China injects stability into global economy

The 2025 Semi-Annual Report on China’s Economy has been released recently. According to preliminary estimates, the gross domestic product (GDP) in the first half of the year reached 66 trillion yuan (9.2 trillion USD), up by 5.3 percent year-on-year at constant prices. Amid the looming threat of protectionism and a faltering global recovery, China, with a resolute commitment to openness, has achieved steady economic growth.

This achievement not only showcases the stability and resilience of China’s economy, but also demonstrates its commitment to imputing fresh momentum into the global economy and creating new opportunities for the countries around the world with responsibility.

Firstly, we are pursuing a more steady growth. In the first two quarters of the year, the three key drivers of economic growth, which are consumption, investment, and export, contributed 52 percent, 16.8 percent, and 31.2 percent respectively.

Domestic consumption remained robust, making it the main drive, while service consumption, green consumption, and holiday consumption were continuously injecting vitality into the market. The structure of investment continued to improve, with manufacturing investment growing by 7.5 percent in the first half, accounting for 25.2 percent of the total fixed asset investment and up 1.1 percentage points from the same period last year.

Investment in high-tech services grew by 8.6 percent, significantly outpacing the growth rate of fixed asset investment. A diversified trade pattern is steadily taking shape, with export trade maintaining resilience and total goods import and export growing by 2.9 percent year-on-year.

Secondly, we are strengthening the momentum of new growth drive. Currently, regions across China are developing “new quality productive forces” tailored to local conditions, intensifying efforts to integrate technological and industrial innovation, and sustaining rapid growth in new industries, technologies, and business models.

In the first half of the year, the total added value of high-tech manufacturing enterprises above designated size grew by 9.5 percent, while the business vitality index for start-ups and technology-driven innovative enterprises rose by 29.8 percent and 24.0 percent year-on-year respectively.

R&D investment accounted for nearly 2.7 percent of GDP. China’s innovation capacity continues to improve, with innovation momentum accelerating.

The AI large-scale model DeepSeek hit over 100 million users within seven days of launch, a humanoid robot secured a 124 million yuan (17.4 million USD) contract, and new energy vehicle production and sales both grew by over 40 percent year-on-year. China’s economic development is rapidly shifting from traditional factor-driven to innovation-driven.

Thirdly, we are resolutely promoting the ever-greater openness. The composition of imports has been steadily improved. In the first half of the year, China continued to optimize its import structure, with total goods imports and exports reaching 21.8 trillion yuan, up 2.9 percent year-on-year, including imports of 8.79 trillion yuan.

Tariff levels have been steadily reduced, with the overall tariff rate now at 7.3 percent, well below the 9.8 percent committed upon WTO accession. The negative list for foreign investment has been significantly shortened from 190 items initially to 29 today, with the manufacturing sector fully liberalized.

At the same time, China continues to expand the global network of high-standard free trade zones, with the Hainan Free Trade Port set to officially launch island-wide independent customs operation on December 18, 2025. As China opens its door wider, its massive market of over 1.4 billion people, including over 400 million middle-income groups, is increasingly unleashing strong positive spill over effects.

Investing in China for a win-win future has become a prevailing consensus among global investors. “A more prosperous China will inject stability into the global economy, and a more open China will benefit the world”. From 2021 to May 2025, foreign direct investment in China has totalled 4.7 trillion yuan (0.65 trillion USD). The third China International Supply Chain Expo, which recently concluded, saw participation expand to 75 countries and regions, compared to 55 in its inaugural session. The number of US exhibitors is up by 15 percent compared with that of last year, continuing to lead in the number of foreign exhibitors. Foreign-funded companies have cast a vote of confidence in China’s economic prospects with their concrete actions.

It is regrettable that some western politicians and media, ignorant of the fact that China’s economy is stable and vibrant, continue to blindly promote fallacies such as the “overcapacity” “industrial subsidy” and “export dependence”, while clamouring for “re-balancing Sino-US trade relations”. These views distort reality, confuse the public, and smear China’s economic ties with the world, essentially serving to shift the focus of contradictions in relevant countries and suppress China’s development.

The wielding of tariff sticks, abuse of trade remedies, and pursuit of protectionism by these countries not only drag down the global economy but also undermine confidence in development across nations.

Chinese President Xi Jinping has pointed out, “China pursues common development. We aim to live well ourselves while also ensuring others live well”. Safeguarding world peace and promoting common development are not only fundamental principles of Chinese modernization but also reflect China’s unwavering commitment to its values. As an all-weather strategic partner, China is willing to walk hand in hand with Pakistan on the path to modernization, firmly supporting Pakistan to benefit sooner, benefit more and benefit longer from China’s development.

There is every reason to believe that as China and Pakistan advance the high-quality construction of the China-Pakistan Economic Corridor, our economies will further leverage complementary strengths, achieve a higher level of mutual benefit and win-win cooperation, and continuously inject more positive energy into the regional and global economy.

Copyright Business Recorder, 2025