Why Chinese economy makes steady progress, has bright future

CHINA: AGAINST the backdrop of a complex and severe international situation and sluggish global economic recovery, the trend of China’s economic development is an important aspect that affects the world economy and attracts great attention.

Last year, China’s GDP exceeded RMB 126 trillion (US $17.7 trillion), growing by 5.2 per cent, ranking the top among major economies in the world, contributing one-third of global growth and remaining the world’s largest growth engine.

The 2024 Chinese government work report has set the economic growth target for this year at around 5 per cent, and the overall trend of economic recovery and long-term improvement remains unchanged. In the past decade, China has adhered to the new development concept of “innovation, coordination, green, openness, and sharing”, followed a high-quality development path, focused on top level design, and set sights on long-term economic development.

China’s economic development has shown the following highlights:

Firstly, the foundation for development has become more solid. China has historically solved the problem of absolute poverty.

Last year, the disposable income of Chinese residents increased by 6.1 per cent, faster than the GDP growth, and the growth rate in rural areas was faster than that of urban areas.

China has a huge market advantage, with a per capita GDP of over US $12,000 and a middle-income group of over 400 million people. Last year, the added value of China’s service industry accounted for 54.6 per cent of GDP, and the contribution of final consumption expenditure to economic growth exceeded 82.5 per cent.

The Communist Party of China (CPC) has imposed high pressure on corruption, built a new type of friendly and clean relationship between government and business, and set a more standardised, transparent and predictable environment for economic activities.

The “Belt and Road” initiative has created a new platform for international economic cooperation, injected new impetus into world economic growth, and expanded the space for its own economic development. China has carried out more than 3,000 projects in cooperation with co-developing countries, facilitating investment of nearly US $1 trillion.

Secondly, the competitive advantage remains significant. China’s economic development has significant institutional advantages. China adheres to the development and improvement of the socialist market economy, and through forward-looking economic policies and industrial layout, it is in a leading position in new economic formats such as new energy.

In 2023, the installed capacity of renewable energy reached 14.5 trillion kilowatts, accounting for more than 50 per cent of the total installed power generation capacity of the country, surpassing that of thermal power for the first time in history. China has the supply advantage of a complete industrial system.

The industrial system consists of 41 industrial categories, 207 job types, and 666 industrial subcategories, making it the only country in the world to have all the industrial categories listed in the United Nations Industrial Classification. China has the advantage of a large number of high-quality workers and entrepreneurs.

China has established the world’s largest public education system, with the number of graduates in science, technology, engineering, and mathematics steadily ranking first in the world.

By the end of 2023, China had more than 4 million effective invention patents.

Thirdly, China has been creating more opportunities for foreign-invested enterprises. China’s shift to highquality development offers a high-return market for foreign companies. In the past five years, the return rate of foreign direct investment in China was 9.1 per cent, much higher than that of European and American countries. Many foreign-invested enterprises continue to be optimistic about China by investing in China and deepening their efforts in China.

Last year, nearly 54,000 foreign-invested enterprises were established in China, an increase of 39.7 per cent year-on-year. China provides a fertile soil for foreign-funded enterprises to transit from “Made in China” to “Created in China”.

According to the World Economic Forum network data, of the 153 lighthouse factories representing the highest level of intelligent manufacturing and digitisation in the world, China has 62, ranking first in the world in terms of quantity.

Last year, the actual use of foreign investment in China’s high-tech manufacturing industry increased by 6.5 per cent, and more and more multinational enterprises are choosing to establish research centres in China. China continues to optimise the environment for foreign investment.

Last year, China formulated 59 policies and measures to optimise the environment for foreign investment, of which 38 have been implemented.

The high-quality development of the Chinese economy has provided sustained momentum for China-Tanzania cooperation. China has been the largest trading partner of Tanzania for 8 consecutive years, with a bilateral trade volume of US $8.78 billion last year, a year-on-year increase of 5.66 per cent. China is also the largest source of foreign investment in Tanzania.

Last year, large-scale investment projects such as the China-Tanzania Kibaha Industrial Park, East Africa Commercial and Logistics Centre, and the second phase of Maweni Cement Plant were successfully launched.

The construction of major projects such as the fifth and sixth lots of the Central Standard Gauge Railway, the Nyerere Hydropower Station, and the Magufuli Bridge by Chinese enterprises in Tanzania is steadily advancing, making important contributions to the improvement of Tanzania’s infrastructure and investment environment.

This year marks the 60th anniversary of the establishment of diplomatic ties between China and Tanzania, ushering in new opportunities for the development of bilateral practical cooperation.

Under the guidance of the head-of-state diplomacy, China will promote the continuous development of the China-Tanzania comprehensive strategic partnership and continue to benefit the two peoples with its own economic development.

• The writer is Chinese Ambassador to Tanzania.