China’s economy in 2024: Pleasing outcomes among uncertainties

BEIJING, April 23, 2024 /PRNewswire/ — A news report from on China’s 2024 Q1 economic performance:

China’s economy in 2024: Pleasing outcomes among uncertainties

Sewing machines have been humming non-stop in the production workshops of Qicaihu Swimwear Group in Jinjiang City, Fujian Province. Inside the workshops, workers have been moving full speed ahead to process orders for shipping to Europe and America. “Three days into the Chinese New Year, our staff in charge of fabric finishing and packing have resumed work,” said a leader of the company. To knock over large volumes of export orders on schedule, all production lines are churning at full throttle.

As the main engine for the steady growth of China’s foreign trade, private companies boast themselves as a highlight in the country’s 2024 Q1 economic performance. A year-on-year comparison showed that China’s import and export volume in the first quarter surpassed ten trillion RMB for the first time, setting a new record. The volume contributed by private companies accounted for 54.3%, showing an increase of 10.7%. Among them, tech giants like Huawei and Alibaba maintained stellar performance, while small and medium-sized enterprises (SMEs) have diversified the source of their orders, thanks to the new business forms and models in foreign trade, which lowered the threshold for SMEs.

Besides, China’s export structure has been improving. For example, high value-added mechanical and electrical products have shown above-average growth rates in export. Products from China are still competitive and attractive in the export market, maintaining a steady momentum and high-quality growth.

Another achievement to write home about was China’s Q1 GDP which hit 5.3%. Many foreign media used phrases like “strong start” and “grew faster than expected” when covering China’s economic performance in the first quarter. Some experts predicted that we can expect more exciting news from China’s economic performance — usually, the second quarter will surpass the first, so a 7% or so GDP growth rate is not a dream too big.

Behind the more-than-pleasing Q1 GDP performance, the manufacturing industry is the main driver, while the added-value of the high-tech manufacturing industry, which includes pharmaceutical, aerospace, as well as spacecraft and equipment manufacturing, grew at a formidable 7.5%. It’s not hard to see that China’s status on the ranks of the global industrial chain is continually elevating.

Naturally, there are challenges facing China’s economy, like sluggish demand, weak performance on both the supply and the demand in real estate, and the liquidity risks of real estate enterprises. But, China is tackling these problems. Last December, the Central Economic Work Conference stressed coordinated efforts in deepening structural reform on the supply side and expanding effective demand, which have been translated into action. In the first three months of 2024, China also launched positive monetary policies including cuts on the required reserve ratio and interest rate, whose influence on CPI is yet to be seen.

Amid complexities in the international landscape, China scored commendably on its economic performance at the initial phase of the year. Although there is no guarantee that the economy will keep up its steady growth impetus, there are indeed enough positive factors to continue spurring our confidence towards China’s economy.

Expert contributing to this episode: Yu Miaojie, NPC deputy, Fellow of International Economic Association, President of Liaoning University

China Mosaic
China’s economy in 2024: Pleasing outcomes among uncertainties