In the past few years, some developed countries have spread misinformation about China's economic development, calling China a "source of risk", which is completely untrue and may mislead the public. China has a super-large domestic market and the world's most complete industrial chain, with remarkable achievements in high-quality development and huge potential for economic development.
Economic performance in 2023.
Since last year, against the backdrop of a sluggish world economic recovery, China's economy has continued to show resilience, with a number of indicators stable and improving. In 2023, China's GDP will grow by 52%, which is higher than most major economies.
In November, the output value of equipment manufacturing and high-tech manufacturing above designated size increased by 9 percent year-on-year8% and 62%。At the same time, the country actively promoted industrial transformation and upgrading, and the output of new energy vehicles and solar cells increased by 35 respectively6% and 445%。China is committed to building advanced 5G networks, and as of the end of December last year, China had successfully built nearly 3.4 million 5G base stations.
In terms of foreign imports, although the year-on-year growth rate of China's imports and exports slowed down from June to September, it still plays an important role in the global industrial chain and chain. In the first 11 months, the proportion of China's total imports and exports was 648%, an increase of 1 percentage point year-on-year, and the structure was significantly optimized.
China is also stepping up its efforts to find more partners. Last year, China's imports and exports with countries and regions along the "Belt and Road" increased by 28%。It also promotes the export of high-tech products, not only promotes the development of upstream and downstream industries, but also helps to cultivate new momentum for foreign countries. For example, exports of mechanical and electrical products increased by 28%。
In addition, some foreign companies have shifted their investments out of China since last year. China's situation is not a sign of economic recession, as some Western countries have claimed, but a testament to China's progress in industrial optimization and technological upgrading.
The actual utilization of foreign capital in high-tech manufacturing industries such as electronic communications and medical equipment increased by 18%。In addition, in the past five years, China's return on outward direct investment has reached 9.%.1%, ranking first in the world. Many foreign business associations, including the American Chamber of Commerce in China, say the Chinese market is no longer an "option" but a "must" for foreign investors.
The International Monetary Organization and other authoritative institutions have fully affirmed China's economic achievements. According to the International Monetary Fund, China is expected to contribute one-third to global economic growth last year.
New kinetic energy. China's economy has entered a period of transition, and its economic development is facing a number of cyclical and structural problems, including insufficient effective demand, operational difficulties of some enterprises, and various risks. To nurture new drivers of economic growth and combat misinformation spread by advanced economies, China needs to do more on three fronts.
First, focus on scientific and technological innovation. This was underscored at the first economic work conference held in December. China will continue to promote the high-quality development of key manufacturing industries and enhance the resilience and security of the industrial chain. In addition, the state will be committed to comprehensively promoting "new industrialization" and accelerating the development of the digital economy and artificial intelligence technology.
Second, China should take measures to expand domestic demand. It is necessary not only to stimulate consumption, but also to increase investment with high returns, so as to form a virtuous circle in which consumption and investment complement each other.
China must continue to promote the recovery of consumption from the epidemic and form a new consumption pattern, focusing on increasing the income of urban and rural residents and expanding the middle-income group. In addition, in order to create a better investment and financing mechanism, China will promote cooperation with private capital, and encourage social capital to participate more in the construction of "new infrastructure".
The third is to promote reforms in key areas. China has made tremendous achievements in reform and opening up over the past 40 years. The challenge, however, is that reform has entered a "deep water" that requires the state to break down some of the traditional systems that hinder further economic development.
China will strengthen the reform of state-owned enterprises and empower private enterprises to develop, with the aim of establishing a unified national market. We should plan and implement a new round of reform of the fiscal and taxation system to fundamentally resolve the structural contradictions in economic development.
The author is a professor at the School of Economics at Renmin University of Chinese and a leading member of the China Macroeconomic Forum, a Beijing-based think tank.
This article was first published on the China Social Science Network.
These views do not necessarily reflect the views of China**.