China’s macro-economy has emerged as a powerful “avatar” for global development, offering unique and innovative benefits to the world.
Its substantial contribution to the global economy—accounting for more than 30 percent of global GDP—along with its holistic facilitation of international supply chains, vividly reflects the versatility of its economy, the diversity of its manufacturing sector, its digital productivity and its commitment to modernization and openness. These factors collectively demonstrate China and Xi Jinping’s strong dedication to advancing the betterment of the global economy. Most recently, Vice Premier He Lifeng delivered a keynote speech at the World Economic Forum Annual Meeting 2026 in Davos, highlighting his government’s commitment to facilitation, openness, transparency and support for maintaining free trade, multiculturalism and the promotion of win-win cooperation rooted in equality, justice and the rule of law. His address reaffirmed China’s role as a responsible global economic leader, underscoring principles that are increasingly absent in the current international system. Unfortunately, these traits, concepts and norms of international engagement are under threat, with a new world disorder emerging characterized by arbitrary unilateralism, economic protectionism, unwise tariffs, trade conflicts and “America First” political rhetoric promoted by certain administrations. As a result, economic globalization, international cooperation, constructive competition and the effectiveness of international regulatory bodies are increasingly under pressure, creating obstacles for weaker countries, communities and enterprises worldwide.The self-interest-driven policies of the US, exemplified during the Trump Administration, have weakened the international trading system, undermined norms of diplomatic engagement and challenged institutionalized mechanisms of dialogue and development. These approaches have legitimized the use of power in ways that violate the sovereignty and territorial integrity of other nations, amplifying geopolitical tensions. In contrast, Vice Premier He Lifeng’s speech was timely, holistic, inclusive and constructive, inspiring hope for greater global progress and prosperity. His address emphasized the dignity of humanity, the consolidation of rule of law, equality, justice, multiculturalism, the smooth sustainability of global supply chains and joint efforts to eradicate poverty, unemployment, climate change, socio-economic disparities, geopolitical discrimination and geostrategic conflicts. The speech also reaffirms the principles of internationalism, economic globalization, multiculturalism and international cooperation, reinforcing China’s commitment to global stability and equitable development. China has already implemented its 15th Five-Year Plan from January 1, 2026, focusing on long-term structural reforms aimed at further strengthening its macro-economy, industrial capabilities and productivity levels. The plan emphasizes high-quality development, a shift toward domestic consumption and demand-driven growth, digitalization, artificial intelligence, modernization, qualitative industrialization, green technologies and support for innovation, skilled human resources and quantum technologies across domestic, regional and global stages. As the world’s manufacturing hub and a global leader in solar and wind panels, electric vehicles, lithium batteries and artificial intelligence, China provides a platform for greater global connectivity, prosperity and productivity even amid challenges posed by global disorder. Its economy has become a key driver for industries, communities and financial centers worldwide. The 15th Five-Year Plan, along with Xi Jinping’s Global Development, Security, Civilization and Governance initiatives and the Belt and Road Initiative (BRI), is set to act as a catalyst for global economic growth, facilitating efforts to achieve prosperity, economic equality, social harmony, political equality and geopolitical constructiveness through win-win propositions.
Without quality development, green transformation, robotic sciences, innovations, modernization, digitalization, AI and constructive competition, the global economy risks stagnation. China’s initiatives, concepts and openness therefore represent a path forward, ensuring inclusive and sustainable development. Domestically, China achieved its main socio-economic development targets in 2025, maintaining resilience, diversity, stability and sustainability, while delivering tangible benefits to households.
Furthermore, China is expected to intensify its support for innovation through measures such as leveraging a national venture capital guidance fund, exploring the creation of a state-level mergers and acquisitions fund and optimizing the deployment of government investment funds. These steps will add value to the economy, communities and enterprises alike, strengthening the foundations for future growth. China’s economic structure will continue to improve in 2026, with growth increasingly driven by innovation. The digital economy’s value added is projected to reach approximately 49 trillion Yuan ($7 trillion) in 2025, accounting for roughly 35 percent of the country’s GDP, while new technologies and high-tech projects gain momentum. Policies promoting equipment upgrades and consumer goods trade-in programs have also delivered strong results. In 2025, ultra-long special treasury bonds supported around 8,400 projects, driving total investments exceeding 1 trillion Yuan. According to the Chinese National Bureau of Statistics (NBS), China’s GDP grew 5 percent year-on-year to 140.19 trillion Yuan ($20.13 trillion) in 2025, reflecting the resilience and vitality of the world’s second-largest economy despite multiple pressures. Quarterly growth was 5.4 percent in Q1, 5.2 percent in Q2, 4.8 percent in Q3 and 4.5 percent in Q4, underscoring China’s role as a beacon of stability and a driver of the global economy. Amid external uncertainties, including trade tensions, weak domestic demand and a slowing property sector, China’s foreign trade rose 3.8 percent to 45.47 trillion Yuan ($6.51 trillion), surpassing the 45-trillion-yuan mark for the first time. China enjoys significant comparative advantages, including a complete industrial system, a vast consumer market and rich application environments. These factors enable it to stimulate consumption, improve industrial operational efficiency and alleviate structural supply-demand imbalances, while simultaneously fostering new industries and business models. Consequently, China injects fresh growth drivers into its economy as well as into regional and global economies, promoting sustainable and inclusive development worldwide.
The writer is President, the Centre for Knowledge and Public Policy, Regional Expert: China, CPEC, BRI & World Affairs.DECK
