Amid rising global protectionism and economic uncertainty, China continues to position itself as the primary engine driving global growth. As the world's second-largest economy, China is broadening its economic horizons through significant opening-up initiatives, aiming to foster stronger international partnerships and stimulate global markets.
The upcoming Two Sessions, China’s annual meetings of the top legislature and political advisory body, are anticipated to unveil key economic policies that will shape the country's engagement with the international market. These policies are expected to emphasize economic direction, institutional openness, and deeper integration with global trade systems.
Expanding Institutional Openness
In 2024, China made substantial strides in expanding institutional openness by removing restrictions on foreign investment in the manufacturing sector. Additionally, the introduction of a nationwide negative list management system for cross-border services trade marks a significant step forward in facilitating international business operations.
China has also promoted orderly expansion in sectors such as telecommunications, the internet, education, culture, and healthcare. Aligning with high-standard international economic and trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), China is reinforcing its commitment to global economic integration.
The response from multinational enterprises has been overwhelmingly positive. According to the China Business Climate Survey Report by the American Chamber of Commerce in China, 48 percent of surveyed U.S. companies ranked China as a top-three global investment priority. Furthermore, 53 percent of respondents plan to increase their investments in China by 2025, with nearly 70 percent of consumer sector companies expressing confidence in the Chinese market.
Deutsche Bank's research highlights 2025 as a pivotal year for Chinese investment, anticipating that the investment community will recognize China's growing dominance in the global economy.
During the World Economic Forum Annual Meeting 2025 in Davos, Chinese Vice Premier Ding Xuexiang reiterated China's dedication to openness. \"China's door of opening up will not be closed and will only open even wider, and the business environment in China will only get better,\" Ding stated, encouraging foreign enterprises to invest and thrive in China.
Lyazid Benhami, vice president of the Paris Association of French-Chinese Friendship, noted that China's high-level opening-up initiatives are beneficial not only for China's high-quality development but also for its economic partners, especially in a sluggish global economy.
Driving Global Economic Growth
China's average contribution to global economic growth has remained around 30 percent over the past five years, underscoring its role as the largest driving force behind world economic expansion. In 2024, China's GDP surpassed 130 trillion yuan (approximately $18.08 trillion), marking a 5.0 percent increase from the previous year.
China maintains top positions in goods trade, foreign exchange reserves, and manufacturing, while ranking second in service trade and domestic consumption market size. Zhang Xiaotao, dean of the School of International Economics and Trade at Central University of Finance and Economics, emphasized China's crucial role in global trade, investment, and international cooperation.
The Belt and Road Initiative (BRI), launched in 2013, continues to expand, with China signing cooperation agreements with over 150 countries and more than 30 international organizations. The World Bank estimates that BRI-related investments could lift 7.6 million people out of extreme poverty and 32 million out of moderate poverty by 2030.
Bloomberg's calculations, using International Monetary Fund forecasts, project that China will be the top contributor to global economic growth over the next five years, outpacing all Group of Seven countries combined.
Reference(s):
cgtn.com
