Rebooting the Ferris Wheel of World Economy

“Tianjin Eye”, the giant Ferris wheel that is 110 meters in diameter and equipped with 48 capsules has witnessed Summer Davos 2023 – the annual meeting of the New Champions 2023 – held in Tianjin, a significant gathering and forum for world economy and business.

Chinese Premier Li Qiang addressed the opening plenary of the annual meeting, which gathered over 1,500 global leaders from business, government, civil society, academia and international organizations at a crucial time for the world economy.

The world is standing at a historical crossroads

Over the past three years, unilateralism, protectionism, and de-globalization trends have been on the rise alongside escalating global challenges and growing regional conflicts. All these negative elements have brought instability, uncertainty and unpredictability to the world economy.

However, as Premier Li Qiang stated, there is also a new round of technological revolution and industrial transformation that may generate new engines of global economic development. For most countries, the aspiration of win-win cooperation has grown even stronger and humanity is as steadfast as ever in pursuing peace and development.

Now, the COVID-19 pandemic is fading away and the world is standing at a historical crossroads. The ways in which international society navigates such turbulent times is a crucial issue of concern for the whole world. Political and business leaders, however, may draw some important lessons from the transformations that have taken place over the past few years.

China’s economic rebound brings confidence to the world economy

The Chinese economy, for example, has enjoyed sustained and steady development, which has delivered much-needed confidence to the world economy.

Official data shows that the operating rate of construction machinery in China reached 50 percent in March, up from less than 2 percent during the Chinese Spring Festival in late January. The number of winning projects increased by 27.7 percent year-on-year during the first quarter, with new winning projects in China’s eastern region up by more than 40 percent. Also, the Service Business Activity Index rose to 121.2 in March, continuing the momentum of recovery. Similarly, the investment as “stabilizer” continued to exert force, consumption vitality stabilized and rebounded, business entities accelerated the restoration of confidence, and several high-frequency indicators showed that the economy is picking up.

In various business circles, the spending spree has returned and the recovery of the tourism and movie markets is growing. The national service business activity index was 56.9 percent in March, up 1.3 percent from the previous month.

As the spokesperson for the National Bureau of Statistics stated, with employment recovering and incomes steadily on the rise, consumption is playing an increasingly important role in the country’s economic growth. Data from the State Post Bureau showed that up to April 6 this year, China’s express delivery volume reached 30 billion, 99 days earlier than in 2019.

The resumption of domestic air routes has also accelerated. According to the Civil Aviation Administration, passenger transport volume of domestic routes reached 126 million in the first quarter, representing 88.6 percent of the same period in 2019.

De-coupling and breaking the supply chain is unpopular in international society

The recovery of the global economy is not “a walk in the park”. It requires international consensus and cooperation.

Led by China, the pace of recovery in Asia has accelerated, and the growth rate is expected to be much higher than the world average, according to international forecasts. At the same time, many countries are concerned that the U.S. decoupling and trade protectionism agenda will undermine the stability of global production and supply chains, according to a recent World Bank report.

Such moves are not conducive to world economic growth and are not in the interest of any country. In light of this, China is committed to unswervingly promoting high-level opening-up and delivering greater stability and opportunity for the world with its new development model. The Chinese people, meanwhile, are ready to work with the international community to uphold win-win cooperation, openness and inclusiveness, while opposing ‘decoupling’ and striving to build an open world economy.

The author is director’s secretary of Centre for Chinese Foreign Strategy Studies, Renmin University of China, and a distinguished research fellow, Center for American Studies, Zhejiang International Studies University (ZISU).

The article reflects the author’s opinions, and not necessarily the views of China Focus.