Global Times: Is China's economic policy strong enough?

BEIJING, March 6, 2026 /PRNewswire/ -- Currently, some observers have claimed that China's economic policies are "not strong enough" and that the country has done "too little to stimulate" growth. This "policy passivity" narrative is not only factually inaccurate but also misunderstanding and underestimation China's economic governance wisdom.

The assertion that China has "done too little" reflects a misunderstanding of its approach, which combines an effective market with a proactive government. China's economy is an ocean, not a small pond. The strength of macroeconomic policy lies first in setting the course. China's economic development is characterized by foresight and stability. Five-year plans and sector-specific development plans serve as guiding signposts, pooling together the forces that drive growth.

More than a decade ago, while many countries were still debating whether green transformation was necessary or feasible, the Chinese government had already proposed the development of strategic emerging industries, providing important directional guidance. From emerging industries to future-oriented industries, from "Internet+" to "AI+," these new fields, industries, and business models - pioneering global economic development and meeting the demands of future innovation - were initially regarded as high-risk, "uncharted waters." A proactive government safeguards the bottom line while acting as a navigator, whereas an effective market unleashes vitality, allowing enterprises to ride the waves competitively. The result is an economic order that is both dynamic and well-regulated.

The claim that China's policies lack "intensity" fails to recognize the country's strategic determination to avoid "stimulus dependence" and steadfastly pursue high-quality development. This year's Government Work Report sets a GDP growth target range of 4.5 percent to 5 percent, deliberately leaving room for structural adjustments, risk prevention, and reform.

While some remain fixated on GDP numbers, China's "new three drivers" are already making waves in global markets. The 15th Five-Year Plan focuses on cultivating future industries such as biomanufacturing, quantum technology, and embodied artificial intelligence. At the same time, China has lifted 800 million people out of poverty, achieving a historic milestone in human development. The plan emphasizes meeting people's growing aspirations for a better life as the fundamental goal of economic and social development. Isn't this ability to concentrate resources through institutional advantages and plan for the long term the truest form of policy strength?

China's policies are neither rigid nor mechanical. They are continuously refined in response to market dynamics and economic developments, reflecting a truly scientific approach. For example, fiscal and monetary policies maintain overall stability while making adjustments according to domestic and external conditions, minimizing fluctuations and creating a favorable environment for domestic and foreign enterprises alike. Ahead of the annual two sessions, the US-based Eurasia Review editorial noted that China is "embracing a more mature phase of development." China's targeted and calibrated policy approach not only avoids the aftereffects of abrupt policy shifts but also provides market participants with stable expectations - a hallmark of a mature economy's macroeconomic management.

Evaluating China's economic performance requires more than looking at GDP growth; it also requires assessing quality improvements and resilience. Over the past five years, despite multiple shocks including geopolitical conflicts, the COVID-19 pandemic, and rising trade protectionism, China's GDP has successively surpassed 110 trillion yuan, 120 trillion yuan, 130 trillion yuan, and 140 trillion yuan, maintaining a stable average annual growth rate of 5.4 percent.

By comparison, according to IMF and World Bank data, global economic growth rate has been only 3.4 percent to 3.9 percent, fluctuating significantly across different years, with some developed Western economies growing at only around 1 percent. Beyond scale, China's economy has achieved qualitative leaps: manufacturing value added remains the largest in the world, technological self-reliance is accelerating, new quality productive forces are emerging, and high-value-added exports demonstrate strong resilience. In 2025, the number of newly established foreign-invested enterprises in China rose by 19.1 percent against the global headwinds. These tangible results are a key reason why global capital continues to place its trust in China.

It is also worth noting that, amid the uncertainties posed by protectionism, China has consistently honored its commitments, coordinating with WTO members that share common understandings and principles. By upholding core principles such as most-favored-nation treatment and national treatment, lowering tariffs, shortening the negative list for foreign investment, advancing the scheduled independent customs operations of the Hainan Free Trade Port, promoting the stability of global industrial and supply chains, China has helped stabilize global industrial and supply chains and strengthened confidence in economic globalization.

The so-called "policy passivity" claim either fails to grasp the deeper logic of China's model of "winning through quality" or deliberately distorts reality to profit from pessimistic narratives. According to Société Générale, macroeconomic policies and structural reforms will remain key drivers of China's economic growth in 2026. China's economy is a giant ship with its own speed and course. It will neither lose its bearings due to external noise nor alter its direction because of temporary storms. By maintaining strategic composure, fully utilizing policy space, and steadily advancing high-quality development, facts and data will ultimately speak for themselves. This is the most powerful response to all forms of skepticism.

SOURCE Global Times