Key takeaways from the China Development Forum 2023

At the China Development Forum 2023, which concluded on Monday, senior Chinese officials, leaders of multinationals, and representatives from international organizations have offered insights on China's economic development and potential.

Here are some key takeaways from their speeches and remarks during the three-day conference.

BOOST FOR GLOBAL GROWTH

The Chinese economy will buoy steady and sustained development, adding certainty to global growth clouded by upheavals, said Han Wenxiu, executive deputy director of the office of the Central Committee for Financial and Economic Affairs.

The contribution of China's economy to world economic growth has exceeded 30 percent on average in the past decade. This year, the figure will surpass that of 2022, providing market demand and a strong impetus to the global recovery, he said.

His views are echoed by IMF Managing Director Kristalina Georgieva, who said China's economy is "seeing a strong rebound."

She said that China is set to account for around one-third of global growth in 2023, giving a welcome lift to the world economy. IMF analysis shows that a 1-percentage-point increase in China's GDP growth leads to a 0.3-percentage-point increase in growth in other Asian economies.

The Chinese economy's huge potential and sound development will provide broad cooperation space and development opportunities for domestic and foreign investors, said Zheng Shanjie, head of the National Development and Reform Commission.

"Investing in China is investing in the future," Zheng said.

MOVES IN THE PIPELINE

Chinese authorities have pledged a series of measures to bolster economic recovery and high-quality development.

The country will expand domestic demand, pursue innovation-driven development, comprehensively deepen reform and opening-up, coordinate urban-rural development, and ensure both development and security, Zheng said at the forum.

On the fiscal front, China will enhance fiscal spending intensity, emphasize the role of local government special-purpose bonds in driving investment, and channel more financial resources toward lower levels of government, said Finance Minister Liu Kun.

To boost the effectiveness of the fiscal policy, efforts will be made to improve preferential tax and fee policies, optimize the fiscal spending structure, and strengthen fiscal policy's coordination with monetary, industrial, technological, and social policies, Liu said.

According to its government work report, China aims to expand its economy by around 5 percent in 2023.

"The current development momentum bodes a promising prospect for the full-year growth target," said Han.

FURTHER OPENING-UP

Speakers at the forum have repeatedly highlighted China's commitment to continued opening-up, building on its undeniable presence and involvement in the global economy.

"China has already been deeply embedded in the international value chain and become a global manufacturing hub and a 'world factory,' due to over 40 years of reform and opening-up," said Yi Xiaozhun, former WTO deputy director-general.

Han said China will persistently deepen global economic and cooperation to maintain the integrity, stability, and security of global industrial and supply chains.

The country welcomes companies worldwide to invest and expand their businesses in China as part of their long-term strategies, said Han, noting that China's utilized foreign investment rose from 144.4 billion U.S. dollars in 2020 to 189.1 billion dollars in 2022.

Zheng said that China will make greater efforts to build a high-standard market system, appropriately shorten the negative list for foreign investment, grant foreign-funded enterprises national treatment, and promote high-quality Belt and Road cooperation.