Experts analyze China's economic development potential

The Caijing Annual Dialogue 2024, organized by Caijing Magazine, was held in Beijing on Dec. 20. Themed "The Power of Navigating Changes," the event focused on topics such as expanding domestic demand and boosting China's capital markets. 

In the current international context, the Russia-Ukraine conflict remains unresolved, and geopolitical tensions in the Middle East continue to escalate. Notably, the re-election of Donald Trump has introduced new uncertainties to the global political and economic landscape, as well as to China-U.S. relations.

Numerous experts gathered at the dialogue to analyze the opportunities present in the current economic climate. 

Yao Jingyuan, a researcher at the Counsellors' Office of the State Council, emphasized the critical importance of expanding domestic demand and leveraging China's vast domestic market for economic development. He elaborated, "China possesses the world's largest domestic demand market, which lays a solid foundation for sustained economic growth and strong support in addressing external challenges."

Zhang Bin, deputy director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, highlighted the importance of comprehensively expanding domestic demand. He noted the enormous potential for investments aimed at improving people's livelihoods and enhancing their quality of life.

Zhang said public investment should be focused more toward public service projects. For instance, there are substantial gaps in infrastructure related to culture, entertainment, health care services and sports facilities, which are critical to people's quality of life, he said. 

Professor Li Daokui, dean of the Academic Center for Chinese Economic Practice and Thinking at Tsinghua University, made an optimistic forecast of an "economic temperature rise" for China's economy in 2025. He pointed out three main aspects where China's economy holds immense potential. First, the country's demographic advantage brings enormous market potential. Second, the national savings rate at 40% is among the highest globally, providing a stable source of funding for the investments needed for economic growth, making it one of the key drivers of sustained economic development. Third, the research and development capabilities in applied research are robust. 

Although some countries have advantages in original achievements, Li explained that China, with its substantial number of engineering and technical graduates — 4.4 million annually, more than the total of similar talent in other countries — demonstrates strong competitiveness in the application and transformation of technological innovations, driving high-quality economic development.

Li also emphasized that China's economic policy will clearly focus on restoring growth rates and initiating a new growth cycle in 2025. He said, "We scholars should take on the responsibility to collaboratively strive in 2025 to promote stronger, faster and more effective policy adjustments, enabling the economic climate to swiftly warm up, with expectations for continuous economic growth in 2026 and 2027."