China's 2024 Growth Target Explained
In a government work report presented to the national legislature on Tuesday, China has maintained its economic growth target at approximately 5 percent for 2024, mirroring the previous year's objective. This decision has garnered widespread optimism from experts and business leaders across the globe, who view it as a testament to China's commitment to high-quality development amid both domestic and international uncertainties.
Luis Fernandez, a senior researcher at the World Economic Research Center of the University of Havana, commended China's growth target, stating it aligns with the nation's high-tech and green economic development model, injecting vitality into the global economy. Meanwhile, Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, emphasized China's rapid technological advancements, positioning the country strongly on the global stage in the years to come.
To achieve the set growth target, the government work report underscores the modernization of the industrial system and the acceleration of new quality productive forces. Michael Schumann, head of the German Federal Association for Economic Development and Foreign Trade, hailed the concept of 'new productive forces' as a response to harnessing the potential of cutting-edge technologies like artificial intelligence for sustainable and environmentally friendly productivity.
China's prowess in technological innovation is evident in its 12th position on the Global Innovation Index 2023, making it the sole middle-income economy within the top 30. Yan Li, a senior lecturer at Nanyang Business School, predicts that with a focus on new quality productive forces, China will strengthen its position in the global industrial chain.
A key highlight of the government work report is the proposal to promote high-standard opening-up, aligning with international economic and trade rules. Specific measures to attract foreign investment include reducing the negative list for foreign investment access and relaxing market access in sectors such as telecommunications and medical care.
Executives from multinational corporations, including Panasonic and L'Oreal, have expressed their optimism about the Chinese market. Tetsuro Homma, Executive Vice President of Panasonic Corporation, praised China's desirable business environment, while Alexis Perakis-Valat, President of the L'Oreal Consumer Products Division, sees immense growth prospects in China's expanding middle and upper-middle class.
According to the International Financial Forum, China contributed 32 percent to global economic growth in 2023, solidifying its position as the largest engine of world development. The International Monetary Fund's research indicates that China's faster growth positively impacts other economies, with a one percentage point increase in China correlating to a 0.3 percent rise in global output on average.
Khin Maung Soe, former advisor of Myanmar Institute of Strategic and International, attributes global confidence in China to its economic strategic consistency. Similarly, Jean Christophe Iseux von Pfetten, chairman of the Institute for East-West Strategic Studies in Britain, emphasizes that China's decisions, such as strengthening the private economy, are not only welcomed by its citizens but also resonate positively with foreign entrepreneurs.
China's attractiveness to foreign investments, driven by its market size, growing middle class, and government support for key industries, underscores its commitment to sustainable growth and integration into the global economy, according to Joseph Mutaboba, a Rwandan expert in international relations and diplomatic affairs.
Source : SHINE
Editor : Ennio Colombo Giardinelli