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E-mail Xinhua, December 31, 2024
BEIJING, Dec. 31 (Xinhua) -- China's economy demonstrated remarkable resilience and adaptability in 2024, amid complex domestic and global landscapes.
The country's economic trajectory was marked by steady progress and supported by a robust package of measures.
Notable growth was seen in key economic indicators such as industrial output, alongside progress in the stabilization of the real estate market. Targeted reforms, fiscal support and innovation-driven measures bolstered domestic confidence.
And the global significance of China's economic performance is clear.
China's economy is expected to have contributed close to 30 percent of global growth in 2024, highlighting its pivotal role in the international economic landscape.
The country has made significant strides in areas of heightened domestic and international interest -- consumption, foreign investment, real estate, and green development -- warranting deeper exploration.
CONSUMPTION GROWTH
Despite persistent skepticism about China's consumption prospects, this year has proven successful, with consumer spending on the rise with fresh highlights.
Though challenges such as subdued consumer sentiment and the ongoing adjustment of the real estate sector have been cited frequently, such narratives do not fully capture the complexity of the situation.
But highlights such as steady development in services and tourism, as well as growth in the large-scale trade-in of goods, paint a more promising picture -- one that merits further discussion.
In 2024, the country introduced a series of immediate and long-term initiatives to tap into its immense consumption potential.
These efforts encompassed the enhancement of fiscal investment, an increase in household incomes, dismantling market barriers, and the exploration of new avenues for consumption through technological advancements and the broader opening of the market.
Some policies have already proved effective, including a consumer goods trade-in initiative, which is supported by 150 billion yuan (approximately 20.55 billion U.S. dollars) in funding raised through ultra-long special treasury bonds allocated to local governments.
The effects of this policy are evident in the rising expenditure on home appliances, automobiles and other goods, with home appliance and car sales up by 22.2 percent and 6.6 percent, respectively, in November, according to the National Bureau of Statistics (NBS).
Broader economic indicators suggest an optimistic outlook. In October, e-commerce logistics hit a five-year high in business volume, while spending on consumer services gained fresh momentum, particularly in the hospitality and dining sectors.
FOREIGN INVESTMENT EXPANSION
In a year marked by growing protectionism and attempts toward economic "decoupling" on the global stage, China has remained a popular investment destination.
French pharmaceutical giant Sanofi reaffirmed global investor confidence in the Chinese market by announcing in December that it was investing nearly 1 billion euros (about 1.04 billion U.S. dollars) to build a new insulin production base in Beijing -- the company's largest single investment in China since 1982.
The investment followed China's announcement of further opening-up in its health care sector, including a plan to allow the establishment of wholly foreign-owned hospitals in some major cities, including Beijing and Shanghai, as well as the island province of Hainan, to modernize health care services and address rising demand.
An increasing number of companies are joining Sanofi in expanding their presence in China to seize growth opportunities and share in the dividends of the country's continued high-standard opening up.
In the first 11 months of the year, a record 52,379 foreign-invested companies were established in China, up 8.9 percent from the previous year.
In November, foreign direct investment in the Chinese mainland in actual use climbed 6 percent from the same period last year.
Foreign investors are drawn to China for a variety of reasons: its supply chain advantages, innovation-driven growth model, and comprehensive offerings that provide everything a company might need.
To help foreign investors capitalize on its supply chain, market and innovation advantages, China has taken significant steps to open up more broadly in 2024. Key measures included expanding industry access and launching pilot programs to attract global investment.
Notably, the 2024 national negative list for foreign investment, effective Nov. 1, eliminated all market access restrictions for foreign investors in the manufacturing sector, in a groundbreaking move for global manufacturers entering the Chinese economy.
PROPERTY MARKET STABILIZATION
Clear signs of recovery have emerged in 2024, bolstered by well-targeted policies that have strengthened confidence and rekindled demand.
In late September, a key meeting convened by the Political Bureau of the Communist Party of China Central Committee underscored the urgency of stabilizing the property market and reversing its downturn.
The meeting called for adjustments to housing purchase restrictions, reductions in mortgage interest rates, and improvements to land, fiscal, tax and financial policies.
Responding to these directives, authorities have lowered home-purchase costs, eased mortgage burdens, and extended critical support for first-time buyers and those seeking to upgrade their housing.
On Sept. 29, the central bank instructed commercial banks to cut interest rates on existing mortgages, including first and second-home loans, to no less than 30 basis points below the loan prime rate by Oct. 31, aiming to alleviate financial pressure on homeowners.
Subsequently, major cities such as Beijing, Shanghai, Guangzhou and Shenzhen have introduced tailored measures to boost their local property markets, in another round of policy adjustments.
These efforts have built on measures announced in May, which included cutting minimum down payment ratios, establishing a relending facility for affordable housing, and pledging to complete unfinished residential projects.
The impact of these policy measures is becoming increasingly evident. In November, the year-on-year decline in commercial residential property prices across 70 large and medium-sized cities narrowed, pointing to early signs of recovery and stabilization in the housing market.
The NBS noted that the positive changes suggest that "as policy impacts continue to unfold, the momentum of market stabilization will strengthen."
GREEN DEVELOPMENT PROGRESS
This year was marked by steady momentum in China's green transition, with measured progress across areas such as ecological conservation, green energy production and consumption upgrades.
Electric vehicles (EVs) have emerged as an emblem of the country's green transition, demonstrating significant growth.
According to The Guardian, China captured 76 percent of the global EV market share in October, dominating a sector in which most sales come from China, the EU and the United States.
In the first 11 months of the year, retail sales of new-energy passenger cars in China totaled 9.59 million units, a 41.2 percent year-on-year increase, according to the China Passenger Car Association.
EVs are just one aspect of China's clean energy development. In July, the country's installed solar and wind power capacity reached 1.206 billion kilowatts, achieving a target originally set for 2030 well ahead of schedule, according to the National Energy Administration.
China's international cooperation in green industries is expanding at an impressive pace.
According to The Financial Times, growing demand for green technology in Saudi Arabia has led to a surge in Chinese exports and investments.
Data shows that China has become Saudi Arabia's largest source of greenfield investments, with a total of 21.6 billion U.S. dollars invested between 2021 and October 2024, approximately one-third of which was directed toward clean technologies such as batteries, photovoltaics and wind power. Enditem
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