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China's economic development is essential to the world's growth overall, as well as China's innovative and sustainable development approach to benefit the world, said global industry leaders.
Jean Sentenac, chairman of Axens, Thijs Aaten, CEO of APG Asset Management Asia, Baruch Halpert, executive chairman and CEO of Electriq Global, made the comments together with Andre Hoffmann, chairman of Massellaz SA and vice-chairman of Roche and Benoit Boulet, associate vice-president of Engineering (Research and Innovation) at McGill University.
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Chinese economy is robust with strong growth momentum and the 5 percent target for economic growth this year is realistic, according to world-renowned economic experts.
Graham Allison, Harvard Kennedy School's Douglas Dillon Professor of Government; Lourdes Casanova, director of the Emerging Markets Institute at SC Johnson College of Business of Cornell University; and Robin Niblett, distinguished fellow of Chatham House (the Royal Institute of International Affairs), expressed their confidence in China's economic growth prospective.
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Leading companies in the automotive industry have called for free markets and cooperation at the 2024 Summer Davos amid the efforts of the European Union and the United States to curb the rise of China's new energy vehicle industry.
Volkswagen Group is a strong advocate for free and open markets, said Ralf Brandstaetter, member of the board of management of the German car group for China, on Tuesday.
Volkswagen is celebrating its 40th anniversary in China this year, which he said "is not least due to the opening of the Chinese market".
"Over 40 years we have clearly demonstrated: Free and fair trade and competition creates prosperity, employment and sustainable growth for all. And we will never stop," said Brandstaetter, who is also chairman and CEO of Volkswagen Group China.
Brandstaetter said Volkswagen is firmly committed to its "in China, for China" pledge, deepening its localization efforts and fostering innovations.
"Our commitment to strengthening local partnerships is unwavering, as we strive for mutual progress and collective success," he said.
In early June, the EU said it would impose additional duties of up to 38.1 percent on Chinese electric vehicles from early July, on top of a standard 10 percent car duty.
Its announcement followed the US's decision in May to quadruple the 25 percent tariff on EVs made in China, and scale up the duty on Chinese lithium-ion batteries for electric cars to 25 percent from 7.5 percent.
Brandstaetter said as the world is increasingly influenced by protectionism, nationalism and growing isolation, an open and constructive dialogue is "more important today than ever".
"The Summer Davos Forum, which I had the pleasure to attend, again showed its strength to engage government representatives, business leaders and experts from various sectors in discussions and collaborations to gain mutual understanding and foster international relations."
The EU and China have agreed to hold talks on EV tariffs in the coming weeks.
Wan Gang, president of the China Association for Science and Technology, said that the two sides should also consider renegotiating the Comprehensive Agreement on Investment, which was reached in late 2020 to assist trade and investment between European and Chinese companies. The European Parliament voted to freeze the agreement's ratification in May 2021.
"It is necessary for the two sides to negotiate properly to move forward together toward economic globalization. Renegotiating the CAI could be an opportunity," said Wan at the Summer Davos.
Zeng Yuqun, founder of CATL, the world's largest battery maker for vehicles, said countries can benefit from the rise of the NEV sector via cooperation.
Companies can build their production capacity across the world. For example, 30 percent in Africa which boasts resources, 40 percent in China which has the most advanced technology, and the rest in the US or Europe, which have big markets.
"Through such a sharing model, all countries and regions would benefit and the geopolitical tensions like the tariffs would be left behind," said Zeng.
Across Europe, the Chinese auto industry has made investments: CATL has built plants in Germany and Hungary to serve local companies and potentially Chinese carmakers as well.
Leapmotor International, a joint venture between Stellantis and Chinese startup Leapmotor, is assembling Leapmotor-branded vehicles in a Polish plant.
Chery has acquired a plant in Spain for EV production, which the Chinese carmaker said will serve as one of its major exporting bases as well.
BYD is building a plant in Hungary, which is expected to start production in three years. BYD sold more than 242,000 vehicles outside China in 2023, surging 334 percent year-on-year. Their products have entered 19 European nations.
Also, BYD is an official partner of the European Football Championship, and has replaced German automaker Volkswagen as the event's official vehicle supplier.
"This prestigious event will enable us to showcase our latest advancements in electric vehicles to a far-reaching audience," said BYD.
Voyah, the premium EV marque of Dongfeng, is stepping up its pace to explore the European market as well.
It is available in countries including Spain, with Belgium and Germany to be added to its list of overseas destinations.
Voyah was the official vehicle supplier of the 2024 Summer Davos, which closed on Thursday.
"China has built a sound industrial foundation for the new energy vehicle sector. It is leading in the sector and the vehicles are increasingly winning recognition in the world," said Voyah CEO Lu Fang at the event.
The carmaker expects to enter 60 countries by 2030, with its cumulative overseas sales reaching 500,000 units.
China exported 481,000 vehicles in May, up 23.9 percent from the same month last year. Of them, 99,000 were NEVs, according to statistics from the China Association of Automobile Manufacturers.
They brought the total number of vehicle exports from China in the first five months this year to 2.3 million units, up 31.3 percent from the same period last year.
DALIAN -- Despite the world grappling with a slowdown in economic growth and a challenging recovery, China's economy has maintained steady development, bolstered by the rise of new industries and new growth drivers.
During the 15th Annual Meeting of the New Champions, also known as the 2024 Summer Davos, which concluded on Thursday, participants hailed China's efforts in cultivating new quality productive forces, noting that it has not only injected new vitality into the Chinese economy but also expanded opportunities for global cooperation.
Speaking at the opening ceremony, Polish President Andrzej Duda said that China's contribution to world economic growth has stayed at around 30 percent over the years, and it continues to be a key driving force for global economic growth.
New growth drivers
Since the start of this year, the Chinese economy has maintained its recovery momentum. It started strongly in the first quarter with a 5.3 percent year-on-year growth and continued to grow steadily in the second quarter.
Official data showed that indicators measuring consumption, trade in goods and value-added industrial output all posted positive performance in May.
"We have the confidence and capability to achieve the growth target of around 5 percent for this year," Chinese Premier Li Qiang said when addressing the opening plenary of the event.
International organizations and institutions have raised their forecasts for China's economic growth, reflecting strong confidence in the country's future prospects.
Recently, the World Bank increased its forecast for China's 2024 economic growth to 4.8 percent, 0.3 percentage points higher than the previous forecast. The International Monetary Fund (IMF) also revised China's economic outlook to 5 percent, 0.4 percentage points higher than the previous forecast.
This positive outlook rebuffs the narratives of some Western politicians and media, who claimed that China's economic slowdown could pose risks to global economic growth. According to IMF analysis, a 1 percentage point increase in China's GDP growth results in an average of 0.3 percentage point increase in growth for other economies.
China's economy has exceeded expectations and shown strong resilience in the first half of this year, especially in emerging industries, Jason Ding, managing partner of Greater China offices with Bain & Company told Xinhua.
In particular, China has gained an international edge in electric vehicles, lithium batteries and photovoltaics. Renewable energy now accounts for over 50 percent of the country's total installed capacity.
"I see huge opportunities in China since it is leading the way in a series of new technologies such as the batteries and new energy vehicles, which have provided new drivers of growth," said Merik Dusek, the managing director of the World Economic Forum.
"High-quality growth" is more than just a popular buzzword, said Peng Sen, president of the China Society of Economic Reform. "This is about advanced productivity and innovation."
Future growth for China's industries requires a revolutionary transformation on the technological front, as well as a focus on cutting-edge technologies such as generative AI and advanced chips, he added.
Opening up endeavour
Amid a gloomy global economic outlook, China's sustained economic growth promises positive spillover effects for the rest of the world.
At present, China is a major trading partner of over 140 countries and regions. In the first five months of this year, its trade in goods with other countries grew by 6.3 percent year-on-year, according to official statistics.
China has a vast market of over 1.4 billion people, a comprehensive industrial support system, an abundant labor force and talent pool, and diverse application scenarios, said Jason Ding, adding that these unique advantages could not only meet domestic demand but also enhance supply in the international market.
For example, the country's cultivation of large-scale new growth drivers in sectors such as green infrastructure, green energy, green transportation and green lifestyle will generate investment and consumption markets with an estimated size of 10 trillion yuan ($1.4 trillion) annually, promising enormous potential.
Emphasizing the fundamentally global nature of these new technologies, Keyu Jin, a professor at the London School of Economics and Political Science said, "China might be leading the way in EVs, batteries and solar panels, but they are all embedded in a global supply chain. It's going to involve everybody."
In contrast to some countries resorting to regressive actions like decoupling, disrupting supply chains and building barriers, China has reaffirmed its commitment to opening its doors wider to the world and deepening cooperation with international communities.
In his speech, Premier Li Qiang called on all countries and regions to work toward deepening scientific and technological exchanges and cooperation, bolster the foundation for green development, safeguard an open market environment, and promote inclusive and mutually beneficial development.
China remains steadfast in its commitment to opening up. It has pledged to increase imports of high-quality goods and services from all over the world, attract increased foreign investment in sectors such as medium and high-end manufacturing and biopharmaceuticals, further streamline market access, and foster an open, inclusive and transparent business environment for enterprises worldwide.
"We definitely need to keep China open for the world, but we also need to keep the world open for China," Jin added.
DALIAN -- China's potential for consumption remains immense and should be further tapped as consumer demands evolve with improving living standards, according to observers at the 2024 Summer Davos.
With a population exceeding 1.4 billion, China boasts a vast consumer market and a captivatingly diverse consumption landscape, said Jason Ding, managing partner of Bain & Company's Greater China offices.
Hannah Qiu, senior vice-president and China CEO of PayPal, echoed a similar sentiment. She noted that Chinese consumers have become increasingly discerning, seeking the best products at competitive prices for their daily necessities.
While certain consumer categories, such as essential supplies, have experienced slower growth, other sectors, including healthcare products and services, are witnessing a surge in demand, according to Ding.
China's per capita GDP has surpassed $12,000, a significant milestone that often heralds a pronounced acceleration in consumption upgrading, as demonstrated by international experience.
"One outstanding trend in China's consumption market is that the supply side has not fully met the consumers' upgraded demands, particularly in the service sector," said Zhu Min, vice-chairman of China Center for International Economic Exchanges, citing fields such as elderly care and medical services.
Pierluigi Antonelli, CEO of global healthcare company Fresenius Kabi, said they have seen clear, strong demands for their products in China, one of the company's top two global markets.
Since last year, China's service sector has seen a robust consumer spending wave. In 2023, the retail sales of services climbed 20 percent year-on-year, outpacing that of commodities by 14.2 percentage points. From January to May this year, the retail sales of services continued to outperform commodity consumer spending by rising 7.9 percent year-on-year.
The transformation of the consumption landscape is evident in Dalian, the northeastern coastal city of China, which is hosting the Summer Davos.
A prime example is Fisherman's Wharf, a picturesque area reminiscent of San Francisco. To meet the demands of visitors, a diverse range of establishments, including coffee shops and bookstores, have been introduced. During the recent May Day holiday, this popular tourist destination achieved a record-breaking daily footfall of over 30,000 visits.
"Our observation is that the visitors are increasingly willing to pay for unique and sophisticated items and experiences. This trend necessitates a continuous effort to upgrade and innovate their business offerings," said Zhang Hongwei, general manager of the development and operations department at the scenic spot's developer Haichang (Group) Co Ltd. The company's latest investment at the spot is a new stylish fair street put into operation in May.
With China's demographics undergoing significant changes, Zhu Min believes that the age group between 20 and 60 will emerge as the primary driver of consumption in the country's future society. However, the availability of suitable products and services for this demographic remains limited.
To address this issue, the Chinese government has been actively working to enhance the supply in the consumption market. A comprehensive policy package was recently unveiled, aiming to promote new consumption scenarios across various sectors, including tourism, elderly and child care, automobiles, and electronics.
The policy package calls for identifying and meeting the diverse needs of different groups, such as infants, children, pregnant women, and the elderly.
"With a super-large market and a strong supply chain, China's consumption engine, a core driver for tapping its domestic demands, will remain strong," Ding said.
As generative artificial intelligence is increasingly applied to a widening range of sectors, more efforts are needed to ensure the safe application of the fast-growing intelligent technology through global governance and cooperation, said renowned experts and entrepreneurs at the 15th Annual Meeting of the New Champions, also known as the Summer Davos Forum, in Dalian, Liaoning province.
The application of large language models in industries is key to the development of generative AI technology in China, said Zhu Min, former deputy managing director of the International Monetary Fund, adding that China's AI models are more vertical and application-oriented due to the country's abundant application scenarios.
Generative AI refers to computer algorithms trained with huge amounts of data capable of generating content such as images, text, audio and video in a humanlike fashion. It is the key technology underpinning US-based research firm OpenAI's ChatGPT.
Xue Lan, dean of Schwarzman College and dean of the Institute for AI International Governance at Tsinghua University, emphasized that people's willingness to use AI, research capabilities and the establishment of an AI ecosystem led by businesses are critical elements driving the growth of the AI-powered economy.
Although AI generates huge benefits, it also brings about various problems, so Xue called for efforts to supervise or regulate the use of such fast-developing technology to guard against potential risks.
Noting that technological advances in AI are much faster than changes in regulations related to AI, he said China and the United States should strengthen cooperation to promote the safe and healthy development of AI.
Aparna Bharadwaj, managing director and partner at global consultancy Boston Consulting Group, said in an interview with China Daily during the forum that Chinese consumers are the most positively inclined toward AI, adding they are very open and willing to embrace the possibilities of AI technology, which presents an incredible opportunity for Chinese businesses.
Bharadwaj said the most important competitive advantage that China owns in applying generative AI technology lies in consumer acceptance levels, which are much higher than the global average.
"Chinese consumers are very digitally savvy, digital technology evolves in China much faster, and Chinese businesses have been bringing digital innovation much faster in the market," she said.
According to a report released by BCG, 86 percent of interviewed Chinese consumers are aware of generative AI, compared with nearly 80 percent globally.
About 56 percent of these Chinese respondents are very positive toward AI, while less than 10 percent are concerned about this disruptive technology. Meanwhile, 43 percent of global consumers say they are excited about generative AI, but more than 25 percent expressed reservations.
"China has always been an innovation leader in the world. And there's a very high possibility for that innovation also coming from the space of generative AI," Bharadwaj said, adding that she is optimistic about the development potential of such technology in China.
Moreover, Chinese companies are always early adopters of digital technologies and have applied such technologies in a wide range of fields much faster, she said.
Bharadwaj also underlined the significance of protecting user privacy and data security.
"This technology is evolving rapidly, and governments are learning how to regulate it, and they have to be ahead of the curve with the private sector to be able to regulate it."
Wang Guan, chairman of Learnable.ai — an AI startup — said AI-powered models could be applied in the education sector and are playing a role in assisting teachers to mark various types of exam papers.
Wang said the company's large language models have been used in various sectors, such as education, energy, aviation, manufacturing and transportation, to help businesses improve efficiency.
China presents "pockets of opportunities" for PepsiCo's growth, as the US multinational food and beverages company has been stepping up investments in the domestic market, a top executive said on Thursday.
Anne Tse, CEO of PepsiCo Greater China Region and chief consumer officer of PepsiCo Asia-Pacific, said China is one of the most important markets for PepsiCo, as proven over the past few years, and is also one of fastest growing markets globally.
"It is also a market that, because of its dynamic nature, has proven itself to be a source of inspiration for a lot of innovations, which present pockets of opportunities for multinationals like PepsiCo," Tse said in an exclusive interview with China Daily during the 15th World Economic Forum Annual Meeting of the New Champions, also known as the Summer Davos Forum, that concluded in Dalian, Northeast China's Liaoning province, on Thursday.
Amid a global economic slowdown, Tse said the company still sees China as a huge, single market that is highly unified, and the company "remains committed" to the Chinese market.
"The temporary economic cycle that we are facing won't change the company's confidence and commitment here. Instead, we have accelerated our growth pace in the past couple of years in China," she noted.
Tse said that over the past five years, PepsiCo has stepped up investments in the Chinese market, "with a record of five new plants over five years".
Earlier this month, the US food and beverages giant broke ground on its first food production base in Xi'an, Northwest China's Shaanxi province, with a projected total investment of $180 million. It is also PepsiCo's 10th food plant in China.
The facility is designed to meet international "net-zero emission "standards and is expected to begin trial operations in September 2025, with an anticipated production capacity of around 25,000 metric tons to cater to growing market demand in Northwest China.
"Not only that, we are investing behind the brands, including our capability in consumer insights, research and development, and talent to really drive product and brand experience here in China," she added.
As for opportunities, Tse said that the silver economy is pronounced in China, which represents a huge market for multinational firms.
Currently, China's demographic development has entered a "new normal" of moderate population aging. According to data from the United Nations, the proportion of Chinese people aged 65 and above will reach 21 percent by 2034.
She added that the rate at which the silver economy group will get into the market and their needs will be very different in China than their counterparts in other markets.
"So, these pockets of opportunities in China are waiting to be disrupted and waiting to be innovative, which will naturally present opportunities for companies like us to better develop ourselves," she said.
China has great long-term economic opportunities and its economy will have a bright future with investment opportunities in many different sectors, said CEO of US-based Krane Funds Advisors Jonathan Krane, who is very bullish on the Chinese economy and stock market.
Krane made the remarks together with Jeremy Jurgens, managing director of World Economic Forum, and Michael Hillary, group executive financing operations of Development Bank of Southern Africa, during the Annual Meeting of the New Champions 2024, also known as Summer Davos, on Tuesday in Dalian, Northeast China's Liaoning province.
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China is poised to meet its annual growth target of around 5 percent this year, given strong policy stimulus and the gradual recovery in confidence and expectations, experts and global entrepreneurs said on Thursday at the 15th Annual Meeting of the New Champions, also known as the Summer Davos.
The world's second-largest economy is a key source of global demand, playing a significant role in driving the world's economic growth and offering growing opportunities for global stakeholders, they said at the event held in Dalian, Liaoning province.
Despite pressures and mounting uncertainties at home and abroad, they said they believe that China has the capabilities and conditions to deal with structural issues and foster new quality productive forces in the long run.
Peng Sen, president of the China Society of Economic Reform, said he is fully confident that China will achieve its annual growth target of around 5 percent this year, given the support of the adopted macroeconomic policies and the country's accelerated push for fostering new quality productive forces.
"China's economy is on the upswing," Peng said on Thursday at a subforum whose theme was the country's economic outlook. However, "the recovery process doesn't yet have very firm foundations amid insufficient demand, still-weak expectations among the public, and uncertainties, particularly from the external environment", he added.
Advancing reforms will be key to tackling the issues facing the economy, Peng said.
More efforts should be made to provide policies supporting the innovative development of the private sector, accelerate the push for building a unified national market, deepen market-oriented reforms of production factors such as land, capital, labor, technology and data, and address institutional improvements in the market economy system, he added.
Data from the National Bureau of Statistics showed on Thursday that industrial enterprises with annual revenue of at least 20 million yuan ($2.75 million) saw their total profits increase 3.4 percent year-on-year in the first five months of 2024, compared with 4.3 percent in the first four months.
In May, China's industrial profits rose 0.7 percent year-on-year, compared with 4 percent year-on-year growth in April.
In an exclusive interview with China Daily, Joe Ngai, chairman of management consultancy McKinsey China, said the broader economy is still facing pressures from sluggish demand, pointing to market concern over a mismatch in supply and demand.
He said on the sidelines of the Summer Davos that more efforts are needed to improve the offering of consumer goods and services, create more jobs and increase people's incomes.
Meanwhile, Ngai said China's 2024 annual growth target of around 5 percent is achievable amid a steady recovery in confidence, and the country is poised to contribute around one-third of global economic growth.
Zhang Xiaoyan, associate dean of Tsinghua University's PBC School of Finance, said the Chinese economy is gradually shaking off the impact of COVID-19.
Technological innovation, notably artificial intelligence and green industries, will serve as new growth drivers boosting China's growth, Zhang added.
NBS data showed that the equipment manufacturing sector registered rapid profit growth with advanced, intelligent and green development. In the first five months of the year, profits recorded by equipment manufacturing enterprises surged 11.5 percent year-on-year, which was 8.1 percentage points higher than the figure for overall industrial profits.
Svein Tyldum, CEO for North Asia at consultancy Marsh McLennan, said, "The Chinese economy got off to a pretty good start in the first quarter and has some positive factors that have been laying a foundation for achieving its annual growth target.
"China's pursuit of high-quality drivers of production and China's economic development have created greater cooperation space for companies around the world to work together in a more harmonious way," he added.
Tyldum noted that China is Marsh McLennan's second-largest operation in Asia, and the company is committed to the China market, with more investment plans.
US-based smart building solutions provider Johnson Controls expressed strong optimism about the Chinese economy and opportunities in China, saying the company has benefited from the country's steady economic growth over the past few decades.
Anu Rathninde, president of Johnson Controls Asia-Pacific, said: "We appreciate the continuous opening-up in China, and we appreciate the continuous reforms and the support and welcome for foreign enterprises. As China's economy grows, the foreign enterprises grow and benefit equally."
DALIAN -- China's northeastern coastal city of Dalian currently finds itself at the nexus of world attention, as the host of the 15th Annual Meeting of the New Champions.
Running from June 25 to 27, the ongoing event, also known as Summer Davos, has drawn over 1,700 representatives of the political, business, academic and media communities in more than 100 countries and regions to explore new frontiers in revitalizing the sluggish global economy.
Amid discussions among the leading figures, several keywords have emerged, shedding light on the economic trends commanding the world's attention.
Economic growth & cooperation
The global economy is facing challenges such as complex and volatile geopolitical landscapes and increased economic uncertainty.
According to the World Bank, global economic growth is projected to slow for the third consecutive year, declining from 2.6 percent in 2023 to 2.4 percent in 2024. The period from 2020 to 2024 is set to become the slowest five-year span for global economic growth in the past 30 years.
The question of how to stimulate global economic growth and make the economic pie bigger has become a topic of discussion among participants at the three-day grand gathering.
At this year's forum, Chinese Premier Li Qiang provided a feasible solution.
When meeting with Executive Chairman of the World Economic Forum (WEF) Klaus Schwab at the event's opening plenary, Li called on all nations and regions to maintain an open mindset, enhance their mutually beneficial cooperation and jointly seek new frontiers of economic growth.
Echoing Li's remarks, Schwab highlighted the necessity of global cooperation and innovation.
"To drive future economic growth, we must embrace innovation and foster collaboration across sectors, regions, nations and cultures to create a more peaceful, inclusive, sustainable and resilient future," he noted when addressing the opening plenary.
Next frontiers & AI
As a term included in the theme of this year's forum, "next frontiers" for development in the future have been observed as a major topic of several sub-forums.
Future growth points will revolve around new growth engines from technological innovation and green, low-carbon exploration amid a global transformation, said Chen Liming, chair of Greater China of the World Economic Forum.
Among the frontier sectors widely discussed by one panel after another lies the most powerful engine for economic growth: artificial intelligence (AI).
Recent breakthroughs in AI, such as deep learning, generative AI and foundational models, have catalyzed remarkable progress in enhancing human innovation and driving economic development.
"The world is on the cusp of a scientific discovery revolution driven by AI," proclaimed the Top 10 Emerging Technologies report released at this year's Summer Davos.
China
This year marks the 15th occasion that the Summer Davos has been held in China. When the inaugural event convened in Dalian in 2007, China's GDP was approximately $3.5 trillion, accounting for about 6 percent of the global economy.
By 2023, China's economic output had surged to nearly $18 trillion, representing over 17 percent of the global share and establishing China as a primary trading partner for more than 140 countries and regions. This substantial economic scale and steady growth trajectory have consistently placed "China" among the top buzzwords at both winter and summer Davos in recent years.
In an increasingly contentious geopolitical environment, China, as the largest emerging economy, plays a vital role in promoting international cooperation and multilateralism, said Elizabeth Ingleson, assistant professor of international history at the London School of Economics.
Meanwhile, in various domains, ranging from technological development represented by AI to business-model innovation spearheaded by internet platforms, industry insiders participating at the event recognized that China is among the flagbearers, eyeing more spillover effects from China's development of new quality productive forces.
"We're bullish about China going forward," said Shin Hak-cheol, CEO of LG Chem. The chemical giant from the Republic of Korea has built over 10 production bases in China since it entered the market over three decades ago. "We're not downsizing here, and we're really investing for the future."
BEIJING -- As an important window for the rest of the world to understand China, the 2024 Summer Davos once again brings the vitality and resilience of Chinese economy into the spotlight.
As the world grapples with economic uncertainties and geopolitical shifts, the gathering not only brings cooperation opportunities but also offers insights into China's future economic trajectory.
China's robust economic performance has been a key topic for discussion, not least in light of the "China collapse" narrative emanating from Washington.
This bad-mouthing notwithstanding, China has been demonstrating strong economic growth, effective policy measures, and resilience in the face of global economic challenges.
China's ability to maintain steady economic growth against headwinds has been noteworthy. Data from the National Bureau of Statistics showed that China's GDP grew 5.3 percent year-on-year in the first quarter of 2024.
China's proactive fiscal policies, coupled with prudent monetary measures, have helped stabilize the economy and stimulate investment. The resilience of the Chinese economy is further evidenced in its robust export performance and the rapid recovery of key industries post-pandemic.
Thanks to China's commitment to a high-quality opening-up policy and the deepening of its reforms, a more balanced and sustainable economic structure is taking shape.
This structure, focusing on boosting domestic consumption, advancing technological prowess, and enhancing industrial capabilities, is set to steer the Chinese economy out of global economic turbulence.
This year's forum has also brought together global leaders, industry experts, and influential thinkers to discuss pressing economic challenges and explore innovative solutions. The emphasis on green development and technological innovation highlights China's commitment to sustainable growth and its leadership in the global transition towards a low-carbon economy.
China is now home to more than 400,000 high-tech enterprises and over 100,000 specialized and sophisticated small and medium-sized enterprises, which produce new and unique products.
At this year's forum, many participants express their strong interest in cooperation with China's hi-tech sector, demonstrating global recognition of China's innovation capabilities.
They also have high expectations for China's role in contributing to a more just global economic and technological order. Tanvi Ratna, founder and CEO of the Indian research organization Policy 4.0, told Xinhua that as China becomes more active in artificial intelligence (AI) governance, it will help make AI more equitable.
This year's Summer Davos meeting comes at a critical juncture as the world is still grappling with the growth predicament and the persistent threat of protectionism.
As global economic challenges persist, it only fractures economic interdependencies between regions and aggravates tensions and conflict to pursue narrow self-interests at the expense of others, or resort to regressive measures like decoupling, disrupt supply chains, and erect isolationist barriers.
Such moves risk plunging the world into a destructive cycle where heightened competition for a larger share leads to a diminishing economic pie for all.
Over the past years, China's role in global economic governance has become increasingly prominent. As the world's second-largest economy, China's commitment to win-win cooperation is facilitating sustainable economic growth worldwide.
With development initiatives like the Belt and Road Initiative and multilateral platforms such as the Summer Davos, China is firmly committed to strengthening international economic cooperation, building infrastructure, and promoting technological advancement on a global scale.
The 2024 Summer Davos has brought to the fore the importance of understanding China's economic realities beyond the anti-China rhetoric from Washington. As China continues to develop, it will bring vast opportunities for cooperation, investment and common growth to the rest of the world.
JinkoSolar, the world's largest solar panel producer by shipments, said it will press ahead with overseas expansion plans despite the current geopolitical and "overcapacity" challenges, and actively develop its energy storage business to further facilitate a global energy transition.
Even though concerns persist over so-called solar panel overcapacity, which has trimmed the returns of Chinese solar firms, the company believes the most advanced capacity will always remain in demand, while low-end overlapping capacity will always be in surplus, said Qian Jing, vice-president of JinkoSolar, on the sidelines of the World Economic Forum's 15th Annual Meeting of the New Champions, or 2024 Summer Davos.
Qian said the government's recent commitment to limit "low-end" solar panel manufacturing following a representation by industry leaders earlier this month, will better regulate the industry toward a more sustainable development.
The National Energy Administration has vowed to guide capacity expansions and avoid redundant investments, monitoring solar factory utilization and expansion plans to help improve market conditions, in response to solar companies' requests seeking Beijing's intervention after a surge in capacity.
The growth of solar power over the past two decades has been phenomenal, from a niche sector to the world's dominant source of new energy. China and the global market still show strong demand prospects for clean energy, prompting the solar industry's top players to further expand high-efficiency capacity in the long term.
Qian attributed the recent "overcapacity" to investments in the previous years and capital market enthusiasm. Over the long term, she sees an industry shakeout — which is expected to eliminate lagging low-end capacity — as being beneficial for JinkoSolar, as the company has been stepping up efforts in research and development, investing billions of dollars in technological innovation.
With low-end capacity set to be eliminated, the company is confident about its market share rising to 20 percent in 2024 from last year's 15 percent, further consolidating its position at home and abroad, she said.
The company currently operates three overseas factories, in Malaysia, Vietnam and the United States. It is in the process of evaluating its fourth plant abroad, which is most likely to be located in the Middle East, as it enjoys better credit, sufficient financing resources, stable conditions, policy support and an ambitious market, she said. JinkoSolar's commitment toward long-term strategic overseas expansion remains unchanged, while it will also stay cautious when choosing the site, taking into consideration technological standards, costs and competitiveness, she said.
According to Qian, while the current cost of solar power has fallen below that of coal-fired power, the renewable energy source will only become absolutely competitive when the combined cost of solar and energy storage is equal to that of coal-fired electricity.
"Renewable energy's intermittency can only be fully addressed when energy storage costs are on par with coal-fired power. JinkoSolar is significantly investing in energy storage, which is the company's second-largest growth sector," she said.
New energy storage, or energy storage using new technologies such as lithium-ion batteries, liquid flow batteries, compressed air and mechanical energy, is an important foundation for building a new power system in China, enjoying the advantages of quick response, flexible configuration and short construction periods.
JinkoSolar aims to become the world's leading energy storage company within the next three to five years.
The nation's energy storage capacity further expanded in the first quarter of 2024 amid efforts to advance its green energy transition, with installed new-type energy storage capacity reaching 35.3 gigawatts by end-March, soaring 2.1 times year-on-year, according to the National Energy Administration.
New energy development should be shared and the EU-China Comprehensive Agreement on Investment should be renegotiated for mutual benefit, said prominent industry experts and former top government officials at the ongoing 15th World Economic Forum Annual Meeting of the New Champions, also known as the Summer Davos Forum.
Their remarks come at a time when China, the world's second-largest economy, has been subjected to protectionist policies by its major trade partners, including the United States and the European Union, in the new energy sector.
Zeng Yuqun, founder of Contemporary Amperex Technology Co Ltd, the world's largest electric vehicle battery maker, said countries can benefit from new energy by sharing the industry chain.
He proposed what he called a sharing model. Companies can expand their production capacity intelligently, by installing it across the world — for example, 30 percent in Africa that boasts resources, 40 percent in China that has the most intense technology and investment efficiency, and the rest in the US or Europe, which have big markets.
"Through such a sharing model, all countries and regions would benefit and the geopolitical tensions like the tariffs would be left behind… Because, climate change and sustainability are so important for each one of them," he said.
Zeng said CATL has already taken some measures to diversify its overseas market share and is willing to share its technology with every country in the world, including those in the EU, South Korea and the US.
The European Commission said earlier this month it would impose additional duties of up to 38.1 percent on imported Chinese electric vehicles from next month.
As the EU and China have agreed to negotiate, Wan Gang, former minister of science and technology, suggested that the EU should also consider renegotiating the EU-China Comprehensive Agreement on Investment with China, instead of going ahead with the proposed higher tariffs.
The EU-China Comprehensive Agreement on Investment was reached in December 2020 to facilitate trade and investment between European and Chinese companies. Under the agreement, EU firms can get better access to emerging sectors like new energy in China. But the European Parliament voted to freeze the agreement's ratification in May 2021.
"It is necessary for the two sides to negotiate properly to move forward together toward economic globalization. Renegotiating the CAI could be an opportunity," said Wan, who is also the president of the China Association for Science and Technology.
The Chinese authorities said at the Summer Davos Forum on Tuesday that given the current bleak global economic growth scenario, countries that prioritize maximizing their own interests without considering the interests of others, or even backtrack by promoting decoupling and erecting barriers, will drag the world into a vicious cycle of competing for a diminishing pie.
Wan said there is "common consensus" all over the world on developing NEVs, and such a trend is unstoppable. "China will not slow down the development of NEVs just because of some twists and turns. China's auto market is already highly globalized."
According to the China Association of Automobile Manufacturers, China exported 1.2 million NEVs in 2023, up nearly 78 percent.
Among such NEVs, around 30 percent are from Tesla's Shanghai factory, Wan noted, adding that a large number of the cars produced last year were from joint ventures of Chinese and foreign companies.
China is accelerating steps to promote reforms related to the market-oriented allocation of data elements and put data assets into the balance sheets of enterprises, as data has become a new type of production factor and plays an increasingly vital role in bolstering industrial revolution, according to the country's top data governance regulator.
More efforts are needed to speed up the establishment of basic systems for data, facilitate the circulation, transaction and utilization of data, and boost the construction of digital infrastructure, in order to fully unleash the value of massive data resources, said Liu Liehong, head of the National Data Administration.
Liu made the remarks on Wednesday during the World Economic Forum's 15th Annual Meeting of the New Champions, also known as the Summer Davos, in Dalian, Liaoning province.
Liu said that China is stepping up efforts to put data resources into better use as well as establish a data property rights system, a circulation and trading system and a revenue distribution system.
The purpose of allowing companies to include data resources as "intangible assets" in their financial statements is to further encourage them to develop and make use of data, promote the circulation and trading of data resources, and empower social and economic development, Liu noted.
He also called for efforts to ensure data security and protect personal privacy and commercial secrets by leveraging cutting-edge digital technologies such as blockchain.
China's total data output reached 32.85 zettabytes in 2023, an increase of 22.4 percent year-on-year, while the added value of core digital economy industries accounted for 10 percent of GDP, according to the National Data Administration.
The top regulator has unveiled a guideline to expand the application scenarios of data elements in 12 key fields such as industrial manufacturing, modern agriculture, trade circulation, transportation and financial services.
Lee Xiaodong, founder and CEO of Fuxi Institution, a domestic consultancy focusing on the internet and the digital economy, said at the forum that the utilization of data elements in the country is still in its initial stages and the immense value of data is yet to be fully tapped.
China has unveiled a set of accounting rules for corporate data resources. According to the Ministry of Finance, corporate data can be classified as "intangible assets" when it meets relevant requirements in accounting standards, while data held for sale in daily business activities can be recognized as inventory.
Ouyang Rihui, assistant dean of the China Center for Internet Economy Research at Central University of Finance and Economics, said, "With the rapid development of the data elements market, an increasing number of enterprises have attached great importance to the accumulation, development and application of data assets, and begun to incorporate data into their balance sheets to better reflect the real value and asset status of enterprises."
Data elements have the attributes of commodities, which could be effectively allocated through market evaluation and trading, in order to create huge economic and social value, Ouyang said.
More efforts should be made to promote the confirmation of data-related rights as well as explore a data pricing mechanism and value assessment system, in order to give full play to the value of data and boost the development of the country's digital economy, he added.
Statistics from the National Industrial Information Security Development Research Center show that revenue derived from China's data elements market is projected to rise to 198.9 billion yuan ($27.4 billion) in 2025, with the compound annual growth rate surpassing 25 percent during the 14th Five-Year Plan (2021-25) period.
The European Union should reconsider the negotiation of the EU-China Comprehensive Agreement on Investment with China to replace the current tariff negotiation for mutual benefits, said a former minister of science and technology on Wednesday.
Wan Gang, president of the China Association for Science and Technology, said: "As the EU and China agreed to sit down to negotiate on the new energy vehicle tariff dispute, it is an opportunity for both sides to renew the negotiation of the CAI. If so, the tariff is no longer necessary for EU."
The Comprehensive Agreement on Investment, or CAI, was set to facilitate trade and investment between European and Chinese companies and was set aside by the EU in 2021.
"It is now necessary for the two sides to negotiate properly to together move forward towards economic globalization," said Wan, who is also former minister of science and technology.
Wan made the comments at a session co-held by Caijing Magazine during the ongoing 15th World Economic Forum Annual Meeting of the New Champions, also known as the Summer Davos Forum, held in Dalian, Northeast China's Liaoning province.
Amid rising protectionism from United States and Europe in new energy sector, Wan emphasized that developing NEV is a "common consensus" from all over the world.
"Such a trend is unstoppable. China will not slow down developing NEVs just because of some twists and turns. Instead, the country would still do its job well in a down-to-earth manner," he said.
The 15th Annual Meeting of the New Champions, also known as the Summer Davos, opened on Tuesday in the coastal city of Dalian in Northeast China's Liaoning province.
Over 1,700 representatives of the political, business, academic and media communities from more than 100 countries and regions are attending the three-day meeting.
Though there are diverse views on the "Next Frontiers for Growth," the theme of the 15th Annual Meeting of the New Champions, there is consensus that cooperation is paramount to successfully navigating the rapidly evolving world.
DALIAN -- The call for strengthened partnership has rung clear at the ongoing 2024 Summer Davos as the world seeks new growth engines to propel a sluggish global economy.
Over 1,700 representatives of the political, business, academic and media communities in more than 100 countries and regions are attending the three-day meeting, which kicked off on Tuesday in the coastal city of Dalian in Northeast China's Liaoning province.
Though there are diverse views on the "Next Frontiers for Growth," the theme of the 15th Annual Meeting of the New Champions, there is consensus that cooperation is paramount to successfully navigating the rapidly evolving world.
Expanding the pie together
The grand gathering is taking place amid an increasingly uncertain global landscape. Klaus Schwab, founder and executive chairman of the World Economic Forum, highlighted the significant issues facing the world today -- issues such as environmental concerns, geopolitical tensions, and social challenges like pandemics and rising income inequality.
Since the outbreak of the COVID-19 pandemic, the global economy has been mired in sluggish recovery. While the World Bank and the United Nations have raised their projections for global economic growth in 2024, they caution that the pace of growth remains below the annual average of the decade before the pandemic.
Facing the global economic growth dilemma, countries that prioritize maximizing their own interests without considering the interests of others -- even backtracking by promoting decoupling and erecting barriers -- will drag the world into a vicious cycle of competing for a diminishing pie, Chinese Premier Li Qiang said when addressing the event's opening plenary.
"The correct course of action is to approach development issues with a broader perspective and a more inclusive mindset, seeking one's own legitimate interests within the framework of expanding the pie together," Li said.
Global cooperation and long-term cooperation to move to new horizons is essential, Schwab said, echoing Li's sentiment.
China remains key growth engine
Owing to China's resilient recovery, the world's second-largest economy has emerged as a significant force in bolstering global economic expansion.
The Chinese economy has shown a robust performance this year, with a year-on-year growth rate of 5.3 percent in the first quarter and a sustained positive trajectory in the second quarter.
Recognizing this, the International Monetary Fund has revised its 2024 GDP growth forecast for China from 4.6 percent to 5 percent, citing the country's strong first-quarter growth and recent policy initiatives.
"China is confident it will meet its annual GDP growth target for this year," Li said.
Fred Hu, founder, chairman and CEO of Primavera Capital Group, said that China has the ability to drive global economic growth, particularly in developing countries.
Shared growth dividends
With its huge market, strong manufacturing capabilities and leaps in technological innovation, China is both a beneficiary of openness and a catalyst for a virtuous global economic cycle, Hu said.
A total of 21,764 foreign-invested firms were established in China in the first five months of this year, a year-on-year increase of 17.4 percent.
Over the past six years, the China International Import Expo, the world's first national-level expo to promote imports, has attracted the participation of more than 10,000 overseas enterprises and seen the release of more than 2,400 new products, technologies and services.
"We're bullish about China going forward," said Shin Hak-cheol, CEO of LG Chem. The chemical giant from the Republic of Korea has built over 10 production bases in China since it entered the market over three decades ago. "We're not downsizing here, and we're really investing for the future."
While opening up its market, China has also contributed to the global green shift by providing high-quality and cost-effective new energy products, including electric vehicles, lithium batteries and photovoltaic products.
"We are willing to share our technology with others around the world as addressing climate change and promoting sustainability are so important for every one of us," said Robin Zeng, founder and chairman of leading Chinese battery manufacturer Contemporary Amperex Technology Co Ltd.
Greater global cooperation in trade and investment is needed to bolster the world's economic recovery and deal with mounting challenges like decoupling, supply chain disruptions and geopolitical tensions, said speakers at the 15th Annual Meeting of the New Champions, also known as the Summer Davos Forum, in Dalian, Liaoning province, on Tuesday.
Ren Hongbin, chairman of the China Council for the Promotion of International Trade, said China's foreign trade is facing both challenges and opportunities. Regional conflicts, climate change, rising protectionism and unilateralism have a huge impact on trade routes, international trade systems and global industry chains, he noted.
Ren said the number of developing countries and emerging markets accounted for 56.7 percent of China's foreign trade partners, surpassing that of developed countries, while the exports of high value-added products like mechanical and electrical products have taken up about 60 percent of China's total exports.
China has been the world's largest exporter since 2009, and is now the second-largest importer. According to Ren, the Association of Southeast Asian Nations has become China's largest trading partner, followed by the European Union, the United States, Japan and South Korea.
China has played a vital role in ensuring the stability and security of global industry and supply chains, Ren said, adding the country has shown its willingness to strengthen cooperation with the US in the field of trade and investment to achieve win-win results.
Data from the General Administration of Customs showed that China's total trade in goods reached 17.5 trillion yuan ($2.4 trillion) in the first five months of this year, up 6.3 percent year-on-year.
The country's exports rose 6.1 percent year-on-year in the January-May period, while imports climbed 6.4 percent.
China ranked as the largest manufacturer for the 14th consecutive year in 2023, when its manufacturing output accounted for nearly 30 percent of the global total, according to the Ministry of Industry and Information Technology.
Li Dongsheng, founder and chairman of consumer electronics maker TCL Technology Group Corp, said globalization is an irreversible trend and any protectionist policies that aim to change the routes of global trade will not be sustainable.
Li emphasized that China's manufacturers should shift from exporting products to exporting industrial capacities, establish industry chains overseas and boost the development of local economies, so as to cope with changes in the global economic landscape amid rising trade protectionism.
Li said TCL has stepped up efforts to strengthen its capacity in global operations. In the past two decades, the company has established more than 20 manufacturing bases around the world, with sales of terminal devices, including electronic products and home appliances in overseas markets, accounting for more than 60 percent of its revenue.
Maggie Chen, professor of economics and international affairs at George Washington University, said: "We are seeing export growth in certain industries that are contributing to green energy and clean energy products. China has been able to significantly improve the efficiency and productivity in producing these green products."
Despite the pressure of lackluster domestic demand, China still has the capability and conditions to further tap consumption potential to sustain high-quality growth, experts and entrepreneurs said at the 15th Annual Meeting of the New Champions, also known as Summer Davos Forum, in Dalian, Liaoning province on Tuesday.
"China is moving to a higher-income country," Zhu Min, former deputy managing director of the International Monetary Fund, told a forum on the theme of "Reinvigorating Consumption" on Tuesday. "The real big chance is on the consumption bundle. The consumption basket changed dramatically."
He noted a shift in consumption from people's needs in basic consumer goods like clothes, transportation and housing to advanced consumption in services including education, healthcare, entertainment and tourism. "So I think in the future we need to upgrade on the supply side to provide a service consumption bundle to the consumer."
Zhu also noted the rising Chinese household savings indicate the still-weak consumption desire and a supply-demand mismatch. He highlighted the importance of tackling issues surrounding consumer confidence, future uncertainties and social security.
Data from the National Bureau of Statistics showed that retail sales, a key measure of consumer spending, rose 3.7 percent year-on-year in May versus 2.3 percent in April.
Zhu said he is confident that China has huge potential to further boost domestic consumption given the potential growth in services consumption and the future development of the consumption sector. "We need to focus on policy to stimulate service consumption and service development, such as reforms in the services sector, and expand opening-up in the services sector."
Hannah Qiu, senior vice-president and China CEO of Paypal, took stock of the new trends in the China market, saying that while consumers are looking for better pricing for basic goods, the younger generation is more focused on experiences and unique designs and willing to pay extra money for that.
"These consumption downgrades and upgrades may happen in one person. So you can see very different trends," Qiu said. "They're willing to pay for big-ticket products, but they're also looking for smart bargains at the same time."
Paypal's Chinese customers are mostly small and medium-sized enterprises selling in the global market, Qiu said. Such companies have already transformed their business models, trying to build up more value-added services, even for physical goods. "They are not stopping after purchasing the products. They're looking for continuous upgrades or services, even after the purchase transactions are done."
"We see big opportunities to boost consumption and we also see these opportunities for Chinese manufacturers to upgrade their products, with a focus on design, (after-sales) services and better protection for the customer," Qiu said.
Pierluigi Antonelli, CEO of German healthcare conglomerate Fresenius Kabi, said: "For us, China is one of the top three markets on a global basis, which is the reason why we act very local in China. We have three R&D centers. We have heavy production with four sites and also a commercial unit."
He said China is actively developing the silver economy. More growth opportunities, he said, will arise in terms of services and goods for the elderly in China as the country has the world's largest senior population.
In the next five years, China's economic development will no longer lead to growth in carbon emissions and instead make a significant contribution to the global efforts to combat climate change, energy company executives and industry experts said.
China's installed capacity of new energy is expected to more than double in the next five years, and rise from the current 1.1 billion kilowatts to 2.4 billion kilowatts by 2030, said China Huaneng Group Chairman Wen Shugang during the World Economic Forum's 15th Annual Meeting of the New Champions, or 2024 Summer Davos, which opened here on Tuesday and will run until Thursday.
This will bring significant opportunities for the global energy technology industry, he said.
By 2030, the proportion of clean energy generation will exceed 50 percent, and the share of electricity in end-use energy consumption will reach about 34 percent. Power supply will become cleaner, safer, more efficient and smarter, driving society toward green production and lifestyles, he said.
Wen suggested strengthening cooperation in energy technology innovation, so as to build an open and innovative ecosystem, leveraging each country's strengths to deepen technological collaboration and promote cross-border technology applications for mutual benefit and win-win outcomes.
Accelerating breakthroughs in new energy, long-term energy storage, low-cost green hydrogen and ammonia, and large-scale carbon capture technologies will help promote the deep integration of energy and digital technologies, he said.
While the risks posed by climate change to ecosystems and livelihoods are increasingly evident and consequential, industry participants will need to scale up policies and advanced technologies geared to making progress toward a carbon-neutral and nature-positive future, said Robin Zeng, founder and chairman of Chinese battery manufacturer Contemporary Amperex Technology Co Ltd.
"We are also willing to share our technology with each one in the world, helping build battery factories while coming up with industry chains across the globe," he said.
Large, or grid-scale, energy storage systems enable the integration of renewable energy sources, which may have intermittent or variable output depending on weather conditions, into an energy grid while enhancing stability and reliability.
Driven by robust new energy vehicle demand, China's power battery industry has seen growing sales and output in recent years, with emerging technologies expected to accelerate its high-quality development in the short term.
Guo Shougang, deputy director of the equipment industry department at the Ministry of Industry and Information Technology, said earlier that with government support, China leads in both the quality and quantity of batteries, where power batteries serve as the core component of NEVs and are the main driver in automotive electrification.
Experts also said additional investments and actions are needed for countries to meet their climate goals.
China has progressed significantly in recent years, primarily driven by long-term efforts to increase the share of clean energy and enhance their grid reliability, according to a report jointly released by global consultancy Accenture and World Economic Forum in June.
In 2023, China also significantly scaled up its renewable energy capacity and continued to grow and invest in its manufacturing capability in clean technologies such as batteries for electric vehicles, solar panels, wind turbines and other critical technologies, while it is also leading in developing new energy solutions and technologies, said the report.
Clean energy investment continues to be concentrated in advanced economies and China, underscoring the need for financial support from advanced nations to facilitate an equitable energy transition in emerging and developing nations and forward-thinking policymaking in all nations to foster truly conducive investment conditions, it said.
Urgent action is needed. Global decision-makers must make bold moves to regain momentum in the transition toward an equitable, secure and sustainable energy future, said Espen Mehlum, head of energy transition intelligence and regional acceleration of the World Economic Forum.
