‘Two sessions’ showed the pace of China’s development – Dainik Savera Times

China’s “Two Seasons,” play an important role in the country’s economic recovery. The “Two Sessions,” of 2024, are expected to provide insight into China’s economic direction in the coming year. Assessments by the World Bank and International Monetary Fund show that the Chinese economy performed better than expected in the final months of 2023, although challenges remain.

China’s government action report sets a growth target of about 5% for 2024. Although trade remains an important component of China’s GDP, the focus has shifted to increasing consumption. This shift reflects the Chinese government’s effort to adjust the economy’s growth model and persist in supply-side reforms. Adopting this approach is seen as a way to effectively achieve the Sustainable Development Goals in the medium to long term.

China is in the process of becoming a leader in innovation and technology. The quality of manufactured products can increase consumers’ willingness to spend and buy. Electric vehicles are an important example. Innovation and technology require investment in research, development and infrastructure. The Chinese government has continued to invest in this direction. Additionally, special national and local bonds will be issued to finance well-prepared projects where investments are more effective. China’s 14th Five-Year Plan (2021–25) for national economic and social development has already outlined areas of special interest.

Strengthening supply is certainly important. However, supply alone, regardless of its quality, cannot stimulate domestic consumption. The Chinese government has announced various measures to boost consumption.

Obviously, the purchasing power of citizens matters. The government report includes reference to the planned creation of more than 12 million urban jobs in 2024, the same target achieved in 2023.

Opening up and reform remain the cornerstone of China’s economic policy. One of the most notable parts of the government report was the mention of the removal of market access restrictions for foreign investment in manufacturing and services such as telecommunications and healthcare. These measures send a clear signal of China’s firm commitment to further opening up. While more details are expected to be shared, there is a sense of long-term optimism.

(Courtesy- China Media Group, Beijing)