China's Economic Outlook: Expert Insights on Growth and Global Impact

Published
27 Jun 2024
2024
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World Economic Forum, public.affairs@weforum.org

  • China is embarking on an economic transformation, centring the energy transition as the key driver of growth.
  • Beijing’s economic policies aim to stabilize and invigorate global markets despite headwinds.
  • Ahead of a key economic policy meeting in Beijing, experts convened at the Annual Meeting of the New Champions in Dalian to unpack China’s policy direction and economic outlook.
  • For more information on the Annual Meeting of the New Champions 2024, visit wef.ch/amnc24 and share on social media using the hashtag #amnc24, or #2024夏季达沃# on Weibo and WeChat.

Dalian, People's Republic of China, 27 June 2024 – Distinguished experts offered valuable insights on the current state and prospects of the Chinese economy on the final day of the World Economic Forum’s Annual Meeting of the New Champions ahead of a much-anticipated policy meeting next month in Beijing.

Aparna Bharadwaj, Managing Director and Partner, Global Leader for the Global Advantage Practice, Boston Consulting Group, Singapore, noted that even China’s relatively modest 5% growth target for 2024 – a target affirmed by Chinese Premier Li Qiang in the meeting’s opening plenary – needed to be put in perspective. “Five per cent growth will already add more to the global GDP than India, Indonesia and Japan combined,” she said. “So even a so-called slowed down growth of China is actually incredibly relevant for the global economy.”

Beijing’s oft-used phrase “high-quality growth” is more than just a popular buzzword, said Peng Sen, President, China Society of Economic Reform (CSER). “This is about advanced productivity. It is about innovation.” Future growth for China’s industries requires “revolutionary transformation on the technological front,” he added, and will focus on cutting-edge tech such as generative AI and advanced chips. He cited the current buildout of a national computing network to address surging demand for computing power and big data.

Keyu Jin, Professor of Economics at the London School of Economics and Political Science, said: “There is a fundamental structural change that is under way that has to do with new technologies, and that has to do with climate change.” Emphasizing the fundamentally global nature of these foundational technologies in the green energy transition, Jin said: “China might be leading the way in EVs, batteries and solar panels, but they are all embedded in a global supply chain. It's going to involve everybody.”

The globalized nature of these vital sectors has raised some challenges, said Eswar Prasad, Professor of Cornell University. Geopolitical tensions have been heightened by the fact that China, the United States and Europe are on similar paths towards the revival and upgrade of manufacturing. “Many of the industries that China is looking to develop for its own technological upgrade, for its own move up the value-added chain – green technology, solar, batteries, EVs – are precisely the industries that the United States and perhaps even Europe are counting on for their own manufacturing revival,” Prasad said.

Looking to the near term, Peng Sen highlighted July’s upcoming economic policy meeting in Beijing, in which he expects positive signals from the government on Chinese growth, as an event to watch.

About the Annual Meeting of the New Champions 2024

The 15th Annual Meeting of the New Champions took place 25-27 June in Dalian under the theme, “Next Frontiers for Growth.” The meeting gathered over 1,600 high-level leaders from business, government, civil society and international organizations to generate collective insights and deployable solutions that can spur and maintain positive economic momentum globally.

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All opinions expressed are those of the author. The World Economic Forum Blog is an independent and neutral platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.

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