China's breakthroughs enhance confidence in future development

The verse, "Fear not you have no admirers as you go along, there is no connoisseur on earth but loves your songs", written by the Tang Dynasty (618-907) poet Gao Shi, whose legacy was portrayed in the popular animated film 30,000 Miles from Chang'an, provides an insight that will hopefully allay recent concerns about the economic future of the country and the Hong Kong Special Administrative Region.

Three years of the COVID-19 pandemic generated massive economic shockwaves that have put businesses, especially small and medium-sized enterprises, in a vulnerable position. While COVID-19 and the anti-pandemic restrictions have basically gone, it will take a protracted period for economic recovery to progress in phases.

On the one hand, the recovery is hampered by lackluster domestic demand, and it will take time for the initiatives for expanding domestic consumption and deepening supply-side structural reforms to produce synergistic effects. On the other hand, a complex international landscape shaped by US-led attempts to remove China from the global supply chain is also inhibiting global economic recovery.

In its latest economic forecast in September, the Organization for Economic Cooperation and Development (OECD) raised this year's expected global economic growth to 3 percent, but lowered the figure to 2.7 percent for next year.

Specifically, Germany is expected to fall into recession this year with a mere 0.9 percent economic growth next year; the US' economy is estimated to grow by 2.2 percent this year and to fall to 1.3 percent next year; China's economy is projected to expand by 5.1 percent this year and moderate to 4.6 percent next year. These economic forecasts indicate that China's economy is in good shape, enjoying a much stronger growth momentum than other major economies and remaining a major engine to drive global economic growth.

Apart from the OECD data, there are three observations that provide evidence of China's enormous economic potential and resilience, as well as its enduring success. Hong Kong's economy is enjoying an ever-increasing growth momentum by virtue of its integration into national development.

First, China has confidence in technological development.

President Xi Jinping laid out his new concept of "high-quality productive forces" during his inspection visit to Heilongjiang province, emphasizing the need to integrate the resources of technological innovation and pioneer the development of strategic emerging industries and industries of the future, so as to accelerate the formation of new, high-quality productive forces. Since June, the country has made great strides in this area.

For instance, the launch of the Huawei Mate 60 series is a breakthrough in overcoming the US' technology ban on the company; the domestically produced C919 passenger aircraft has broken up the Boeing and Airbus duopoly; the new energy vehicles have enabled China to surpass Japan to become the world's largest automobile exporter; the successful completion of the Jakarta-Bandung high-speed railway jointly built by China and Indonesia has boosted overall confidence in Chinese technology.

These examples are a testament to China's prowess in key technologies, allowing the country's scientific and technological capabilities to advance by leaps and bounds and scale new heights. Science and technology is the primary productive force that will help promote the high-quality development of the Chinese economy, as well as a testament to the country's enormous economic potential and resilience.

Second, China has a wide circle of friends.

Inclusive economic development entails the exchange of goods and services among countries and regions according to needs so that all parties benefit. Economic globalization connects the whole world into a unified market in which countries apply their comparative advantages in technology, labor, and capital, to achieve divisions of labor in the global economy. This forms an efficient global value chain that allows all players to reap benefits from the process of economic globalization. In other words, whoever is connected to this unified market will benefit, and those disengaged from it will inevitably lose out.

As the Hangzhou Asian Games is running at full force, China is not only welcoming guests and friends from all over the world, but is also expanding its relations with other countries. For example, China has recently established a strategic partnership with Syria, and elevated ties with East Timor to a comprehensive strategic partnership. In addition, representatives from more than 130 countries have confirmed they will attend the third Belt and Road Forum for International Cooperation, to be held in Beijing in October, accounting for nearly 70 percent of nations worldwide.

It is, therefore, fair to say that China has the widest friendship circle in the world. Whoever is connected to China in this unified market will benefit, while those which decouple from China and abandon this unified market will lose out.

Third, China has gained the initiative in the diplomatic front.

It has been five years since the US launched a trade war against China and joined forces with its Western allies to sanction Huawei in 2018. Not only has Washington failed to advance its strategic agenda of removing China from the global supply chain, it has also fallen short of its ambition to knock Huawei down. The sanctions, however, have backfired on the US, causing high inflation and the risk of economic stagnation in the US. In the face of economic pressure, the US dispatched Secretary of Commerce Gina Raimondo to visit China in August, where she reached a consensus with China on a number of economic issues.

Raimondo's trip was followed by the UK Foreign Secretary James Cleverly's visit to China. That Cleverly is the first senior British minister to visit Beijing in five years suggests that the UK is taking the initiative to improve Sino-British relations. In September, the European Union dispatched senior officials to Beijing to co-chair the 10th EU-China High-level Economic and Trade Dialogue, in which the EU expressed its hope for enhancing economic and trade cooperation with China and further consolidating China-EU relations. The series of visits by foreign officials and diplomats suggests that, whether it is the US, the UK or the EU, they have now come to their senses and are willing to compromise with reality, while China seizes the diplomatic initiative. Now that China, the US and the EU, which comprise the world's largest economies, have eased tensions and sought pragmatic cooperation, the recovery of global economic growth will be catalyzed.

In conclusion, while the global economic recovery may face challenges and uncertainties, the Chinese economy shows remarkable resilience and potential for development. The country's focus on technological innovation, its extensive network of international partnerships, and its proactive approach in shaping global economic dynamics give it a significant advantage. As Hong Kong is strategically integrated into overall national development, it stands to benefit from these positive trends. By staying connected, embracing innovation, and leveraging opportunities for cooperation, Hong Kong and its businesses can navigate the capricious economic landscape and recognize their worth in contributing to the country's growth.

The views do not necessarily reflect those of China Daily.