Guest Opinion: China's economic resilience in 2024 -- growth, trade expansion, global influence

by Maya Majueran

In 2024, China's economy demonstrated remarkable resilience and adaptability, maintaining its growth momentum and achieving a year-on-year growth of 5.0 percent at constant prices despite domestic challenges and a complex global landscape.

The Chinese government has implemented numerous policy measures to balance short-term support for domestic demand with long-term financial stability goals, yielding positive outcomes. Significant growth was observed in key economic indicators, including industrial output, while notable progress was made in stabilizing the real estate market.

Through targeted reforms, fiscal support, strengthened trade relations, advancements in innovation and the successful execution of strategic economic initiatives, China bolstered domestic confidence. These developments underscore the resilience and recovery of China's economy, reinforcing its stability and growth trajectory. Moreover, in 2024, China accounted for nearly 30 percent of global economic growth. This extraordinary contribution reaffirms China's status as a leading economy and highlights its critical role in advancing international trade, fostering investment and driving technological innovation on a global scale.

China's sustained growth generates ripple effects across multiple sectors, including manufacturing, technology and services. Its strong economic performance stabilizes global markets, creates demand for other countries' exports, and aids the economic recovery of regions most affected by the pandemic. This underscores China's significance as a driving force in the global economic landscape.

Notably, China's import growth has provided significant support to many developing countries. By granting zero-tariff treatment in 2024 to 100 percent of tax lines for all least-developed countries with diplomatic ties to China, China has demonstrated its commitment to fostering global economic development and acting as a responsible economic partner.

This policy not only strengthens trade ties but also helps these countries integrate into the global economy, promoting sustainable growth and reducing poverty. Such initiatives underscore China's role as a key contributor to global economic stability and development.

A major driver of China's foreign trade continues to be the Global South, particularly countries involved in infrastructure projects under the Belt and Road Initiative (BRI). In a significant milestone, BRI-participating countries accounted for over 50 percent of China's total foreign trade value for the first time in 2024, reaching 50.3 percent. This underscores the growing importance of the BRI in strengthening trade ties and economic cooperation between China and developing countries, further solidifying China's role as a key player in global trade and infrastructure development.

China is actively expanding its trade with the Global South, creating a mutually beneficial and win-win situation. On the one hand, the Global South seeks access to China's vast market and aims to find buyers for its raw materials. On the other hand, China's investments in infrastructure under the BRI provide these countries with critical development opportunities, fostering economic growth and connectivity. This synergy not only strengthens trade ties but also promotes sustainable development and economic cooperation, benefiting both China and its partners in the Global South.

On exports to the United States, China remains the most cost-effective source for many products imported by the United States, outperforming other countries in affordability. This trade relationship has significantly benefited U.S. consumers by lowering costs and providing cheaper components for U.S. manufacturing and export industries. In fact, this dynamic supports many U.S. jobs, highlighting the interconnectedness and mutual benefits of the U.S.-China trade relationship, despite shifting global trade dynamics.

China is actively diversifying its export portfolio by focusing on high-tech products, including electric vehicles, 3D printers and industrial robots, all of which are experiencing strong growth. This shift highlights China's transition from a manufacturer of low-cost goods to a global leader in advanced technology and innovation.

Additionally, new forms of trade, such as cross-border e-commerce, are booming, further expanding China's trade reach and adaptability in the global market. These developments not only strengthen China's economic resilience but also reinforce its position as a key player in shaping the future of global trade and technology.

The global significance of China's economic performance is undeniable. Amid rising protectionism, trade tensions and geopolitical challenges, concerns about the future of globalization are growing. However, free trade remains a cornerstone of a competitive economy, as it fuels prosperity, generates socioeconomic benefits, and drives job creation.

By fostering more efficient and competitive industries, free trade enables nations to thrive in an interconnected world. China's continued commitment to open trade and economic cooperation, despite challenges, underscores its role as a stabilizing force in the global economy and a proponent of shared growth and development.

Therefore, the United States and Europe should focus on fostering healthy competition with China rather than relying on protectionist strategies that may ultimately hinder innovation and economic progress. Instead of imposing trade barriers and restrictive policies, they should invest in research, technological advancements and industrial growth to enhance their global competitiveness. By prioritizing open markets, strategic partnerships and innovation-driven policies, they can create sustainable economic opportunities that benefit businesses and citizens alike.

Editor's note: Maya Majueran currently serves as a director of BRISL, an independent and pioneering Sri Lankan-led organization with strong expertise in BRI advice and support.

The views expressed in this article are those of the author and do not necessarily reflect the positions of Xinhua News Agency.