Beijing, China — China’s economy showcased remarkable resilience in 2024, achieving a 5% annual growth rate that met the government’s target set at the year’s outset. This growth comes amidst the nation’s implementation of the dual circulation strategy, which emphasizes both domestic and international economic flows.
Boosting Domestic Demand
Despite facing various challenges, the Chinese mainland made significant strides in stimulating domestic consumption. A series of policy measures were introduced to enhance the purchasing power of low- and middle-income groups, expand service consumption, and rejuvenate the domestic market. These efforts culminated in a noticeable rebound in domestic demand during the fourth quarter, contributing to the overall economic stability.
Strong Export Performance
On the international front, China’s export market demonstrated strong resilience, with exports growing by 7.1% year-on-year. The country’s integral role in the global industrial chain and its competitive advantages helped sustain this growth. Foreign trade continued to be a significant contributor to the development of the Chinese economy.
Emerging Industries on the Rise
While traditional industries such as real estate and steel showed signs of stagnation, emerging sectors thrived. Industries like semiconductors, smartphones, shipbuilding, drones, electric vehicles, and new energy experienced robust growth. This shift indicates progress in China’s industrial restructuring and transformation towards high-quality development.
Looking Ahead to 2025
Despite the successes of 2024, challenges loom on the horizon. Global economic growth is projected to slow down in 2025, potentially reducing international demand for Chinese goods. Additionally, new tariff measures from the European Union and the United States on products like semiconductors and electric vehicles could impact exports.
To navigate these challenges, the Chinese mainland plans to focus on boosting consumption, improving investment efficiency, and expanding domestic demand. Policies aimed at increasing incomes and reducing burdens for low- and middle-income groups are set to continue. There’s also an emphasis on technological innovation to drive new productive forces and build a modern industrial system.
Commitment to Open Trade
China remains committed to expanding high-level opening-up and stabilizing foreign trade and investment. The government aims to enhance free trade zones and promote the internationalization of the Chinese economy. This openness is seen as a defining feature that will enhance China’s influence in global economic governance.
As 2025 approaches, China’s focus on innovation, domestic consumption, and openness positions it to continue its path of steady economic development, despite external uncertainties.
