CHINESE macro-economy remained resilient inching towards massive green transition, qualitative industrialization, modernization and massive opening-up during 2021-2025 in which immaculate planning of the 14th Five Year Plan period played an important part.
Ultimately its economic increment is projected to exceed 35 trillion yuan (US$4.89 trillion). Thus it has complete industrial supply chains. Additionally, over the first four years of the period, the national economy expanded at an average annual growth rate of 5.5 percent surpassing all the regional as well as global economies showing its capacity to overcome all internal and external shocks in terms of the pandemic and trade bullying, unilateral sanctions and tariffs. Hence, China’s growth is an unprecedented achievement given its vast economic scale.
China’s heavy investment in R&D surged nearly 50 percent or 1.2 trillion vividly reflecting its great economic dynamism during 2020-2025. Moreover, a phenomenal increase in the information of private enterprises surpassing 58 million at the end of May 2025, over 40 percent higher than 2020 clearly demonstrates the rise of the private sector mitigating western false and fake propaganda of SOE orientation of its economy. Consequently, the last five years should be termed as a period of pioneering progress, transformative breakthroughs and historic achievements. Ultimately, China has become the most stable, reliable, diversified, modern and dynamic force in global development achieving wonders in the spheres of economy, society and system.
It augurs well that its economy is contributing about 30pc annually to global economic growth. The steady economic performance has also translated into tangible livelihood improvements. Urban job creation stood at more than 12 million each year, reflecting the populous country’s stable labour market reducing socio-economic disparity and, of course, ratios of poverty in the country. It bodes well that during the last five-year China marked a leap forward in ecological transformation, with more efficient energy utilization and a better natural environment achieving the desired targets of energy efficacy and productivity. Additionally, China has fulfilled its green promises and shouldered the responsibility of a major country. From 2021 to 2024, energy consumption per unit of GDP fell 11.6 percent, cutting carbon emissions by around 1.1 billion tonnes, nearly half the European Union’s total emissions in 2024.
Furthermore, as a global leader in renewable energy, China’s installed renewable energy capacity reached 2.09 billion kilowatts by May 2025, more than doubling that in 2020. One in three kilowatt-hour of electricity nationwide is now from green sources. Remarkably, the adoption of green lifestyles has surged, with new energy vehicle ownership soaring to 31.4 million in 2024, up significantly from 4.92 million in 2020. Thus the next five-year period from 2026 to 2030 will be critical for achieving China’s 2030 target to peak carbon emissions. The writer suggests that the policy makers of China should integrate their efforts and implement more pragmatic policy measures to promote the green transition in economic and social development and accelerate the modernization of harmony between humanity and nature.
Despite all western political hype and media propaganda, the foreign direct investment into China totaled 4.7 trillion Yuan from 2021 through May 2025. Foreign-invested enterprises now account for one-third of China’s imports and exports, one-quarter of its industrial output and one-seventh of its tax revenue, while creating more than 30 million jobs. By reducing its negative list for foreign investment since 2021 through lifting all restrictions on foreign access to the manufacturing sector has become a major instrument in the development of agriculture and services. Moreover, pilot initiatives in healthcare and value-added telecommunications have opened new opportunities for foreign businesses. It seems that China’s policies on attracting and utilizing foreign investment are consistently easing market access and expanding openness in an orderly way, ensuring foreign companies have equal access to policy benefits, from public procurement to standard-setting. Therefore, it predicts that China will remain and continue to be an ideal, safe and promising destination for global investors.
In summary, it seems that China’s economy will remain steady, stable and sustainable in the second quarter because of its long term structural reforms, business, investment and people’s friendly policy measures and industrial transformation and upgradation. The stable economic pattern during January-June 2025 despite fluctuations in some individual months amid rising external pressure this year vividly reflecting its relatively strong resilience. Obviously, integrated policy support, further export diversification and the accelerated development of new quality productive forces further stimulate its economy. Policies aimed at expanding and upgrading consumption have helped rapidly unleash the consumer market and contributed to stable economic growth gearing the economy achieving the desired goal of 5pc.
The writer suggests that the policy makers of China should adopt a holistic and comprehensive roadmap to prioritize a steadfast yet steady” strategy. It fears that China’s export growth may face some pressure amid fading front-loaded shipments and unresolved trade & tariff war; however, stepped-up macro-policies are expected to provide effective support for domestic demand. The writer appreciates that six government departments including the People’s Bank of China on June 24 unveiled guidelines on ramping up financial support to effectively boost consumption. It proposed 19 key measures covering six aspects, including supporting the enhancement of consumption capacity, expanding financial supply in the consumption sector and tapping residents’ consumption potential will definitely further develop its economy and its associated sub-sectors.
Last but not least, China’s manufacturing industry is being further modernized and diversified moving up the value chain. Unfortunately, the current direction of the global industrial chain restructuring remains unclear. Obviously China’s manufacturing industry will continue to extend. Activation of the Chinese enterprises expanding overseas and pursuing higher added value and deep integration into global industrial chains will be a great stimulator for economic globalization and international cooperation in the days to come. China’s socialist economy will be a forefront disseminating hope of greater socio-economic prosperity and trans-regional connectivity for the Global South and rest of the world.
—The writer is President, Pak-China Corridor of Knowledge, Executive Director, CSAIS, regional expert: China, CPEC & BRI.
(mehmoodulhassankhan@yahoo.com)
