‘Opportunity China’ can spur momentum of global growth
The Government Work Report released at the annual gathering of the country’s top legislature on Tuesday has conveyed a message to foreign enterprises and investors that they should not miss the opportunities that China will continuously create in its pursuit of high-quality development.
The world economic growth momentum is insufficient, and many international institutions have forecast that global growth this year will be less than 3 percent. China has set its expected GDP growth target for the year at about 5 percent, which is the same as last year’s target. It is in line with external expectations and sends a positive signal to the world.
In 2023, China’s GDP grew by 5.2 percent year-on-year, as compared with the United States’ growth rate of 2.5 percent, the eurozone’s 0.5 percent, and Japan’s 1.9 percent. Taking into account the high base factor, the setting of the economic growth target for 2024 shows that the Chinese government is confident about the resilience and potential of the world’s second-largest economy.
The Chinese government has outlined 10 major tasks for this year in the Government Work Report, including vigorously promoting the construction of a modern industrial system, in-depth implementation of the strategy of rejuvenating the country through science and education, focusing on expanding domestic demand, and expanding high-level opening-up to the outside world. From these, people have a more concrete understanding of the “opportunities of China”.
The “new quality productive forces” mentioned in the report represent huge development potential and they will become a catalyst for economic growth, which means that China pays more attention to “innovation” in its development model. For example, the report outlined specific plans for the innovative development of emerging industries, future industries, and the digital economy. Some analysts have pointed out that industries such as new energy, the digital economy, artificial intelligence, high-end manufacturing, and medical health are currently the key areas for foreign investment in China.
Continued opening-up is another key message delivered in the report. From relaxing market access for service industries such as telecommunications and medical care, to expanding the catalogue of industries that encourage foreign investment, the report lists a number of measures to expand opening-up, boosting foreign enterprises’ confidence in the Chinese market and economy.
In the current context of intensified geopolitical conflicts and sluggish global economic recovery, it will not be easy for China to achieve its expected goals this year, and more efforts will be required. But as the report says, the upside still outweighs the downside.