The theory of “China’s collapse” usually rises every once in a while, when Western politicians and media outlets try to discredit China’s economy. Their “cognitive war” against China is nothing but a distorted picture that only exhibits the biased view of Western media outlets about China. Actually, China has amazed the whole world with its astounding economic performance over the years.
Amid the global economic slowdown, China was able to sustain a rate of growth that many Western countries can only dream about. China’s economic performance in 2023 was positive when the very challenging global context is put into consideration. Sustained policy support and deeper structural reforms had revived China’s growth momentum. However, since early 2023, Western politicians and media have been criticizing China’s economy by claiming that it is collapsing on multiple fronts.
According to economic experts, when the people of a country start spending less money, the country’s economy starts to falter. Experts say that the average age of China’s population has increased, which is not good news for the country’s economy. Western media outlets have gone a step further, claiming that the Chinese people have become more frugal in spending since the COVID-19 pandemic. Hence the purchase rate is decreasing which is generally damaging the country’s GDP and economy.
However, this far-fetched economic explanation does not accurately portray the development and vitality of the Chinese economy. If we look back at 2023, China’s economy has successfully navigated economic headwinds and is on track to achieve higher economic growth. According to data from China’s National Bureau of Statistics, China’s GDP exceeded 126 trillion yuan ($17.51 trillion) in 2023, an increase of 5.2 percent over the previous year, higher than the global growth rate of about 3 percent.
On the other hand, the world’s largest economy, the United States, grew by 2.5 percent in 2023. Last year on August 10, U.S. President Joe Biden called China’s economy a “ticking time bomb” because of economic challenges including weak growth. Unfortunately, the Biden administration and Western media looked at China’s remarkable achievements in economic and social terms through a clouded lens. If we look at China’s economic performance in 2023, “China’s economic growth was about 1.5 times that of the U.S. and about 16.5 times that of the Eurozone”, according to an article published on The Global Times on March 7, 2024.
Moreover, in contrast to U.S.-led protectionism and unilateralism, China has emerged as the most attractive destination for global investors among developing countries due to its large market, strong industrial chain resilience, new business models and emerging innovation ecosystem. Facts have proved that China is a true major supporter of multilateralism. As one of the world’s most open economies, China’s strong trade relations with the rest of the world are the source of the strength and success of its economic performance.
Instead of promoting the “China collapse” theory, the U.S. would be better advised to rescue its faltering economy as American businesses, farmers and consumers are suffering because of its tariff war with China.
As the morning shows the day, the consumer market during the past Spring Festival holidays embodies the vitality of the Chinese economy and provides warmth to the sluggish global economy. Facts or data may sound dull but the truth is that the growing number of passenger trips has once again proved that the Chinese economy has warmed up in various aspects. The 40-day-long Spring Festival travel rush from January 26 to March 5 witnessed an estimated 9 billion passenger trips.
The huge volume of trips and consumption during the Spring Festival holidays has affirmed the fact that Chinese people’s living standards have risen step by step which is painting a rosy picture of China’s economy. During the eight-day holiday from February 10 to 17, China saw 474 million domestic trips, up 34.3 percent year on year and domestic tourism revenue was 632.7 billion yuan (about $89.07 billion), a 47.3 percent year-on-year increase. More importantly, Chinese tourists stimulated the global economy by visiting more than 1,700 cities around the world in this period, thus giving a strong rebound to international tourism. In addition to travelling, this Chinese New Year holidays attracted 163 million movie-lovers totaling 8.02 billion yuan, setting a new record in history during the Spring Festival.
Undoubtedly, the afore-mentioned data are the fitting reply to those Western politicians and media who claim that the Chinese people are becoming more reluctant to spend. Furthermore, the increase in tourism and consumption speaks to the Chinese passion for life and confidence in China’s development, and gives the world a sense of strong momentum in China’s economic recovery which matters most to the world economy.
Since China’s economy, the world’s second-largest economy, is closely related to the prosperity of the world, the global community kept an eye on Chinese Premier Li Qiang’s annual Government Work Report which was delivered during the second session of the 14th National People’s Congress (NPC), China’s national legislature on March 5, 2024.
As China seeks to play a greater international role, Premier Li sketched China’s economy for 2024 with a GDP growth target at around 5 percent, the creation of over 12 million new urban jobs, growth in personal income in step with economic growth, surveyed urban unemployment rate of around 5.5 percent, projected fiscal deficit-to-GDP ratio at 3 percent, and support of the development of “new quality productive forces”. All these measures will lend credence to China’s confidence in the economic recovery this year.
More importantly, all market access restrictions on foreign investment in manufacturing will be abolished, and market access restrictions in services sectors, such as telecommunications and healthcare, will be reduced, according to the Government Work Report. “We will ensure the overall stable performance of foreign trade and foreign investment and foster new strengths in international economic cooperation and competition,” Premier Li said. China’s opening up has made the country highly attractive to foreign, private and state-owned enterprises for business development.
Over the years, China’s economic performance has been providing strong momentum to the global economy. In late January, the International Monetary Fund (IMF) revised upward China’s economic growth forecast for 2024 by 0.4 percentage point to 4.6 percent. The IMF believes that every 1 percentage point growth in China’s economy will boost the growth of other countries by 0.3 percentage points, and the country will remain the main contributor to global growth in 2024. China’s 2024 economic growth target of around 5 percent means it will be one of the most dynamic economies in the world and will make a major contribution to global economy.
Over the past few decades, China has greatly improved its business environment through stable economic recovery, long-term economic prospects, and unwavering reform and opening-up efforts. China’s high-quality development is crucial to the well-being of the world. It is hoped that China, as a responsible global power, will introduce more new policies and new measures to accelerate the economic development of not only China but also other countries and regions around the world. The vibrancy and resilience of China’s economy cannot but be applauded.
The article reflects the author’s opinions, and not necessarily the views of China Focus.
