China’s economy: A brighter future ahead

Recently, the international community has been highly concerned about the development of the Chinese economy. Many international institutions, media outlets, and think tanks have published reports or commentary analyzing the economic situation in China. Among these analyses, there are both rational and objective voices, as well as narratives that paint a negative picture of the Chinese economy, such as “the end of the rise,” “foreign capital flight,” and “Structural Problems”. However, the “China economic collapse theory” has long been proven to be a subjective assumption, and the resurgence of such views is driven more by political considerations than economic reality. So, what is the trend of China’s economy?

Economic data shows China’s Economy goes on a steady trajectory to further growth. As of 2023, China achieved a GDP exceeding 126 trillion yuan, a year-on-year growth of 5.2 percent. Compared to the growth rate in developed economies, 5.2percent growth rate is impressive. Urban employment has increased by 12.44 million, and the consumer price index has risen by 0.2 percent, maintaining a mild upward trend. The total import and export of goods reached 41.8 trillion yuan, and foreign exchange reserves exceeded 3.2 trillion US dollars by the end of the year.

China remains a promising land for global investment. Many foreign-funded enterprises continue to believe in China, invest in China and deeply cultivate in China. Last year, nearly 54,000 new foreign-funded enterprises were set up in China, up 39.7 percent year on year. Over the past five years, the return on foreign direct investment in China registered 9.1percent, higher than most parts of the world.

These data not only demonstrate that for China the momentum of long-term improvement will not change, but also the prospect that China, shifting from high-speed growth to high-quality development, will continue to move forward against the wind and waves by the propellant of her New Quality Productive Forces (NQPF).

The concept of NQPF was first conceived by President Xi Jinping last September and quickly became a buzzword. It is productivity led by technological innovation that breaks away from the traditional mode of growth and development pathway. Localities across China have turned to local strengths to boost their innovation capabilities, generating new industries, new business models, and new growth drivers.

Fruitful results achieved by localities may offer a glimpse into how China endeavors to cultivate NQPF by taking advantage of the latest round of technological revolution and industrial transformation, as well as China’s firm commitment to high-quality development driven by innovation.

In 2023, China’s contribution to global economic growth reached 32 percent, and has remained above 30 percent for 11 consecutive years, still the largest driving force for global economic growth. China has become the largest trading partner of more than 140 countries and regions, and the return on foreign investment in China is much higher than that in European and American countries. As the world’s second-largest economy, China is committed to expanding the convergence of interests with various countries, continuously promoting world peace and stability with its own new development, while bringing new opportunities to the world, fully demonstrating the responsible role of a major country.

It is worth mentioning that in recent years, practical cooperation between China and Uganda has achieved remarkable results. By 2023, our bilateral annual trade has climbed to $1.1 billion, partly due to China’s preferential policy to grant duty-free to 99 percent of Ugandan export products. Practical cooperation including the Entebbe-Kampala Expressway, the China-Uganda Friendship Hospital, the hydropower station, etc. has brought concrete benefits to the local communities. Moreover, CNOOC’s drilling and excavation program is progressing at a steady pace on the Kingfisher oilfield.

 The new session of the Forum on China-Africa Cooperation will be held in China in the autumn of this year, I believe that China and Uganda will take this opportunity to further deepen exchanges and cooperation through dovetailing jointly building the “Belt and Road” and the 2040 Vision of Uganda, and charter new waters of our bilateral relations.

In the era of globalization, the fate of all countries is closely linked. Speaking ill of China will only harm oneself, and misjudging China will only miss opportunities. The fact has proven that the “China economic collapse theory” is a self-defeating proposition.

Zhang Lizhong, Chinese Ambassador to Uganda.