China's three systematic initiatives drive healthy development of global economy

Editor's note: Dong Shaopeng is a senior research fellow at Chongyang Institute for Financial Studies, Renmin University of China. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for clarity and brevity.

On March 5, Chinese Premier Li Qiang delivered a government work report at the third session of the 14th National People's Congress, outlining the main targets for development in 2025, including a GDP growth rate of around 5 percent, a consumer price index increase of around 2 percent, and over 12 million new urban jobs. He emphasized that the government will "make macro regulation more forward-looking, targeted, and effective" and "shape positive public expectations". This sends a strong message to the world about China's commitment to high-quality and pragmatic development.

To begin with, China will continue to ramp up investment in scientific and technological innovation and industrial innovation, expanding the output of new quality productive forces to drive both economic growth and improvements in people's quality of life.

The efforts to promote scientific and technological innovation are primarily aimed at enhancing the quality of production and life. At the same time, cutting-edge technology symbolizes national strength and is directly tied to national security and development interests.

On one hand, China will focus on the global high-tech race, striving to advance and maintain a leading position in fields such as aerospace, biomanufacturing, artificial intelligence, big data, new materials, and green technology, while also strengthening fundamental research and building long-term scientific and technological competitiveness. On the other hand, the country will leverage scientific and technological achievements to transform traditional industries, accelerate high-quality development of key industrial chains in the manufacturing sector, and step up efforts to advance industrial foundation reengineering and major technology and equipment research. Under the AI Plus initiative, China will work to effectively combine digital technologies with manufacturing and market strengths. The country will support the extensive application of large-scale AI models and vigorously develop new-generation intelligent terminals and smart manufacturing equipment, including intelligently connected new-energy vehicles, AI-enabled phones and computers, and intelligent robots.

Looking ahead, firstly, China will increase investment in education at all levels and optimize institutional mechanisms to ensure a steady supply of technological and specialized talent, as well as talent in various other fields. A three-year action plan for strengthening education will be drawn up and implemented. In terms of scientific and technological investment, China will harness the advantages of its nationwide resource mobilization system, leveraging human, financial, and material strengths to drive breakthroughs in core technologies across critical sectors. The country will also accelerate R&D progress in cutting-edge and disruptive technologies, while fast-tracking the implementation and strategic planning of major science and technology initiatives. China will maximize the pacesetting role of leading high-tech enterprises, bolster enterprise-led collaboration between industries, universities, and research institutes, and provide institutional support for enterprises to participate in national decision-making on scientific and technological innovation and undertake major science and technology projects. The country will strengthen the protection and application of intellectual property rights, and make better use of financial resources and capital markets to provide stronger support for scientific and technological innovation.

Secondly, China will implement more proactive policy measures to boost consumer demand, strengthening the domestic economy and driving its expansion.

China is already the world's largest manufacturing powerhouse, having surpassed the United States in value-added manufacturing in 2010 and maintained the top position ever since. The country produces a wide range of products, spanning raw materials, consumer goods, mid- to high-end equipment, and more. China leads in output for more than 40 percent of the world's 500 major industrial products. Amid weakening global demand, it has become imperative for China to expand domestic demand, particularly consumer demand, to further amplify the value and scale of domestic circulation.

In fact, a significant portion of China's export products has been designed and manufactured to meet the needs of overseas consumers. However, as income levels of domestic residents rise and consumption patterns evolve, the demand for high-quality household products and daily necessities is expected to expand significantly. At the same time, modern service industries related to clothing, food, accommodation, transportation, healthcare, elderly care, education, and financial investment still have considerable room for improvement in terms of infrastructure, technology, systems, and management.

To address this situation, the report emphasizes measures such as "promoting personal income growth through a variety of avenues", "increasing the diversified supply of health, elderly care, childcare, and domestic services", "accelerating the growth of digital, green, smart, and other new types of consumption", and "improving the leave system and ensure its effective implementation to unlock consumption potential in culture, tourism, sports, and other sectors." These initiatives aim to unleash demand-side potential, achieving a high-quality match between supply and demand, and fostering a mutually reinforcing cycle of high-quality production and consumption. As a set of targeted measures to boost consumption are gradually implemented, both domestic investment and consumer demand will grow in scale and improve in quality.

Thirdly, China remains a staunch supporter of the global free trade system while leveraging its own high-quality development to counteract the impact of deglobalization and unilateralism, contributing to the stable growth of the global economy.

From an objective standpoint, the current pushback against economic globalization is closely linked to weakening global demand. Some countries that once held dominant positions in certain industries have lost their competitive edge due to policy missteps and shifts in the global industrial landscape. Therefore, they have switched to measures such as tariff hikes and trade restrictions, which have undermined the global free trade system. To tackle these challenges, China remains committed to open development and works with all countries and entities willing to engage in mutually beneficial cooperation to stabilize the import and export markets, encourage foreign investment, and continuously improve the business environment. At the same time, China will resolutely counteract any acts of unfair competition that disrupt the free trade system. On March 4, the United States once again imposed additional tariffs on Chinese exports, and China has already taken countermeasures.

China's ongoing efforts to expand its opening up and strengthen friendly international cooperation align with, rather than contradict, the opposition to trade protectionism and unilateralism. As a key engine for the global economy, China should steadily expand institutional opening up and take the initiative to open wider and advance unilateral opening up in a well-ordered way, working alongside other nations to undertake the shared responsibility of advancing economic globalization.