China’s macro-economy prospects and reforms |
THE China’s Central Economic Work Conference held in Beijing from December 10 to 11 highlighted the salient features of its macro-economy and its positive prospects in the days ahead, conveying a message of stability, sustain-ability, diversity, innovation, digitalization and openness to international markets and investors alike.
It is a good omen that Chinese policymakers are expected to further strengthen the dual circulation model, focusing on strong domestic demand and exports through increasing international trade, aiming for around 5pc economic growth.
Despite US President Trump’s trade and tariff war, the Chinese economy demonstrated resilience, sustaining export momentum and emerging as a stable and reliable trading partner. Strong ties with BRI partners, the expansion of BRICS and participation in the Regional Comprehensive Economic Partnership have significantly supported export growth outside the US, particularly toward the European Union, ASEAN, Latin America, Central Asia, Africa and South Asia.
Even regional US allies, including Australia and several European countries, witnessed a surge in Chinese imports, with China’s exports to the EU increasing by 14.8pc. The concept of “non-US exports” has gathered momentum, fur-ther diversifying China’s exports and manufacturing capacity. Although shipments to the US declined nearly 29pc year-on-year in November, strong growth in other markets lifted total exports by 5.9pc, pushing China’s trade surplus beyond US$1 trillion for the first time.
However, Europe’s sluggish economic performance, with the UK barely growing and the EU expected to expand only 1.4pc in 2025, may create challenges for China’s exports during 2026. The writer suggests that Chinese........