China's Economy Sustains a Favorable Development Trajectory

It is important to recognize that the problems and worries China faces are all part of the development process. China's development is still underpinned by a good foundation and many favorable conditions.

Increasingly evident institutional strengths

Since the 18th CPC National Congress in 2012, China has continued to sustain the two miracles of rapid economic development and long-term social stability, while steadily modernizing its system and capacity for governance. Amid a grave and complex external environment, the socialist system's strength of being able to mobilize resources to accomplish major endeavors has become more apparent. With our high-standard socialist market economy improving continuously, the Chinese economy has demonstrated formidable resilience against risks and challenges and is well-placed to keep generating powerful momentum for high-quality development.

More solid material foundations

China possesses the world's most complete industrial system, with the value-added in the manufacturing sector accounting for approximately 30% of the global total, maintaining the largest scale in the world for several years in a row. China has steadily enhanced its ability to ensure the security of food, energy, and other resources, as well as critical industrial and supply chains. It has established the world's largest high-speed railway network, expressway network, and cluster of world-class ports, along with the world's largest and most advanced 5G network. Additionally, with its extensive data resources and diverse application environments, China is poised to drive forward the digitalization of traditional industries and the rapid development of emerging ones.

Growing development vitality

With a population of over 1.4 billion and a middle-income group of over 400 million, China stands as a vast market with the greatest potential for growth in the world. The potential offered by people's needs in clothing, food, housing, transportation, and cultural pursuits is immense. There remains substantial room for investment in areas with shortcomings, at weak links, and in opening up new industrial areas and arenas. Coordinated development between new industrialization and new urbanization will push demand to expand. Through the application of reform-driven thinking and innovative approaches, and by harnessing the sheer scale of our market and our complete industrial system, we can undoubtedly continue to unlock the potential and vitality of China's economic growth.

Considerable space for regulatory policies

Since the 18th CPC National Congress in 2012, through the process of effectively confronting a range of difficulties and challenges, China has gained rich experience in macroeconomic regulation, and has refined regulatory systems and augmented its regulatory toolkit. China's government debt levels are notably lower than those of other major world economies, and inflation has remained low in recent years. This has created ample room for implementing a proactive fiscal policy and a prudent monetary policy. In addition, China's savings rate is much higher than the global average, providing a solid foundation for further investment expansion.

Editor: Jiang Wenyan