Stronger China economy good for the entire world

At the conclusion of China’s third plenary session of the 20th CPC Central Committee in July, the government announced a raft of measures aimed at reinvigorating the second-largest economy. The key reform proposed by Beijing is fostering new quality productive forces—meaning that China aims to replace the old economic growth models with new ones focusing on efficiency, high quality and technological innovation.

The new growth orientation is in conformity with the reforms and opening agenda that China has pursued since 1978. It is such strategic repositioning of the economy that has enabled it to rise from backwaters of development to become the most important anchor and stabiliser of the global economy, with annual contributions above 30 per cent in the past decade.

China’s comprehensive economic development has had real and transformational impact at home and abroad. Domestically, China helped to lift more than 800 million citizens out of poverty, doubled life expectancy and transformed its industrial capacity from making just bowls to making planes, rockets and supercomputers.

Today, China is the largest trading country—being the top trading partner for more than 140 countries. Its trade with Africa, for instance, has grown from just $12 billion in 2000 to $282 billion in 2023. In the process, African countries have diversified their export market into China, earning higher returns and creating wealth at farm and firm levels.

Foreign direct investments

China is also a leading source of foreign direct investments (FDIs) in the continent, with a stock valued above $45 billion in 2024. Beijing is also the top development project financier for Africa. At the 2024 Forum on China-Africa Cooperation (Focac), leaders of both sides made it clear that the next phase of development and modernisation must include Africa and China. This is important because Africa is home to the largest number of developing countries while China is the largest developing country.

A strong Chinese economy would enable Beijing to continue pursuing beneficial foreign policy agenda, such as the Belt and Road Initiative (BRI). Since its launch in 2013, BRI has supported implementation of over 4,000 projects at an estimated cost of $1.1 trillion by close of 2023. In Kenya, the standard gauge railway (SGR), Nairobi Expressway, Lamu deep sea port and the new oil jetty in Mombasa are shining examples of BRI projects. Other ideas to foster meaningful development, peace and civilisational harmony have also been mooted by Beijing in the past three years.

Economic growth

Despite having slowed down in recent years, China’s economic growth rate still stands above many of the first-order group of countries. This year, China’s GDP is projected to grow by 5 per cent—compared to the world’s 2.9 per cent. China’s growth projections are important, considering that a growth of just one per cent in China contributes 0.3 per cent economic growth in both Asia and global economies, according to the IMF.

A more buoyant Chinese economy is particularly important to emerging economies because Beijing has become the most critical development partner, including in green energy transition and green development. China is today the largest source of technologies and products needed to tap the renewables, which are critical in creating a more livable and sustainable world.

Notably, China has the goodwill of supermajority of the United Nations member states dues to its consistent willingness to share the proceeds of its development with other countries. This is because, in many ways, its development success has brought prosperity to many countries and territories around the world.

Dr Cavince (PhD) is a scholar of international relations with a focus on China-Africa development cooperation. @Cavinceworld