This photo taken on March 24, 2024 shows the opening ceremony of the China Development Forum 2024 in Beijing, capital of China. The China Development Forum 2024 is scheduled from March 24 to March 25. The theme of this year's forum is "The Continuous Development of China". (Xinhua/Li Xin)

Editor's Note:

China has ramped up efforts to accelerate high-quality economic development following the two sessions which concluded earlier this month. The Chinese government pledges to create a more favorable business environment for overseas investors by unswervingly implementing the high-quality opening-up policy. In March and April, the China Development Forum (CDF) and the Boao Forum for Asia (BFA), will be convened to illustrate the country's opening-up mandate. Senior executives from a long list of international companies will attend the CDF in Beijing this week. The Global Times' Chu Daye (GT) spoke with Jack Chan (Chan), EY China chairman, on the sidelines of the CDF discussing the resilience and potential of the Chinese economy, and the opportunities China's pursuit of new quality productive forces will provide to the world.


GT：With the conclusion of the two sessions, provinces across China began to implement their growth strategies set for this year. How do you view the opportunities in the Chinese market in 2024?

Chan: The Government Work Report emphasizes the promotion of high-level opening up and win-win cooperation. China's pursuit of green development and the emergence of new business models in the digital economy are creating synergies that propels enterprises to upgrade their production process and reshape their supply chain, fostering new growth drivers and expanding the scope for development. China continues to advance in science and technology, backed by many positive factors supporting the high-quality development of the Chinese economy. In 2024, a crucial year for the realization of the goals and tasks of the 14th Five-Year Plan (2021-25), stimulating domestic demand through boosting consumption of big-ticket items, nurturing new types of consumption and expanding service consumption will be essential.


GT：Do you think China's economy can achieve the growth target of about 5% this year? Why?

Chan: Despite numerous challenges facing the global economy, we remain confident in the steady improvement of China's economy and its sustainable high-quality development. In 2023, China continues to be the world's largest growth engine with a growth rate of 5.2 percent leading major economies worldwide. Stable foreign trade in 2023, resilient amid a complex and austere external environment, has laid a solid foundation for the Chinese economy. The country's institutional advantages, vast market, comprehensive industrial system, and abundant talent pool will continue to support economic growth in 2024. Additionally, a robust toolkit of macroeconomic policies will provide powerful impetus for consumption, investment and foreign trade. 


GT: At present, China's economy is facing external challenges as well as domestic ones such as an aging population. Some say the Chinese economy is "peaking." What's your opinion?

Chan: China's economic growth rate is returning to its potential growth level, indicating a shift in growth momentum. Positive macro policies implemented by the government over the years have provided growth opportunities for domestic and foreign enterprises. China's efforts to create a more favorable market environment by strengthening its advantages, promoting innovation, and international cooperation in areas such as green development are notable. The continuous optimization of its business environment, plus the great potential of the Chinese market, provides broad space for the development of multinationals.

The in-depth participation and long-term commitment of many foreign-funded enterprises to the Chinese market have attested to the attractiveness and resilience of the economy.

China's economy, now in a critical period of high-quality development, faces both opportunities and challenges. As a new round of scientific and technological revolution and industrial evolution is reshaping the global economic pattern, China's high-level socialist market economic system is constantly improving, the advantages of the socialist system with Chinese characteristics continue to demonstrate and the material foundation is more solid. The country's industrial system is more complete and the policy space is still sufficient. On the whole, China's economy has entered the track of a momentum-carrying recovery, and the fundamentals of strong economic resilience, great potential, vitality and long-term improvement have not changed.

Jack Chan, EY China chairman Photo: Courtesy of EY

GT: "New quality productive forces" has become a buzz word. How will China's pursuit of new quality productive forces reshape its economy? What does it mean to the world?

Chan: China's economic growth model is shifting from the traditional mode to incorporating new production factors, and the development of new quality productive forces can accelerate the formation of a new growth model.

To develop the new quality productive forces, new forms of production relations need to be formed. We see the need to further deepen economic reform and reform the scientific and technological systems, establish a high-standard market, and innovate the ways production factors are allocated. In parallel, China needs to open wider to the outside world at a high level and create a benign international environment.

Speeding up the formation and development of new quality productive forces will help promote China's industrial transformation and upgrading, improve the quality of supply, meet the diversified consumer demand, create a high-quality ecological environment, and share the fruits of development for all.

China's increased investment in the field of scientific and technological innovation and its commitment to promoting high-quality development with new quality productive forces will produce new impetus into the Chinese economy, bringing new opportunities for international cooperation, and injecting fresh confidence and vitality to global economic recovery.


GT: In 2023, China's foreign direct investment dropped from 2022's high base. With the Chinese government's emphasis on attracting foreign investment and creating a better business environment, how will China's FDI fare this year? The CDF is a window for foreign-funded enterprises to understand China. What highlights will be observed at this year's forum?

Chan: Although China's FDI declined in 2023, it remained historically high, exceeding the 1-trillion-yuan mark, demonstrating the continued appeal of the Chinese market to foreign investors. The surge in the number of foreign backed companies indicates ongoing momentum in foreign companies' interest in China, with multinational corporations remaining optimistic about China's growth prospects. 

Efforts by the Chinese government, such as the "Invest in China" initiative and many other action plans, are beginning to yield tangible results, enhancing China's attractiveness to foreign investment. We are very optimistic about China's FDI performance in 2024, particularly in high-tech and digital sectors.

The China Development Forum is expected to play an important role, facilitating in-depth exchanges of views on a wide range of issues covering carbon neutrality, artificial intelligence, health care, and new consumption patterns in the complex and ever-changing external environment.