Current Circumstances and Favorable Conditions for Promoting High-Quality Economic and Social Development

On the international stage, challenges and opportunities exist side by side

On the one hand, the external environment, which has grown more complex, grave, and uncertain, is having an increasingly negative impact. Global economic momentum remains weak. Global economic and financial volatility could potentially worsen, as some emerging market nations face escalating pressures from currency depreciation, capital outflows, and rising debt levels. Geopolitical instability is being driven by intensifying rivalries between major countries and the frequent outbreak of local conflicts and upheaval, all of which are creating more spillover effects.

On the other hand, the global economy is showing signs of recovery, and international trade is rebounding. This will help Chinese companies leverage their advantages to broaden their international market presence. Emerging economies are demonstrating strong development momentum and growing into important engines for the world economy. Their influence and voice in global governance also continue to grow. 

High-quality cooperation under the Belt and Road Initiative has delivered concrete progress, and China’s circle of friends continues to expand. By working with Belt and Road partners to enhance connectivity and deepen mutually beneficial cooperation, we have helped inject fresh momentum into both partner economies and the global economy as a whole.

At the domestic level, we are seeing both pressure and momentum

On the one hand, we are confronted by both aggregate issues and structural challenges, which require us to improve both the quality and effectiveness of development. We face inadequate effective demand, constraints on investment growth, difficulties in ensuring employment and boosting income, and an insufficient capacity and willingness to spend among consumers. The economy is showing signs of segmentation, as evidenced by uneven performance among industries. Specifically, many enterprises in traditional sectors are encountering significant difficulties and challenges. 

Bottlenecks are hindering domestic economic flows and limiting the movement of production factors. Furthermore, our ecological conservation efforts remain in a critical period marked by overlapping pressures and formidable tasks, while the foundation for green and low-carbon development requires further strengthening.

On the other hand, China continues to enjoy robust fundamentals and favorable conditions for achieving high-quality economic and social development. The key measures put forward by the 20th CPC Central Committee during its third plenary session in 2024 are focused on further deepening comprehensive reform. They will enable us to effectively address deep-seated institutional obstacles and structural challenges, further liberate and develop the productive forces, and continue providing the necessary drivers and institutional guarantees for advancing Chinese modernization. 

The advantages of China’s vast market are also becoming increasingly evident. China has a population of over 1.4 billion, with upwards of 400 million people in its middle-income bracket. It boasts the world’s most complete industrial system alongside an increasingly robust infrastructure network. With the rapid development of new quality productive forces, there remains significant space for meeting people’s needs for clothing, food, housing, transportation, and culture. There are still ample opportunities for investment in new industries, new arenas, and weaker areas and links. Going forward, coordinated progress in new industrialization and new urbanization will help ensure the sustained growth of domestic demand. 

Moreover, there remains sufficient space for further countercyclical adjustments, and the combination of macro policies has been improved to ensure greater effectiveness. Major initiatives are being fast-tracked, including those to support major national strategies and security capacity-building in key sectors, as well as large-scale equipment upgrades and trade-in schemes for consumer goods. As a result, ultra-long-term special government bonds, local government special-purpose bonds, and central government budget investment will all provide robust support for economic growth. 

Impressive progress has been made in pursuing green and low-carbon development. Our transition to green energy is advancing at a rapid pace, and the recycling rate for resources has markedly increased. All this is providing a solid foundation for more sustainable development.

Editor: Yi Xiaowei