Expert: China's economic growth boon to global economy

RIO DE JANEIRO — Thanks to effective incentive policies by the Chinese government, the country's economic growth is projected to exceed market expectations this year and be a driver for the global economy, a Brazilian economist said.

China is a major driver of global economic growth that "has boosted international investor confidence and reduced international financial market volatility," Ronnie Lins, director of the China-Brazil Center for Research and Business, told Xinhua News Agency in a recent interview.

It effectively defended global supply chains from disruptions and facilitated global trade and economic cooperation, he added.

While the International Monetary Fund expects 5 percent economic growth for China in 2024, the country's GDP grew 5.3 percent year-on-year in the first quarter, surpassing expectations.

Lins said he believes China's development of new quality productive forces has stabilized its economy, since it prompts prudent monetary and fiscal policies such as adjusting interest rates to stimulate domestic demand, mitigating deflation risks and encouraging innovation and development.

Thanks to innovations in emerging areas such as green technology and digital finance, China has ensured stable economic development and brought benefits to the world, Lins said.

"China has played a crucial role in supporting sovereign debt restructuring in low-income countries, and has also contributed significantly to leading the global response to climate change," he said.

The stability of China's economy is also crucial to sustaining global supply chains, boosting investor confidence and enhancing international cooperation, Lins added.

Financial market players have recently anticipated a sharp rise in global capital flowing back into Chinese assets. Up to $800 billion in foreign funds are expected to be invested in the Chinese bond market this year, the economist said.

"This is because the Chinese economy has demonstrated strong resilience amid global volatility, exceeding market expectations," Lins said, adding that China's robust economy and strong export growth offer a "safe haven" for international investors.

"China's trade has proven to be very resilient even in the face of increasing global pressure," he said. "The growth of Chinese exports helps boost the economic growth of partner countries by providing them with competitive and high-quality products."

Lins said that China has promoted new free trade zones, streamlined Customs procedures and improved the flow of goods. Stable monetary policy has boosted the appeal of Chinese products, driving significant trade growth with the Association of Southeast Asian Nations, Latin America, Africa and Central Asia, he added.

"Thanks to incentives, continuous innovation and market diversification, China is in a good position to maintain the growth of foreign trade," Lins said.

Xinhua - China Daily