Editorial | China’s economy on right track but many challenges remain
In a highly unstable international environment, nation’s policymakers must ensure next five-year plan keeps country on upwards trajectory
The Chinese economy is in much better shape than many naysayers claim, but serious challenges remain. That’s according the latest economic “census” taken by the National Bureau of Statistics.
Facing up to the aftershock of the pandemic and an ongoing trade war initiated by the United States, the economy has adapted with key segments transformed over the past five years – the period covered by the bureau – to maintain a stable and progressive upwards trend. Ahead of his new year message, President Xi Jinping said economic growth in 2024 was expected to have met the target of around 5 per cent
Gross domestic product last year reached nearly 130 trillion yuan – no small achievement, given the hurdles confronted. From food security to national security, a strong economy with sustainable growth is needed to meet myriad external challenges, not the least an incoming US president famous for his hostile but erratic policies.
Developments in two sectors have been especially important: manufacturing and services. As American decoupling and European “derisking” threaten international trade, China must be prepared. It is essential to build reliable and resilient supply chains resistant to external shocks such as unpredictable US sanctions and tariffs.
So manufacturing no longer means “low-tech” products from the so-called world’s factory. Rather, from alternative energy to electric vehicles, the country has become a world-beating producer.
