BEIJING, Feb. 27,
2025 /PRNewswire/ -- A news report from Beijing
Review:
Having reached its 2024 target, China is poised to continue promoting economic
growth by exploring new drivers, analysts said.
China's economy reached its
annual growth target for 2024, with gross domestic product (GDP)
expanding 5 percent year on year to reach 134.9084 trillion yuan ($18.5 trillion), according to data released by
the National Bureau of Statistics (NBS) at a press conference on
January 17.
In the third quarter of 2024, the Central Government introduced
a series of incremental policies to encourage consumption and the
creation of a more favorable business environment to boost the
economy, which played a key role in achieving the full-year target,
Kang Yi, Commissioner of the NBS,
told the press conference.
"The supporting policies stabilized the stock and housing
markets and boosted domestic demand. China's economy made a robust rebound in
2024," Xu Hongcai, Deputy Director of the Economic Policy
Commission at the China Association of Policy Science, told Beijing
Review. Xu noted that the quick ascent was aided by
better-than-expected export performance and growing investment in
hi-tech industries.
According to the statistics released by the General
Administration of Customs of China, China's import and export value reached
43.85 trillion yuan ($6 trillion) in 2024, a 5-percent year-on-year
increase and a new historical high. Exports totaled 25.45 trillion yuan ($3.5
trillion), up 7.1 percent year on year.
In 2024, multiple sectors were promoting the integration of
technological innovation and industrial innovation. Kang added that
the Global Innovation Index 2024, released by the World
Intellectual Property Organization, had ranked China 11th among the world's most innovative
economies, up one spot from the previous year.
The development of the country's new-energy industries also
achieved outstanding results in 2024. The greening of the energy
industry is accelerating, and the proportion of clean energy
generation is increasing. In 2024, hydropower, nuclear power, wind
power and solar power accounted for 32.6 percent of power
generation.
As of late December, the number of new-energy vehicles (NEVs) in
use in China had reached 31.4
million, a 260-fold increase over the past decade, the Ministry of
Public Security said on January 17,
attributing the growth to improved charging infrastructure and more
eco-friendly consumption options. NEVs refer to vehicles completely
or mainly driven by new-energy sources, including battery electric
vehicles, plug-in hybrid vehicles and fuel-cell vehicles.
Consumption continued to be a key driver. In late August last
year, the government introduced a trade-in policy to encourage
people to replace outdated household appliances and vehicles with
newer, smarter and greener ones. This policy has had a strong,
positive effect on the sales of new vehicles and home appliances.
In 2024, China's total auto sales
reached 31.44 million, setting a new record, according to the China
Association of Automobile Manufacturers. The trade-in policy gave a
firm boost to auto sales.
Looking ahead, the government plans a stronger macroeconomic
policy push for 2025, and has pledged to adopt a more proactive
fiscal policy and a moderately loose monetary policy this year.
Contributing around 30 percent of global economic growth
annually in recent years, China
has been a major engine driving the world economy. The Chinese
market continues to provide new opportunities for the world and the
country has maintained its position as the world's second largest
importer for several years, with total import value reaching
18.39 trillion yuan ($2.5 trillion) in 2024.
However, it remains a developing country, with a big gap in
per-capita GDP compared to developed nations, Kang said.
He cautioned that challenges, including weak consumer spending,
difficulties facing businesses and employment pressure, remained.
Geopolitical conflicts and rising protectionism have also added to
the existing uncertainty.
In 2024, the national Producer Price Index (PPI) declined 2.2
percent year on year, less than the 3-percent drop in 2023. Xu said
that the negative growth of PPI, a gauge of industrial product
demand, was caused by weak demand in global and domestic markets,
making it a key problem to address this year.
In 2024, fixed assets investment expanded 3.2 percent on a
yearly basis. "But private investment saw negative year-on-year
growth of 0.1 percent, suggesting that private enterprises lacked
confidence," Xu said.
At a symposium on private enterprises attended by prominent
entrepreneurs including Huawei's Ren Zhengfei and BYD's Wang
Chuanfu in Beijing on February 17, President Xi Jinping called for
firming up confidence to promote the healthy and high-quality
development of the private sector.
According to Xu, the authorities should channel more funds into
hi-tech and green sectors, and improve the expectations of private
and foreign-funded enterprises to expand investment.
Xu suggested further improving people's incomes by boosting
employment and the social security system cushioning the life of
low-income groups.
"The government should also shore up rural consumption through
enhancing logistics in remote areas and develop new growth drivers
from emerging sectors such as the silver economy, which focuses on
China's elderly population," he
said.
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SOURCE BEIJING REVIEW
