Amid numerous challenges faced by the global economy, China, as the world’s second-largest economy, continues to serve as an “anchor of stability” and “source of momentum” for global economic development, drawing widespread international attention. To assess China’s economic situation, one must adopt a comprehensive and dialectical perspective - considering both “form” and “trend,” focusing on both “quantity” and “quality,” and analyzing not only from a “longitudinal perspective” but also from a “cross-sectional perspective.”
China’s economy may experience some fluctuations in its “form,” but its overall “trend” remains positive. China benefits from the unique institutional advantages of the leadership of the Communist Party of China (CPC) and a socialist market economy, alongside its vast economic scale, market capacity, and industrial capabilities.
Its dual circulation model - where domestic and external economies interact positively - serves as a crucial foundation for steady and sustainable economic growth. China boasts a comprehensive industrial system, diverse types of enterprises, a high household savings rate, and strong adaptability to environmental changes and economic fluctuations - key factors contributing to the resilience of its economy. Last September, the Political Bureau of the Central Committee of the CPC decisively implemented a package of incremental policies, effectively boosting social confidence and driving a significant economic rebound.
China’s economy has achieved not only reasonable growth in “quantity” but also significant improvements in “quality.” In terms of total output, China’s GDP reached 94.97 trillion RMB in the first three quarters of 2024, an increase of 4.8% year-on-year. For an economy of China’s scale, an annual growth rate of around 5% equates to the expansion of an entire medium-sized economy.
In terms of quality, the operational efficiency of China’s economy continues to improve. High-tech industries have shown robust growth, and the development of new quality productive forces has accelerated. Urban employment remains broadly stable, with enhanced job security for key groups and rising wage levels.
Consumption has expanded, with emerging sectors such as debut economy, silver economy, and ice and snow economy injecting vitality into the consumer market. Additionally, the green and low-carbon industries are thriving. The clean energy sector has maintained rapid growth, with year-on-year increases of 30.3% in solar power generation, 13.6% in hydropower, and 10.9% in wind power. Meanwhile, the production of new energy vehicles surged by 31.8%, underscoring the momentum in sustainable development.
China’s economic performance stands out both in vertical and horizontal comparisons. Amid a global backdrop of weakened growth momentum, China’s economy is incomparable across the world. Vertically, China’s GDP in the first three quarters of 2024 grew by nearly 3.7 trillion RMB year-on-year, with quarter-on-quarter growth maintaining a positive trajectory for nine consecutive quarters.
Horizontally, in the same period, the United States recorded an annualized GDP growth of 2.8%, while the Eurozone and the EU both grew by 0.9% year-on-year, and Japan achieved a mere 0.2% quarter-on-quarter growth. Compared to developed economies grappling with high inflation, stagflation, and recessionary pressures, China’s steady growth rate of around 5% showcases remarkable stability and resilience, with its economic expansion still ranking among the world’s leaders.
Amid the backdrop of multiple global economic uncertainties, the world is paying closer attention to and expressing greater confidence in China’s economy, with high expectations for China to play a key role in building a more inclusive and resilient global economy. According to forecasts, China will remain the largest contributor to global economic growth over the next five years, with its contribution rate exceeding the combined total of G7 nations.
Recently, leaders from China’s neighbouring countries and the business community have expressed optimism about Chinese economic prospects. Several international organizations and investment institutions have raised their growth forecasts for China, while numerous multinational corporations have demonstrated their confidence in China’s economy through concrete actions.
Last October, Goldman Sachs revised its forecast for China’s 2024 economic growth from 4.7% to 4.9%. Last November, Singapore’s Senior Minister Lee Hsien Loong stated that “China’s economy still has significant growth potential.” Last December, global pharmaceutical giant Sanofi announced a 1 billion euros investment to build a new insulin production facility in Beijing’s Yizhuang district. According to data from China’s Ministry of Commerce, 46,893 new foreign-invested enterprises were established nationwide from January to October 2024, marking an 11.3% year-on-year increase.
China’s economic development offers market potential and innovation vitality to neighbouring countries. With a population exceeding 1.4 billion and more than 400 million middle-income individuals, China boasts the world’s largest and most lucrative consumer market. Beyond providing market opportunities, China’s technological innovations are increasingly “going global”, benefiting neighbouring nations.
China’s 5G advancements support telecommunications and mobile internet infrastructure in multiple countries. China has established efficient production systems for solar energy equipment and electric vehicles, significantly reducing the cost of green and low-carbon transitions for neighbouring countries.
The Bei Dou Navigation Satellite System plays a crucial role in fields such as smart transportation and marine fisheries across the region. By advancing its development, China provides “stability” as a foundation and “momentum” as a driving force for its neighbours. Through fostering new quality productive forces and pursuing high-quality development, China injects fresh impetus into the regional and global economies.
This year, Pakistan’s economy has shown a sustained recovery and positive momentum. In the 2024-2025 fiscal year, Pakistan’s GDP growth has rebounded from negative growth in the previous year to 2.4%. In the first four months of the fiscal year, foreign investment and goods exports increased by 32.3% and 13.5% year-on-year, respectively. Meanwhile, the Consumer Price Index in November reached its lowest point in 46 months, and foreign exchange reserves hit a two-year high.
These achievements create new opportunities and inject fresh momentum into economic cooperation between China and Pakistan. China is willing to work with all sectors of Pakistan to ride a wave of China’s economic development, write a new chapter of practical cooperation, and contribute to building a closer China-Pakistan community with a shared future in the new era. Together, the two countries will continue to enrich the vivid practice of high-quality Belt and Road cooperation.
Copyright Business Recorder, 2025
The writer is Consul General of China in Karachi
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