China Eyes Strong Growth Despite Global Headwinds, Expert Says

China’s 2024 Government Work Report, delivered by Premier Li Qiang, sets a GDP growth target of around 5 percent alongside plans to create over 12 million urban jobs and cap the urban unemployment rate at 5.5 percent. These goals as set despite domestic pressures, including property market adjustments, and external headwinds like US tariffs. 

Applauding the work report, Efem Nkam Ubi, acting director of studies at the Nigerian Institute of International Affairs, said, “The work report is notably impressive. It provides a thorough analysis of critical facets of the Chinese economy, clearly articulates China’s priorities, and sets well-defined targets with actionable strategies.”

Stimulating domestic demand

Recognising the importance of internal growth drivers, the report prioritises stimulating domestic demand and consumption. Measures include fostering a robust internal market, encouraging consumer spending, alleviating financial burdens, boosting private investment, promoting green consumption, improving the overall consumption environment, and increasing personal incomes.

“Maintaining economic stability is essential, but it’s no easy task,” Ubi noted. “Despite the complexity of these measures, they appear to be well-thought-out, and will likely stimulate domestic demand and contribute to economic growth.”

Ubi highlighted the government’s commitment to enhancing “micro-regulations” as a proactive measure to safeguard and strengthen the domestic economy, which he described as the primary engine of growth. He suggested that the Chinese government should continue its efforts to strengthen these regulations in line with evolving conditions, providing further impetus to economic recovery.

Embracing openness

The report acknowledges the significant external risks facing China’s economy, stemming from global economic uncertainties and geopolitical tensions. Ubi identified a deteriorating global economy and the rise of trade protectionism, particularly in the US, as major concerns.

However, he expressed confidence in China’s ability to navigate these challenges, citing its position as the world’s second-largest economy, and its commitment to “deliberate and adopt prudent domestic and external policies.”

“I am confident that China will be able to navigate the challenges,” Ubi stated. “It will definitely maintain stable economic growth in the coming year, as it has done in the past.”

Opportunities for Africa

China’s commitment to further open up its economy, reiterated in the report, holds particular significance for African nations. Ubi highlighted three key areas of potential benefit:

Trade and foreign investment: Continued and expanded trade and investment flows are crucial for Africa’s revenue generation and diversification.

Infrastructure development: Further collaboration on infrastructure projects, including green urbanisation initiatives, offers significant learning opportunities for African countries.

New quality productive forces: Cooperation in scientific and technological innovation, particularly in areas like new energy, green transition, AI, and robotics, is vital for Africa’s technological advancement and economic growth. He stressed that cooperation on new quality productive forces is particularly crucial, as Africa currently lags in these areas and needs China’s expertise to enhance its technological capabilities and overall economy.