Recent headlines from Western media, such as Bloomberg, have suggested a significant shift in global investments from China to India. The Bloomberg article titled \"Wall Street snubs China for India in historic markets shift\" claims that billions of dollars are being redirected from China's economy to bolster India's growth.
However, contrary to these pessimistic outlooks, China's economic performance has remained strong. Bridgewater Associates, the world's largest hedge fund, saw exceptional growth in China last year despite global economic downturns and geopolitical tensions. Bridgewater China Investment Management expanded its assets to over 40 billion yuan ($5.6 billion) by the end of 2023, quadrupling in just two years, as reported by the Financial Times.
China maintained the highest growth rate among major economies in 2023, with its GDP increasing by 5.2 percent year-on-year to reach 126.06 trillion yuan ($17.7 trillion). Official figures indicate that China's contribution to global GDP growth surpassed 30 percent in 2023, establishing it as the world's strongest growth engine.
While geopolitical tensions and a decline in global trade have posed short-term challenges to the Chinese economy, the country's long-term fundamentals remain robust. A key driver of this resilience has been the shift from export-led growth to domestic demand-driven development. In 2023, final consumption accounted for 82.5 percent of China's overall GDP growth.
An example of this domestic strength is the opening of Costco's first store in Shenzhen, southern China. According to Xinhua reports, nearly 5,000 people flocked to the store within an hour of its opening in January, highlighting the strong consumer demand fueling the economy.
Reference(s):
Western reports on 'historic markets shift' politically biased
cgtn.com
