Resilient Chinese economy injects certainty into the world amid rising protectionism

Despite headwinds of rising protectionism, increasing signals point to a good start for China's economy for the first quarter (Q1) of 2025, injecting much-needed certainty and confidence into the world.

The Chinese economic momentum is highlighted by domestic demand, industrial production and foreign trade, and driven by pro-growth policies, innovation, and structural adjustment.

The Chinese government has prioritized such tasks as boosting domestic demand, developing new quality productive forces, implementing landmark reform measures, and expanding high-standard opening up, for this year.

Foreign trade remains one of the bright spots for the largest developing country, whose Q1 goods trade volume hit a record high for the same period. Beating market expectations, China's exports in Q1 grew by 6.9 percent year on year. The resilience of foreign trade has been underpinned by its diversification of international markets and innovation-based competitiveness.

Other figures also attest to the steady recovery trend, especially the upward trajectory since the final quarter of last year. The purchasing managers' index of the manufacturing sector registered a one-year high in March and remained in expansion territory for the second consecutive month.

In the first two months of this year, industrial production, consumption, and investment growth rates surpassed last year's full-year figures. The domestic sales of excavators for major manufacturers grew by 28.5 percent in March year on year, reflecting the momentum in infrastructure investment.

Consumption is gaining new momentum because of the expanded large-scale equipment upgrade and consumer goods trade-in programs. The Q1 retail sales of refrigerators and other household appliances increased by 38.4 percent year on year, and those of mobile phones and other communication equipment increased by 27.3 percent, according to value-added tax invoice data from the State Taxation Administration.

China's new energy industries and green transition, driven by its cutting-edge technologies, remain important growth drivers. Green technology promotion services in energy conservation and environmental protection, as well as the sales revenue of the new energy vehicle manufacturing industry, all posted double-digit growth in Q1. Among the country's innovation achievements, humanoid robotics and large artificial intelligence models have driven the development of relevant industries.

Despite external challenges, China is determined to manage its own affairs well, advancing Chinese modernization and pursuing high-quality development while sharing with other countries the new opportunities presented by its development.

Through reassuring messages from policymakers at multiple symposiums, conferences, and expos this year, confidence has been significantly strengthened in the private sector and among foreign investors. This could be seen from a year-on-year increase of 33.4 percent in border crossings by foreign nationals in Q1, and a record 65 Fortune Global 500 companies and industry leaders attending the ongoing fifth China International Consumer Products Expo in south China's Hainan Province.

The sustained economic growth in Q1 has laid a solid foundation for accomplishing the country's annual economic growth target of around 5 percent for 2025. China will implement more proactive macro policies, introduce new incremental policies as needed, and ensure effective economic work in the second quarter and beyond, with intensified efforts across all tasks.

With sufficient and effective policy tools, China has the confidence and capability to achieve this year's economic and social development goals, tackle external uncertainties, and contribute certainty and stability to the world amid rising protectionism.