China's growth helps bolster global economic recovery in H1

CHINA TO CONTRIBUTE 30 PCT OF GLOBAL GROWTH

"We need to prevent the world from falling into a prolonged period of anemic growth that entrenches poverty and inequality... But a smart mix of reforms could jumpstart medium-term growth," IMF Managing Director Kristalina Georgieva pointed out in a late-July article published in the IMF blog.

Countries need to boost productivity to promote inclusive growth, develop people-centered fiscal policies, establish a strong global financial safety net, and work together to build a prosperous and fair world, she said.

In this global landscape, China continues to serve as a stabilizing force in the world economy, despite the complexities of international dynamics. As a driving force of global innovation and a champion of win-win cooperation, China's economic momentum remains strong.

"It makes China very attractive, where else are we going to find that level of economic growth, and albeit that the rate of growth is slower, let's say 5 percent. But the base upon that 5 percent is built is equal to a small country in Europe," said Craig Allen, president of the US-China Business Council.

He also noted that China is expected to contribute some 30 percent of global GDP growth in 2024, likely continuing into 2025 and 2026.

Looking at the directions and the outcomes of the reforms, China is accelerating the development of new quality productive forces, continuously unleashing new momentum and creating new opportunities.

Since the beginning of this year, China's policies have encouraged consumption. The added value of large-scale high-tech manufacturing has continued to grow, driven by industrial transformation and upgrading.

China's R&D investment as a percentage of GDP has significantly increased, and American companies are eager to participate in China's technological innovation, said Allen.

An Aug 1 article in The Economist noted that while Western countries are turning toward protectionism, Chinese firms are growing rapidly in the Global South.

The article said that when globalization is under strain, this trend offers an important lesson for policymakers: Trade can bring extraordinary benefits, and a diverse range of affordable, innovative and green products can improve the lives of billions of people.

"Protectionist politics at home will not save them abroad," the article said.