Contrary to Western estimates, IMF assessments reveal the truth on China
According to the World Bank, economic growth is slated to rebound to 4.3% in 2023 which is based on policymakers pledging to step up assistance in the post-COVID environment.
Contrary to myths promoted by anti-China lobbyists across bipartisan lines in the US Congress and elsewhere in the Western world, China’s economy is slated to perform well and will contribute positively to global economic prosperity. For those who wish to see a stable, prosperous, integrated and interconnected world order it is imperative to view economic performances from sovereign countries impartially and not parrot discredited narratives that belie reality.
‘China’s economy is expected to contribute a quarter of global growth this year’.
The IMF’s assessment of China’s economy in 2023 reveals a clear and incontrovertible fact. The international community has confidence in China’s economic growth. These assessments also indicate positive contributions to the global economy where the prospect of realizing joint prosperity bodes well for both China and the world. IMF assessments further establish how promoting global trade, regional connectivity, and collective prosperity go to China’s credit, and US policies such as curbing Chinese chip technology will only serve to harm the global economy.
Additionally, fallacies and myths regarding the Chinese economy playing a negative role in promoting global economic growth have been debunked. As stated clearly by Ministry of Foreign Affairs Spokesperson Mao Ning, there is a clear commitment to ‘opening up’ amid the presence of crass protectionism worldwide and growing risks to the global economy due to factors such as geopolitical tensions, global debts, restrictive economic policies and soaring energy prices as mentioned by the World Bank. At the official level however, China has stated that the stabilization of its $17 trillion economy will be complemented by policy adjustments that ensure that key targets are met. A commitment to opening up the national economy to promote joint global prosperity was also expressed by Vice Premier Liu at the World Economic Forum in Davos. Emphasis was placed on welcoming foreign investments and underlining how opening up as basic state policy is the catalyst for reform and development.
Furthermore, the worsening global economic situation in 2023 needs China’s growth as an important stabilizer. According to the World Bank, economic growth is slated to rebound to 4.3% in 2023 which is based on policymakers pledging to step up assistance in the post-COVID environment. Stabilization of economic growth involved an array of policy measures including the mobilization of additional funds for infrastructural development and incremental loosening of the monetary policy which promoted solid growth in the manufacturing sector. Industrial output, for example, went up 3.6% year on year in 2022, while fixed asset investments rose by 5.1% respectively. According to a chief researcher at the China Center for International Economic Exchanges Zhang Yansheng, the national economy continued to develop despite of internal pressures as new achievements were secured in high-quality development.
At the multilateral level, contributions are equally notable and support IMF assessments. Multilateral partnerships between China and strategic partners, for example, carry great potential and can transform trading relationships into avenues for collective prosperity. As aptly mentioned by Foreign Ministry spokesperson Mao, in the year 2022 and since the Regional Comprehensive Economic Partnership (RCEP) was signed in 2020, China’s total import and export volume with other member states reached 12.95 trillion yuan and was up by 7.5% year on year.
Additionally, with eight RCEP member states, China’s imports and export also secured double-digit growth which has directly benefited the regional economy. According to Professor Peter Drysdale from the East Asian Bureau of Economic Research at the Australian National University, RCEP pushes back against trade protectionism and fragmentation in 30% of the world economy and is a hugely stabilizing factor in the global trading system. Also, as per Asian Development Bank estimates, multilateral partnerships such as RCEP will increase member economies by 0.6% by 2030 and adding $245 billion to regional incomes while ensuring 2.8 million jobs to regional employment. Hence, multilateral cooperation with an open and economically sound China results in a win-win for all concerned.
The Belt and Road Initiative is ALSO high on the 2023 agenda and offers numerous opportunities for the international community to cement multilateralism. Since the BRI was unveiled ten years ago, 151 countries have partaken in it. As it enters the 10th year of development, certain high-profile achievements such as the successful China-Europe freight train service has formed bonds with cities along its route through Eurasia and boosted common prosperity by reviving the old Silk Route through innovation. This is precisely what is needed to ensure that collective prosperity materializes.
Unfortunately, geopolitical powerplay and decoupling as state policy from certain western countries are dampening the multilateral world order. The imposition of tariffs, sanctions, embargoes, and other instruments of economic coercion have a negative impact on global trade and joint prosperity as envisioned by China. The truth is that the interdependency of the world order cannot be compromised with unilateral policy-making dividing regions such as the Asia Pacific and the Middle East into camps proving to be counterproductive. Foreign Ministry Spokesman Mao mentioned how certain Western countries were building ‘small yards with big fences.’ This is a self-serving strategy that is inconsistent with economic interdependency.
On economic growth and China's contributions to multilateralism, IMF assessments in 2023 reveal the truth. It is a known fact that the world’s second-largest economy is bound to rebound from difficult situations. For those who wish to curb its economic rise, however, such assessments are disappointing.