China's ancient paths reveal the truth about modern civilization
- China's domestic GDP experienced a year-on-year growth of 5.3 percent in Q1 2024, amidst strong leadership and government initiatives.
- Increased electrification and intelligent transformation have allowed China's automotive industry to lead globally.
- Despite fluctuations, the overall economic resilience and growth potential signify a robust future for China's economy.
In December 2024, a comprehensive analysis of China's economic performance in 2024 provided insights into the country's growth trajectory. The report highlighted that China's domestic Gross Domestic Product (GDP) experienced a year-on-year increase of 5.3 percent in the first quarter, followed by 4.7 percent in the second quarter and a slight decrease to 4.6 percent in the third quarter. Despite the fluctuations, the average growth rate for the first three quarters stood at a robust 4.8 percent. This period of economic growth can be attributed to the strong leadership of the Communist Party of China and various government initiatives aimed at fostering confidence within localities and agencies, which resulted in concrete economic measures yielding positive outcomes. Moreover, the automotive industry in China has seen significant advancements in electrification and intelligence transformation, allowing it to take the lead on a global scale. With burgeoning demand from the ultra-large market, policy support and supply chain advantages have also played crucial roles in enhancing this sector's performance. As of mid-2024, China held a considerable number of cars, reaching 345 million, although car ownership per 1,000 residents remains less than that of developed countries, suggesting further growth potential. The overall resilience of the Chinese economy has been underscored by foreign trade, which rose by 5.2 percent year-on-year in the first ten months of the year. Aided by a solid manufacturing base and significant industrial chain advantages, the high-end, intelligent, and green development goals of the manufacturing sector substantially contributed to the economic growth, reflecting a proactive response to domestic and international challenges. In this context, it is evident that, while other major economies faced low growth rates and high inflation, China remained optimistic about achieving its economic growth target of around 5 percent, whilst continuing to contribute about 30 percent to global economic growth. The review of the 2024 economic performance also emphasized the vast potential and favorable conditions available for sustaining long-term growth. China's urbanization rate, an essential aspect of its demographic development, reached approximately 66.2 percent by the end of 2023. This demographic transition illustrates the potential for enhanced domestic demand and overall economic robustness as urbanization continues to advance. The interplay between these growth metrics and the ongoing initiatives by the Chinese government provides a solid foundation for future economic prosperity.