The latest data from China’s National Bureau of Statistics shows that the gross domestic product (GDP) in the first quarter of this year increased by 5.4 percent year-on-year, a quarter-on-quarter increase of 1.2 percent, exceeding expectations. This achievement is attributed to the continuous impact of macroeconomic policies, the accelerated release of innovation momentum and the strengthening of market resilience. Although the external environment has become more complex and severe, and the growth of domestic effective demand still needs to be consolidated, the long-term positive fundamentals of China’s economy have not changed, and the endogenous driving force of high-quality development continues to emerge.
The growth rate in the first quarter was higher than last year’s average growth rate of 5 percent, and higher than the same period last year, ranking among the top major economies globally and achieving a “good start.” International public opinion has generally highlighted that this growth was “beyond expectations,” and the world has once again seen the strong resilience and potential of the Chinese economy.
CNN noted that “China has posted unexpectedly strong economic growth,” considerably higher than the predicted expansion of 5.1 percent, which continued a recent run of strong export-driven growth observed at the end of 2024 and sent an upbeat message. Reuters said that this growth was underpinned by solid consumption and industrial output. Newsweek quoted analysts as saying that the Chinese economy would also be able to weather an oncoming trade war better than Washington suspects.
This achievement did not come easily. It is largely the result of sustained policy effects as well as the targeted and effective implementation of a combination of measures including tax and fee reductions, accelerated issuance of special-purpose bonds, equipment upgrades, and trade-in programs for consumer goods, which have successfully revitalized market vitality. At the same time, innovation has played an increasingly prominent role in driving the economy. In the first quarter, new energy vehicle production rose by 45.4 percent, and charging pile output increased by 26.3 percent, providing a strong boost to industrial growth. Furthermore, with local governments stepping up support for innovation, breakthroughs in cutting-edge fields like artificial intelligence and quantum technology have further strengthened market confidence. China’s economy is moving in a positive and forward-looking direction, which is not only a summary of past achievements but also a clear indication of the trajectory and trends in China’s economic curve within the framework of future development.
With a population of over 1.4 billion and a massive market, China has now surpassed $13,000 in per capita GDP and is entering a critical stage of consumption upgrading. The people-centered development philosophy has strongly resonated with the opportunities brought by consumption upgrading, creating vast opportunities for economic expansion. In the first quarter, total retail sales of consumer goods increased by 4.6 percent year-on-year, up 1.1 percentage points from last year’s annual figure. New consumer trends, such as the “holiday economy” and the rise of “Guochao,” or China chic, continue to unleash market potential. Meanwhile, China is actively shaping a new pattern for foreign trade, fostering a more diversified market. In the first quarter, exports to Belt and Road partners grew by 7.2 percent year-on-year. This indicates a reduced reliance on any single export market and a more stable foreign trade foundation.
More importantly, behind the figures for the first quarter lies a deeper truth: China’s economic progress is genuinely aimed at improving people’s lives. It demonstrates the country’s strong resolve to “focus on doing its own things well” amid the uncertainties of the global landscape.
In the first quarter, the per capita disposable income of rural residents witnessed a real growth of 6.5 percent, outpacing the growth rate of urban residents and reflecting the significant effectiveness of the rural revitalization strategy. The consumption structure of residents continues to optimize, with notable increases in spending in areas such as education, culture, entertainment, and healthcare, highlighting the people’s pursuit of a high-quality life. The social security system is continuously improving, providing a more solid safeguard for people’s livelihoods. The support of the people serves as the foundation of our confidence in facing various risks and challenges.
People’s stable expectations for the Chinese economy are rooted in China’s unique institutional advantages and internal driving forces, which have been formed through long-standing policy stability and positive fundamentals, and reinforced by the value resonance brought about by a win-win development logic.
From “building a moderately prosperous society in all aspects, with no one left behind” to “on the path to modernization, no one and no country should be left behind,” China is committed not only to focusing on its own development but also to ensuring that people in all countries can live better lives through common development.
The relentless pursuit of a beautiful vision signifies inexhaustible development momentum, providing the Chinese economy with greater vigor and dynamism to navigate challenges. The recent China International Consumer Products Expo and the Canton Fair have both drawn huge crowds, with participating companies reaching new highs, vividly illustrating the attractiveness of the Chinese market.
Historical experience shows that the Chinese economy has always forged new advantages in tackling challenges. The “good start” for the first quarter is not only a result of policy efforts but also an inevitable outcome of the combined effects of market vitality, innovation momentum, and institutional advantages. In the current situation, the Chinese economy’s ship maintains a firm direction and has ample momentum – responding to challenges with resilience and creating opportunities through opening up, allowing it to navigate rough waters and sail toward broader horizons. GT
