--By Consul-General You Wenze, published on Cape Times, May 30

Amid slowing world economic growth and significant external uncertainties, China’s economy made a good start this year. According to data released by the National Bureau of Statistics (NBS) of China in April, GDP grew by 4.5% in the first quarter year-on-year, 1.6 percentage points higher than the previous quarter. Market confidence picked up significantly, consumption and investment bounced back stronger, and employment and prices remained stable overall. 

This speaks to the remarkable resilience, potential and vitality of the Chinese economy as well as the sound fundamentals sustaining long-term economic growth, and shows the vibrancy of China’s economy in its spring.That beat previous forecasts by many institutions.The country's optimized COVID-19 prevention measures are credited to this growth

Data from the Ministry of Commerce of China showed that foreign direct investment in the Chinese mainland, in terms of actual use,  reached 499.46 billion yuan ($71.36 billion) in the first four months of 2023, growing 2.2 percent on a yearly basis. The manufacturing sector attracted 130.05 billion yuan ($18.43 billion) of global capital between January and April, up 4.1 percent year-on-year.

Specifically, foreign investment in high-end manufacturing surged 37.1 percent year-on-year during the four-month period, while investment in high-end technology services rose 6 percent on a yearly basis.

Analysis shows that the current recovery is driven by two main forces: firstly, the lagging effect of policies in 2022; the second is the release of endogenous power after the impact of the pandemic has significantly subsided. At present, the driving force of economic growth is still strong, and there is still some room for endogenous economic recovery.

With the accelerated recovery of the domestic economic cycle, the process of resuming work and production for enterprises has accelerated, and industrial production continues to recover.

As the economic recovery gains traction, investment banks and international organizations have upgraded China’s growth forecasts for this year. The International Monetary Fund (IMF) said in its World Economic Outlook that China is “rebounding strongly” following the reopening of its economy. The country’s GDP will grow 5.2% this year and 5.1% in 2024, it predicted.

China is committed to reform and opening-up and will never close our door to the world. We are ready to work together with all countries that wish to pursue win-win cooperation with us for global prosperity and common progress. 

The positive momentum of China’s economic recovery means more opportunities for the world. In the first quarter, China’s trade with ASEAN, African, and Latin American countries grew by 16.1%, 14.1%, and 11.7% year-on-year respectively. Trade with countries along the Belt and Road and RCEP members increased by 16.8% and 7.3% respectively. The 133rd Canton Fair, which is fully offline this year, attracted buyers and exhibitors from 226 countries and regions, setting new records in terms of exhibition area and the number of exhibitors. The IMF’s latest World Economic Outlook estimates that the Chinese economy will contribute more than a third of global growth this year.

China will continue to advance high-quality development, expand high-level opening-up, share the progress of Chinese modernization with the rest of the world, and inject fresh impetus into the world economy.

In the next stage, China will adhere to the general tone of the work of steady progress, implement the new development concepts in a complete, accurate, and comprehensively, accelerate the establishment of a new development pattern, deepen reform and opening up, and give full play to policies of the combination of effectiveness and stimulation of the vitality of the operating entity, actively restore and expand demand, accelerate the construction of a modern industrial system, promote the effective improvement of the economy and achieve reasonable growth in quantity, and focus on promoting high -quality economic development.