China's economy remains a sturdy anchor in choppy waters

BEIJING, March 17 (Xinhua) -- The curtain fell last Thursday on an important political gathering in China this year. As the "two sessions" concluded, Beijing sent an unequivocal message to a world grappling with heightened uncertainty: China will remain the most stable engine of the global economy.

At this year's two sessions, China set a GDP growth target of 4.5 percent to 5 percent for 2026, markedly outpacing the IMF's January projection of 3.3 percent for the global economy.

The target reflects China's confidence that rests on solid fundamentals. Over the past five years, China's economy has grown at an average annual rate of 5.4 percent, contributing around 30 percent to global growth -- more than the combined contribution of the G7 nations.

"The world can count on China to deliver new contributions to strong and sustainable global growth," Chinese Foreign Minister Wang Yi said on the sidelines of the national legislature's annual session.

POWERING GLOBAL DEMAND

Perhaps the most visible channel through which China is stabilizing the world economy is its massive domestic market. As the world's second-largest consumer market, it is creating vital demand for global goods and services.

The 2026 government work report places "building a robust domestic market" first among the major tasks for this year. It pledges concrete measures including 250 billion yuan in ultra-long special treasury bonds for consumer goods trade-in programs, a 100-billion-yuan fiscal-financial coordination fund to spur domestic demand, and expanded interest subsidies for consumers and service providers.

The policy is already yielding results. In 2025, the trade-in program drove over 2.6 trillion yuan in sales, benefiting more than 360 million consumers. "The trade-in program has given our business a real shot in the arm," said Ai Yucheng, who works at a home appliance store in Yuncheng, Shandong Province. "Foot traffic has more than doubled, and customers are coming in ready to buy."

The outline of the 15th Five-Year Plan (2026-2030) reinforces this priority, vowing to "unleash the potential of service consumption" and "promote the expansion and upgrading of goods consumption."

This vibrant demand extends beyond borders. During the recent Year of the Horse Spring Festival, Chinese travelers fanned out across traditional favorites and off-the-beaten-path destinations, with their spending providing a timely boost to tourism economies from Thailand to Europe.

The integration of AI with consumption -- creating new scenarios for smart homes, intelligent vehicles, and personalized services -- is generating new demand that benefits the entire global economy.

Yet China's economic contribution runs deeper than consumption alone. Committed to high-level opening up, it is advancing trade and investment liberalization on multiple fronts -- anchoring global supply chains while opening its doors wider to foreign goods and capital.

Scarcely three months into 2026, foreign investors are already doubling down: Republic of Korea semiconductor equipment maker STI is building a semiconductor manufacturing base in Guangzhou, with a total investment of approximately 12.4 billion yuan; German automotive parts giant Schaeffler is pouring an additional 1 billion yuan into a humanoid robotics factory in Jiangsu Province. The new investments underscore global confidence in China's dual role as both production hub and consumption engine.

BOOSTING QUALITY GROWTH

Technological innovation has become a key engine driving China's high-quality economic development, and a thriving Chinese economy is, in turn, a boon to the whole world.

China has placed a great emphasis on fostering "new quality productive forces" -- a paradigm shift that prioritizes scientific breakthroughs, green transformation, and digital integration over traditional factor-driven growth.

These efforts are built on strong fundamentals. China allocated 2.8 percent of its GDP to R&D in 2025, with annual investment exceeding 3.9 trillion yuan, up 8.1 percent year-on-year. The country's STEM graduates -- more than 5 million per year -- form a world-leading talent pool.

This human capital advantage is being channeled into strategic frontiers: from the AI model DeepSeek to the launch of the Fujian aircraft carrier equipped with electromagnetic catapults, and the successful test of a 240-tonne reusable liquid oxygen-kerosene engine for commercial spaceflight. Cutting-edge advances are unfolding across the board -- in new energy, integrated circuits, and intelligent transportation.

These innovations generate positive spillovers that benefit the global economy as a whole -- driving down costs, accelerating green transitions, and opening new market opportunities.

Rather than pursuing technological self-sufficiency in isolation, China is expanding international collaboration. Foreign multinationals -- from Tesla's Gigafactory and Roche's innovation hub in Shanghai to Apple's new applied research lab in Shenzhen -- are deepening their China-based R&D to tap into this dynamic ecosystem.

"China's economy offers the world a rare combination of stability, long-term growth potential, and open cooperation. Partnering with China means partnering with opportunity," said Gao Shijie, an official with the National Development and Reform Commission.