and inclusivity. The IMF’s senior resident representative in China recently said China is set to maintain its position as the biggest driver of the world economy despite challenges. China is committed to building a more dynamic, open economic system and has become a significant driving force in the global open economy landscape.
On one hand, China is the primary trading partner for over 150 countries and regions, has ranked first globally in total goods trade for seven consecutive years, maintains its position as the world’s second-largest recipient of foreign direct investment, and has consistently ranked among the top three in outward direct investment for 12 years. The recently concluded China International Supply Chain Expo showcased the country’s strength and importance in “linking” the world. On the other hand, China’s openness index continues to rise, and the country is introducing more self-initiated and unilateral opening policies. For example, its unilateral zero-tariff treatment for 100 percent of the tariff lines of products from least developed countries with diplomatic ties with China has been widely welcomed. Additionally, the expansion of its “visa-free network” has become a dazzling “business card” of China’s deepened openness.
In the forecasts of international institutions for the global economy next year, “uncertainty” has become a theme. How should we address the uncertainties in the external environment? China’s answer is to stay unwavering in managing its own affairs, and bring new momentum and opportunities to the world through China’s new development.
Looking back at past moments when the global economy faced challenges and crises, China’s economic resilience – especially the transformation and innovative development of its manufacturing sector, as well as its open and transparent major policies and clear development path – has provided an important source of support for the global response to these challenges. China looks forward to once again working together with other countries to create an environment and conditions conducive to development, advance the improvement of the global economic governance system, and promote global shared prosperity.
GT
