Some experts believe that China’s annual gross domestic product (GDP) growth is often underestimated both domestically and internationally. They assert that the country’s burgeoning technological innovation and expanding domestic consumption are poised to fuel sustainable economic growth.
China has set an economic growth target of around 5 percent for 2023, according to a government work report delivered during the opening of the National People’s Congress earlier this year.
In a recent debate show “Talking China,” Li Cheng, founding director of the Center on Contemporary China and the World at the University of Hong Kong, dismissed concerns that the 2023 GDP target is overly ambitious.
He noted that China’s GDP grew by 5 percent year on year in 2022, a performance he described as “very impressive,” surpassing other major economies such as the United States, Japan, and Germany.
“But more importantly, if we look at the past couple of decades or even longer, I think experts, both domestic and foreign, usually tend to underestimate rather than overestimate China’s annual growth rate,” Li emphasized.
Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China, echoed this sentiment during the same program. He suggested that if China achieves a GDP growth of around 5 percent this year, it could contribute up to 35 or even 40 percent of global economic growth.
“This is the third consecutive year that China has set its GDP growth target at around five percent,” Wang noted. He acknowledged the “significant pressure” on China to meet this target, particularly in light of external factors like tariffs and trade obstacles.
“However, these challenges can be overcome,” Wang stated, citing China’s robust economic stimulus policies. He highlighted that China has set its deficit-to-GDP ratio for the year at around 4 percent, an increase of one percentage point over last year.
Wang also stressed that China’s efforts in boosting innovation and domestic consumption will underpin the economy’s sustainable growth. “The momentum from technological advancements and a thriving consumer market will drive China’s economic resilience,” he added.
