China remains a crucial force for world economic growth

Editor's note: Liu Chunsheng, a special commentator on current affairs for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinion, and not necessarily the views of CGTN.

In the first half of 2024, China's economy continued its path of steady progress towards high-quality development, marking a new chapter of growth. Despite uncertainties in the world economic environment, weak global growth momentum, and the complexity of domestic structural adjustments, the Chinese economy maintained a stable growth rate and achieved significant improvements in quality.

China's GDP reached 61.68 trillion yuan (about $8.65 trillion), with a year-on-year growth rate of 5 percent in terms of comparable prices in the first six months of 2024. This growth rate surpassed that of other major economies globally, showcasing the resilience and potential of the Chinese economy. Against the backdrop of high-quality development, industrial upgrading in China has accelerated.

The value-added of industries above a designated scale increased by 6.0 percent, with the value-added of equipment manufacturing growing by 7.8 percent and high-tech manufacturing by 8.7 percent, outstripping the general industrial growth by 1.8 and 2.7 percentage points, respectively. This demonstrates the country's shift towards high-end, intelligent, and green-oriented manufacturing, enhancing new productive forces.

Representing emerging strategic industries, the new energy vehicle sector maintained strong growth momentum. Data reveals a significant year-on-year increase of 34.3 percent in the production of new energy vehicles, reflecting notable progress in China's new energy vehicle sector and the expanding market demand. The rapid development of new energy vehicles not only drives structural upgrades in the automotive industry but also promotes the widespread adoption of clean energy and the achievement of energy-saving and emissions-reduction goals.

Strategic emerging industries such as high-end equipment manufacturing and aerospace equipment manufacturing continued to grow. For instance, the value-added of aerospace equipment manufacturing increased by 10 percent, indicating significant advancements in China's high-end manufacturing sector, enhancing overall industrial competitiveness and technological levels.

New technologies such as big data and artificial intelligence have been widely applied across various sectors, giving rise to new consumption scenarios and business models. Trends like live-streaming e-commerce and instant delivery have boosted the rapid growth of online retail sales of physical goods, stimulating both consumer market prosperity and the deepening of the digital economy.

Clean energy production experienced rapid growth, contributing to positive advancements in energy conservation and carbon emissions reduction. In the first half of the year, the combined hydroelectric, nuclear, wind, and solar power generation of large-scale industries increased by 13.4 percent year-on-year with a rising proportion of electricity generation from these sources in large-scale industries.

Additionally, energy consumption per unit of GDP continued to decline, showcasing notable achievements in green development and laying a solid foundation for achieving carbon peak and carbon neutrality goals.

Across regions and sectors, the pursuit of high-quality development remains the primary objective, with efforts focused on driving momentum transformation, structural upgrades, and efficiency improvements. The emergence of new technologies, industries, formats, and models inject fresh vitality and impetus into economic development.

Sectors such as wholesale and retail, accommodation and catering, transportation, and information transmission witnessed significant increases in employment numbers, serving as vital areas for job creation. Moreover, with the rapid evolution of the digital economy and intelligent manufacturing, employment growth in high-tech industries and strategic emerging industries has been particularly notable, offering high-quality job opportunities in the employment market.

Amid a global economic recovery with weak momentum, China's foreign trade commenced strongly, with exports maintaining steady growth. In the first half of the year, the total volume of imports and exports reached 21.17 trillion yuan, marking a 6.1 percent year-on-year increase, with exports reaching 12.13 trillion yuan, up by 6.9 percent.

The exports of private enterprises surged by 11.2 percent, accounting for 55 percent of the total volume, a 2.5-percentage-point increase from the same period last year. Machinery and electrical product exports increased by 8.2 percent, constituting 58.9 percent of total exports, suggesting ongoing optimization of China's export commodity structure.

China's trade patterns exhibit characteristics of regional differentiation, with steady export growth to ASEAN and faster export growth to regions such as Asia, Africa, Latin America, and countries participating in the Belt and Road Initiative. This indicates positive progress in diversifying China's market layout and providing robust support for the sustainable and stable development of foreign trade.

In response to the complex and changing domestic and international environment, China's macro policies continued to exert force, providing robust support for economic recovery. Financial and monetary policies worked in tandem, intensifying countercyclical adjustments to effectively mitigate downward economic pressures. Additionally, deepening supply-side structural reforms havefacilitated new advancements in high-quality development.

Looking ahead to the second half of the year, China's economic development will continue to face numerous challenges and uncertainties, such as the rising instability and uncertainty in the external environment, and insufficient effective domestic demand, among others. Nevertheless, the fundamental strengths of China's economy, coupled with favorable conditions for high-quality development, remain robust.

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