Experts are emphasizing the significant potential for growth in China’s economy, citing the country’s robust domestic demand and abundant resources as key drivers for future expansion.
Massive Domestic Market Drives Growth
China’s comprehensive industrial system lays a solid foundation for economic growth. The manufacturing sector’s global share has surged from less than 3 percent in 1990 to nearly 30 percent in 2022. This robust supply chain is bolstered by a vast domestic market, positioning China as the world’s second-largest consumer and import market, as well as the leading market for automobiles, consumer electronics, and online retail.
A commentary in the national newspaper Economic Daily emphasized the untapped potential within domestic consumption. It noted that increasing resident consumption by 10 percentage points in the overall GDP to reach the average level of middle-income countries would translate to a significant 12.6 trillion yuan ($1.77 trillion) boost, strengthening the economy’s internal growth engine.
Resource Concentration Unlocks Growth Potential
Experts note that China’s abundant resources, including its large urban population, hold the key to unlocking new growth opportunities. The country’s key annual political meetings, the “Two Sessions“, will start in Beijing next week, with economists expecting a GDP growth target of around 5 percent for this year.
A January report by the Academic Center for Chinese Economic Practice and Thinking highlighted that the long-term growth potential of the Chinese economy is mainly determined by potential demand and supply. On the demand side, there is still considerable room for China’s urbanization, rural population transfer, and resident income growth, which will drive the continuous growth of consumption demand in the future.
On the supply side, the Chinese economy has significant advantages in terms of national savings rate, scientific and technological innovation capability, and total human resources, according to the report.
Reference(s):
cgtn.com
