China's 2024 APEC agenda: Driving regional growth and innovation

Editor's note: Yasir Masood (PhD) is a Pakistani political and security analyst, broadcast journalist, and strategic communication expert providing international relations insights for global media and think tanks. The article reflects the author's opinions, and not necessarily the views of CGTN.

As the Asia-Pacific Economic Cooperation (APEC) convenes for its 2024 summit, China stands at an ideal juncture with promising opportunities for mutual advancement alongside member economies. This year's APEC framework aligns closely with Beijing's economic aspirations and opens avenues for it to deepen its regional leadership through cooperative initiatives that address trade, technology, infrastructure, and environmental sustainability. With APEC's collaborative ethos, it can navigate the complexities of a shifting global economy while fostering regional prosperity. President Xi Jinping's participation further highlights China's unwavering commitment to the APEC platform and its dedication to solidifying regional cooperation.

Trade has always been at the core of APEC's mission, and China is well-positioned to benefit from the bloc's focus on enhancing economic exchange. Despite global uncertainties, APEC's anticipated 3.5 percent GDP growth in 2024 provides a stable foundation for expanded trade, supporting China's ambitions to widen market access and strengthen economic ties. Notably, the first quarter of 2024 witnessed a 3.9 percent increase in APEC economies' merchandise exports by volume and a 1.6 percent rise in value, setting a fertile ground for China's trade networks. As other APEC members pursue intra-regional trade growth, its commitment to stronger trade ties becomes increasingly valuable to the bloc's collective stability.

Beyond trade, investment in emerging sectors presents another critical area where China is poised to drive forward. With APEC's supportive framework, Chinese enterprises are encouraged to pursue international investments, particularly in high-demand sectors such as renewable energy and technology. For instance, its non-financial outward direct investment (ODI) experienced a significant 12.5 percent year-on-year growth, reaching $110.99 billion in the first eight months of 2024. This aligns with APEC's sustainability priorities, positioning Beijing as a key player in fostering mutually beneficial investment partnerships across the region.

China's rapid technological progress resonates with APEC's focus on fostering a digitally interconnected economy. Since 2018, the value of the APEC digital economy has surged, reflecting the region's demand for digital services – a demand that Beijing is well-equipped to meet. This growth allows it to expand its digital trade and integrate its technological innovations throughout Asia-Pacific. As its AI sector is projected to reach $154.80 billion by 2030 with a compound annual growth rate (CAGR) of 28.61 percent, APEC's technology collaboration policies offer it an avenue to drive industry-wide transformation across member economies. Since digital trade now represents 20 percent of intra-APEC trade, its technological advancements stand as a strategic asset in the region's digital future.

Infrastructure remains essential for regional connectivity and economic growth, and APEC's initiatives provide China with an expanded platform to advance its infrastructure projects. APEC's project funding pool, estimated at $19.5 million, supports projects aimed at enhancing connectivity and fostering sustainable development. This aligns closely with Beijing's ambition to expand its high-speed rail network to 50,000 kilometers by 2025, strengthening urban-rural links and promoting efficiency in transportation. With APEC's infrastructure priorities, China finds crucial support for its goals, boosting connectivity while contributing to the region's collective development.

On the renewable energy front, the leadership of China is well-established: it accounted for 60 percent of the world's added renewable energy capacity from 2023 to 2030, underscoring its commitment to sustainability. With a significant focus on green hydrogen, it invested over 600 billion yuan ($85 billion) in this sector during the first quarter of 2024. By extending these renewable efforts across APEC, it supports regional energy needs while aligning with global low-carbon goals, reinforcing the bloc's commitment to sustainable growth.

China's active participation in APEC's skill-building and educational initiatives is key to developing a workforce prepared for emerging industry demands. Through APEC, it can invest in digital literacy programs tailored to the youth and professionals who will spearhead the next wave of innovation. Particularly, it has launched a state-backed $40 billion fund to boost its semiconductor industry, signalling a commitment to technological self-reliance. Additionally, with robotics investment reaching around $14.6 billion by the end of the third quarter of 2024, China is positioning itself as a global leader in automation and workforce transformation.

As the 2024 APEC summit unfolds, China's engagement with the region reflects its broader vision for driving economic integration, advancing key infrastructure projects, fostering technological advancement, and sustainable growth, while its initiatives in digital economy, green energy, and workforce development serve as a model for future growth. With its continued leadership and collaboration, China is not only shaping its future trajectory but also contributing to the region's economic stability.

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