Editor's note:
As China's annual "two sessions" underway in Beijing, GDToday spoke to scholars and experts from different countries to grasp the latest socioeconomic progress of China and how the country navigates its way to seek high-quality growth on a global landscape in the new year through challenges and opportunities.
"I feel that it is a great achievement in an overall downturn in the global economy that China showed its commitment," said Alan Zhang, Research Associate at ICAS, in his recent interview with GDToday during China's annual two sessions, "and it showed its will to continue to sustain the world economy as the main global economic development powerhouse."
China's 5% GDP growth is a commitment to sustaining growth for the world economy
According to the government work report delivered by Chinese Premier Li Qiang on March 5, 2025, the country's total economic output reached 134.9 trillion yuan, breaking through the 130 trillion yuan mark for the first time. That marks a growth of 5% compared to the previous year. Moreover, China set its 2025 GDP growth target at around 5%.
At a time when the global economy is facing significant downturns, China has achieved the 5% GDP growth, marking a firm commitment to supporting global economic development.
Zhang mentioned that just a year ago, many renowned financial institutions had predicted that China would struggle to reach its 5% growth target, with some even forecasting lower rates. However, China has not only met this goal but has also demonstrated its strong commitment to sustaining both domestic quality of life and global economic growth, Zhang said.
China's future growth lies in producing high-quality goods for domestic and global markets.
In the government work report, China has clarified its will to pursue people-oriented macro policies and place a stronger economic policy focus on improving living standards and boosting consumer spending.
China will create a full range of new consumption scenarios to accelerate the growth of digital, green, smart, and other new types of consumption, aiming to unlock consumption potential in culture, tourism, sports, and other sectors.
Zhang further analyzed that China's future growth potential lies in producing high-quality goods for both domestic and international markets. Despite facing numerous trade challenges, especially with the United States, China continues to explore new opportunities in the global market.
"China is actually undergoing a lot of trade turbulence, likely to come in April between the US and China," said Zhang. "There are also lots of opportunities for China to continue to explore." With the world economy still properly recovering from COVID, there are many more countries opening up their economies to China by accepting more high-quality products from China, as he pointed out.
With more countries opening up to China and accepting its high-quality products, China is well-positioned to develop a high-quality export-driven economy. This shift from low-value-added to high-quality products is crucial for China's long-term economic health and its role as a global economic powerhouse.
Foreign investors reignite passion for China with a liberalized investment climate
In upcoming terms, China will ensure national treatment for foreign-funded enterprises in fields such as access to production factors, license application, standards setting, and government procurement.
Foreign investors will receive better services and support, and the launch of landmark investment projects will be expedited. These efforts are meant to make China a favored destination for foreign investment.
As for foreign investment, Zhang pointed out that although there are reports of some companies considering leaving China, this is a common phenomenon during economic transitions. He believes that as China continues to improve its investment environment, foreign investors will rediscover their enthusiasm for investing in China.
"You will see in the next five years or ten years that foreign investors are going to reignite their passion for China, especially after tasting the bitterness of investing in other economies that do not share the same scale or the same potential for growth," he commented on those companies retreating from China.
China's stronger input in EVs drives global green transition amid tariff pressure
Regarding China's electric vehicle industry, Zhang holds that the protectionist measures taken by the US and the EU are based on incorrect assumptions about overcapacity.
"That decision is by nature protectionist, and the reasoning behind it, citing 'overcapacity,' is highly inaccurate. China's EV production is far behind the total demand of the global EV market," Zhang explained. "And China has not completely fulfilled its own goal to transition into a full EV market."
He suggested that China and Europe have more reason to collaborate in the field of electric vehicles given their shared goals of energy conservation and environmental protection. In contrast, the US shows more protectionism in this area.
In 2024, China's achievement of 5% GDP growth is a testament to its global leadership and responsibility. As it continues to promote high-quality development and uphold the principles of free trade, China will undoubtedly play an even more crucial role in driving the future trajectory of the global economy.
Reporter: Guo Zedong
Video: Liang Zijian
Poster: Cai Junru
Editor: Ouyang Yan, Yuan Zixiang, James, Shen He
