Country should explore strengths to consolidate base for recovery

The long-term upward trajectory of China's economy remains unchanged, despite the challenges in recent years. This year, the economy is poised to benefit from the synergistic effects of innovation-driven growth, domestic demand expansion, private enterprise empowerment and the revaluation of Chinese assets by international capital.

The potential of innovation is being unleashed. DeepSeek, a Chinese private artificial intelligence startup, exemplifies the breakthrough advancements in China's AI sector, even under constrained computing power. A Stanford University report highlights that 61 percent of the world's authorized AI patents originate from China and the country also leads globally in robot installations. Today, technological and industrial breakthroughs driven by innovation are evident nationwide, prompting local governments to further enhance the business environment, embrace innovation and continuously strengthen the innovative capabilities of cities and regions.

The central government has meanwhile vowed to boost consumption, improve investment efficiency and expand domestic demand this year. To this end, the government is implementing a more proactive fiscal policy and a moderately loose monetary policy, increasing the fiscal deficit rate and launching special initiatives to stimulate consumption.

China is steadfast in its support for the private economy. The government recently held a symposium focused on private enterprises, underscoring its commitment to their development. A draft law on promoting the private economy is expected to be enacted soon. This legislation will ensure that enterprises of all forms of ownership can utilize production factors equally, participate in market competition fairly and receive equal legal protection.

The revaluation of Chinese assets is attracting international capital inflows. Historically, international capital underestimated the strength of China's technological capabilities and the value of its assets. However, DeepSeek's breakthroughs despite the computing power constraints, coupled with its cost efficiency and advanced technology, have showcased the country's innovation potential and development prospects. This has led to a broader recognition of China's global leadership in sectors such as electric vehicles, energy and power generation, high-speed rail, and shipbuilding, as well as its advanced capabilities in aerospace, biotechnology, new materials, robotics, semiconductors and communications. As a result, international capital has shown renewed confidence in the Chinese economy, leading to increased investment in Chinese companies.

The economy is on a path of sustained growth, driven by innovation, domestic demand, private sector vitality and international confidence. These factors collectively ensure that the country's economic development remains resilient and forward-looking.