High-quality growth offers global boost

Faced with growing external uncertainties, China's focus on advancing its high-quality development agenda will not only bolster domestic resilience but also contribute to global economic stability and prosperity, senior officials and businesses executives said at the China Development Forum 2025 in Beijing.

In particular, the stronger emphasis of the world's second-largest economy on consumption and innovation this year, along with its unchanged commitments to wider openness, has provided great opportunities for global businesses to grow in the Chinese market and beyond, they said at the two-day event, which concluded on Monday.

Han Wenxiu, executive deputy director of the Office of the Central Commission for Financial and Economic Affairs, said, "China's economy continues its upward trajectory this year, and there is still ample room for policymakers to leverage countercyclical adjustments."

Backed by a steadfast commitment to high-quality growth, China is going to provide a crucial source of stability and certainty for the world economy, he added.

To this end, Han said that China is striving to "position consumption as the primary driving force and stabilizing pillar of its economic growth".

"While China already boasts a sizable consumer market, the proportion of consumption in the national economy and total demand is still relatively low, lagging behind developed countries by around 20 percentage points. This indicates immense potential for further consumption expansion," Han said.

Earlier this month, the Chinese government rolled out an action plan dedicated to boosting consumption, with a particular focus on promoting higher household incomes and alleviating financial pressures on consumers.

The implementation of a comprehensive reform package aimed at catalyzing consumption and improving productivity could raise China's annual potential growth rate by around 1 percentage point in the medium term, said Nigel Clarke, deputy managing director of the International Monetary Fund.

According to IMF research, this would translate to a nearly 20 percent increase in the country's GDP level by 2040 compared with the baseline forecast.

Meanwhile, it is imperative to recognize that the global economy is experiencing a profound transformation, driven by many factors. One of the most important of these might be technology, artificial intelligence in particular. That holds true for China as well, said Roland Busch, president and CEO of Siemens AG.

China announced in its Government Work Report in March that the country, under the AI Plus initiative, will work to effectively combine digital technologies with its manufacturing and market strengths.

Han said that by placing science and technology at the forefront, the nation is actively deploying digital technologies, green technologies and AI to upgrade and revive traditional sectors while nurturing the industries of the future tailored to local conditions.

Anil Wadhwani, CEO of Prudential, said: "A shift toward a more consumption-driven economy and strategic capital allocation to high-growth sectors will be critical for long-term sustainability. The world is watching as China's success directly influences global economic stability."

"With world-class manufacturing, technological advancements and deep global market integration, China is uniquely positioned to lead the next phase of high-quality growth," he added.

Despite the challenges the global community has faced in recent years, the value of openness and cooperation as a catalyst for mutual progress has been consistently validated, according to business executives.

"Today, we are living in a world that faces an ever-growing range of complex challenges from increased geopolitical tensions, fragmented economic growth, to rising risks of extreme weather and natural catastrophes to name but a few," said Andreas Berger, CEO of Swiss Re.

"These and many other challenges require us to work even more closely together. As such, global collaboration and constructive dialogue are even more vital to navigate issues and ensure a shared prosperous future," Berger added.