China trade economy File photo: VCG

China has set its 2024 GDP growth target at around 5 percent, which has been viewed as a signal of strong confidence that the world's second-largest economy could navigate through multifaceted pressure and boost a steady expansion this year.

Unsurprisingly, this practical and realistic objective has met with skeptical and negative comments from some foreign media outlets, with some saying the goal is too "challenging" to meet, citing exaggerated downward pressure and insufficient stimulus. 

Chinese national lawmakers and political advisors said the bearish rhetoric lays bare the deeply-rooted Western ideological prejudice against China and certain countries' "sour-grape mindset." They called for a more objective and comprehensive assessment of an economy that has well-built fundamentals, a "later-comer" advantage in new economy, rising middle-income population and abundant policy latitude.

A 5-percent GDP target also bodes well for the profitability of foreign companies operating in China, foreign business representatives and economists said. And the recent influx of foreign investments and global funds also speak volume for the allure of the Chinese market, serving as a fresh piece of evidence debunking the pessimistic narratives, observers pointed out.

The big picture

In the first two months of 2024, China's foreign trade scale hit a record high, reaching6.61 trillion yuan (about$930.96 billion) in yuan-denominated terms, an increase of 8.7 percent year-on-year, customs data showed on Thursday. 

"The Chinese economy is expected to start off with a good opening in the first quarter of 2024," Zheng Shanjie, head of the National Development and Reform Commission (NDRC), the country's top economic planner, said on Wednesday.

"The around 5-percent GDP growth target comes after scientific reasoning and aligns with the long-term development goals laid out by the 14th Five-Year Plan (2021-25).It is a positive upward target that can be achieved with strenuous work," Zheng said.

The comment was made at a press briefing held on Wednesday during the ongoing two sessions. Zheng, along with several government officials in charge of China's economic and trade affairs, dwelled on the Government Work Report delivered on Tuesday and further elaborated on the country's policy stances. Their remarks also offered a timely response to certain public concerns.

The Global Times noticed through various group discussions on Wednesday and Thursday that the key economic goals set by the Government Work Report have inspired widespread strong confidence among deputies and political advisors, who come from all walks of life and represent the voices across the society. 

"Setting a goal of achieving around 5 percent GDP growth requires a proactive approach as it will involve hard work, overcoming obstacles and challenges. However, with determination and perseverance, this goal can be achieved," Ning Jizhe, a member of the 14th National Committee of CPPCC and the former chief of the National Bureau of Statistics, said in an exclusive interview with the Global Times.

Yin Yanlin, Vice Chairman of the Economic Committee for the 14th National Committee of Chinese People's Political Consultative Conference (CPPCC), told the Global Times that the 5-percent growth rate will make China one of fastest growing economies in the world, as most developed countries have a growth below 3 percent. A 5-percent GDP target could only be achieved by a developing nation as large as China.

Justin Lin Yifu, a member of the Standing Committee of 14thNational Committee of CPPCC and former chief economist of the World Bank, also voiced confidence that China has the potential to meet the growth target. 

"China's GDP is currently 65 percent to 70 percent of US' GDP based on the exchange rate. That translates to an 8-percent growth potential every year until 2035 if the US economy maintains stable growth. Taking account of the global and internal economic situation, achieving a 5-percent GDP growth is possible when we have an 8-percent growth potential," Lin told the Global Times in a group interview.

According to Lin, when other countries were at the stage of development where China is currently at, their economies were performing relatively well. For instance, during the stage of economic catch-up, Japan, South Korea and Germany all achieved economic growth rates of 8 percent or even higher.

Lin stressed that China, as a large developing economy, is still at the stage of industrial upgrade and thus lags behind developed countries, but this renders the country a "latecomer advantage."

In 2023, China's per capita GDP reached about $12,500, which makes the country still the world's largest developing nation. 

"We're still a developing nation, with a gap behind those developed countries, indicating significant rooms for development and growth potential. How could China's economy reach a peak at such a time?" Ning said, pushing against certain allegations that the Chinese economy has peaked.

Ning added that the badmouthing is not only an unscientific judgment, but also a malicious attempt to discredit China. Some deputies also pointed out that the distortion is fueled by the ideological biases of certain Western countries, who are nervous because of China's rise.

"The outside world may have no idea o fhow much endeavors the Chinese policymakers are willing to pour in achieving the GDP goal,"Yin noted.

A New York Times article said on Tuesday that China only announced modest measures to stimulate growth in face with various headwinds, "refraining from the kind of bold moves the business sector has been looking for."

As part of the country's proactive fiscal policy, the Government Work Report said China will issue ultra-long special treasury bonds in the coming years. Pan Gongsheng, governor of China's central bank, said on Wednesday that China's required reserve ratio (RRR) for the banking sector is at 7 percent on average now, and there is still room for a subsequent RRR cut.

"China's policy toolbox is still sufficient, and concrete policy efforts are needed in the face of a complicated domestic and external environment," Pan said. 

A key contributor 

Against the backdrop of China's high-quality development trajectory, some economists also refuted the "Peak China" and "Chinese economy Japanization" claims, by identifying an array of China's new growth engines. 

The Government Work Report vowed that China will strive to modernize the industrial system and develop new quality productive forces at a faster pace.

Lin said it is important that China sits at the same starting line as other developed nations in terms of new economy industries, such as artificial intelligence and digital economy.

"With vast human capital, sheer market size and industrial chain advantage, the country carries greater potential in fostering potential new innovation drives compared with other high-income countries," Lin said, while also taking note of continuous drives from traditional industries in the years to come. 

Lin said that from 2036 to 2050, China has an economic potential to realize a growth range between 3 percent and 4 percent, based upon which China's per capita GDP could reach half that of the US by 2049. As the Chinese population is four times that of the US, the growth trajectory means China's economic output will be twice of the US by 2049, making China the largest economy in the world and the largest contributor to the global economy.

Political advisors also rejected the idea of Chinese economy risks "lost decades" like Japan in the coming years. 

Han Baojiang, a member of the National Committee of CPPCC and a professor at Party School of the Central Committee of the CPC, told the Global Times that the Chinese economy is fundamentally different from the Japanese economy back then, as China is home to a 400 million middle-income population and has a vast domestic demand, whereas Japan only has a narrow domestic market space, which prompted a large amount of Japanese capital to flee the country.

China's 5-percent GDP growth this year also will draw in more foreign investments, as only when Chinese economy expands can the foreign firms have the conditions to make a profit, and only when they make a profit can they continue investing, thus engaging in a "virtuous circle," Yin stressed.

Bloomberg reported on Tuesday that global funds are returning to China stocks, citing Morgan Stanley analysts. Kinger Lau, chief China equity strategist at Goldman Sachs, and his team maintain a cautiously optimistic outlook on the Chinese stock market, anticipating that economic improvements will drive a rebound in corporate profits. 

European aerospace corporation Airbus said in a statement sent to the Global Times that the economic policies released during the two sessions show China's determination to boost its economy. And the growth of China's economy will surely boost the global economic performance as well.