Experts agree that China's economy boasts significant potential for growth, driven by strong domestic demand and abundant resources. This optimistic outlook is supported by the country's impressive industrial advancements and vast consumer market.
Massive Domestic Market Drives Growth
China's complete industrial system provides a solid foundation for expansion, with the manufacturing sector's global share rising from less than 3 percent in 1990 to nearly 30 percent in 2022. This robust supply chain is complemented by a massive domestic market, solidifying China's position as the world's second-largest consumer and import market. Additionally, China stands as the top market for automobiles, consumer electronics, and online retail.
A commentary in the national newspaper Economic Daily emphasized the untapped potential within domestic consumption. It noted that increasing resident consumption by 10 percentage points in the overall GDP to reach the average level of middle-income countries would translate to a significant 12.6 trillion yuan ($1.77 trillion) boost, strengthening the economy's internal growth engine.
Resource Concentration Unlocks Growth Potential
Experts highlight that China's abundant resources, including its large urban population, are key to unlocking new growth opportunities. The country's key annual political meetings, the Two Sessions, are set to begin in Beijing next week, with economists expecting a GDP growth target of around 5 percent for this year.
A January report by the Academic Center for Chinese Economic Practice and Thinking underscored that the long-term growth potential of the Chinese economy is primarily determined by potential demand and supply. On the demand side, there is considerable room for China's urbanization, rural population transfer, and resident income growth, which will drive continuous growth in consumption demand in the future.
On the supply side, the Chinese economy benefits from significant advantages, including a high national savings rate, strong scientific and technological innovation capabilities, and a vast pool of human resources. These factors collectively contribute to sustaining and enhancing China's economic growth trajectory.
Reference(s):
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