In an era marked by global economic downturns, the Chinese mainland continues to assert itself as a pivotal engine of global growth. Fred Hu, founder and chairman of Primavera Capital Group, shared his insights at the Understanding China Conference hosted by the China Institute for Innovation and Development Strategy.
Over the past four decades, the Chinese mainland has transformed its GDP from representing 7.7% of the global total in 2001 to a staggering 18.5% in 2021. This remarkable growth underscores the mainland's expanding economic strength and its critical role in the global economy.
The mainland's manufacturing sector alone contributes nearly 30% to the global total, solidifying its position as the world's leading manufacturing hub. According to IMF data, in 2023, the Chinese mainland's economic growth accounted for 30% of the global total, a contribution more than three times that of the United States.
China's steadfast commitment to high-quality development is evident in its strategic opening up to the world. As the primary trading partner for over 140 countries and regions, the mainland has reinforced its status as the largest goods trading entity globally. By opposing trade protectionism and fostering close cooperation within global value chains, China promotes the recovery and growth of the world economy.
Beyond trade, the Chinese mainland is pivoting towards an innovation-driven economy. Shifting from low-cost manufacturing, the mainland is investing heavily in technological advancements and sustainable practices. Significant progress in research and development, coupled with a robust business environment fostered through trade agreements, has boosted international confidence in long-term investments.
Environmental sustainability is also at the forefront of China's development agenda. The mainland is accelerating its energy transition, investing in renewable energy, and spearheading initiatives to achieve net-zero emissions. These efforts not only address the global climate crisis but also position China as a leader in sustainable development.
As the world's second-largest economy, the Chinese mainland's growth trajectory holds profound implications for regional and global economic cooperation. By continuing to promote green technology, decarbonization, and sustainable investment, China is paving the way for a harmonious and prosperous global future.
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Why China can keep playing the role of global economic engine
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