Business leaders upbeat about China’s outlook

In its government work report, China unveiled an around 5% expansion target for the Chinese economy this year. — Reuters

BEIJING: Economic experts and business leaders showed optimism on China’s economic growth outlook in 2023 at the just-concluded China Development Forum or CDF 2023, saying that China is a major driver of the global economy and a reliable supplier for industrial and supply chains.

In its government work report, China unveiled an around 5% expansion target for the Chinese economy this year.

Kevin Kang, chief economist of KPMG China, said the goal was obviously higher than the estimated growth of most major economies.

China’s consumption sector is expected to accelerate its recovery, and the country’s technological innovation and green transformation are advancing investment in manufacturing, Kang said.

As the country picks up its recovery pace, and as overseas growth decelerates, the Chinese economy is expected to once again emerge as an important driver of global economic growth, he added.

Zhu Min, vice-chairman of the China Centre for International Economic Exchanges, believes the around 5% growth target is prudent and sustainable, against the backdrop of rising uncertainty in the global economy.

Zhu cited factors such as the stabilisation of the property market, the consumption revival and robust investment into the high-tech manufacturing industry, which will all contribute to the goal.

Although many scholars, analysts and business leaders spoke of multiple challenges in the broader global environment, they also stated that China should have the confidence to cope with external challenges.

“China has already been deeply embedded in the international value chain and become a global manufacturing hub and a ‘world factory,’ as a result of over 40 years of reform and opening-up,” said Yi Xiaozhun, former World Trade Organisation deputy director-general.

Yi noted that multinationals cannot divorce from China, let alone abandon it and construct a new global value chain.

United States exports to China reached a record high in 2022. — Xinhua