Photo: CFOTO/NurPhoto/AFP
Eurasia
03/03/2025 18:38
In an in-depth analysis, Xinhua critiques biased Western reports portraying China’s economic downturn while presenting evidence of the country's steady expansion, technological advancements, and increasing global investment appeal.
Steady economic growth
China’s economy expanded by 5 per cent in 2024, reaching a record 134.91 trillion yuan (18.81 trillion U.S. dollars). This rate significantly outpaced the U.S. economy’s 2.8 per cent growth, undermining claims by American media that China is in crisis while the U.S. prospers. Although China faces challenges in its property market and local government debt, the government has implemented effective policies to stabilize the economy.
Key economic indicators showed substantial improvement by the fourth quarter of 2024. Grain production reached an all-time high of 706 million tons, while the secondary and tertiary industries grew to 49.2 trillion yuan (6.6 trillion dollars) and 76.6 trillion yuan (10.5 trillion dollars), respectively. Employment and prices remained stable, with urban unemployment falling to 5.1 per cent and the national Consumer Price Index rising by just 0.2 per cent year-on-year.
Innovation and green technology as drivers
China's future economic expansion is driven by technological advancements and green development. The country ranked 11th in the Global Innovation Index in 2024 and led the world in science and technology clusters, surpassing the U.S. in this area. Research and development (R&D) spending increased by 8.3 per cent to 3.61 trillion yuan (495.5 billion dollars), making China the second-largest R&D spender worldwide, ahead of the European Union average.
Green energy remains a top priority, with clean electricity generation from hydropower, nuclear, wind, and solar reaching 3,712.6 billion kilowatt-hours, a 16.4 per cent increase from the previous year. China is advancing its carbon reduction efforts through improved industrial efficiency and cleaner transportation. It has also met 126 targets from the UN’s 2030 Sustainable Development Agenda ahead of schedule.
Unwavering confidence
China continues its high-level economic opening by removing barriers to foreign investment. In 2023, it eliminated all restrictions on foreign manufacturing investment and streamlined market access, encouraging international businesses to expand operations in China.
Foreign companies remain confident in China’s economic prospects. Tesla, BMW, and other multinational corporations are increasing investments in electric vehicles, renewable energy, and advanced materials. A report by the American Chamber of Commerce in South China revealed that 58 per cent of foreign businesses rank China among their top three investment destinations, with 76 per cent planning reinvestment in 2025. AmCham South China members are expected to reinvest 14.59 billion dollars in China over the next three to five years, a 33.18 per cent increase from previous reinvestment levels.
Despite Western media's claims of China’s economic decline, global businesses recognize its potential. The article concludes by highlighting that China has transformed from merely a manufacturing hub into an innovation leader, shaping trends in artificial intelligence, digitalization, and sustainability. As Roland Berger’s global managing director Denis Depoux stated, China’s economy is poised for continued high-quality growth in 2025 and beyond.
