Global Times: Why China's economy so stable despite external challenges?

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May 23, 2025, 12:15 ET

BEIJING, May 23, 2025 /PRNewswire/ -- "In April, China's economic data showed resilience despite intensifying external challenges, especially as the exports expanded rapidly. Why is the economy so stable amid external challenges?" This is a question that a reader of people.cn posted.

On May 19, China released economic figures for April, with "stronger than expectations" emerging as the dominant reaction among analysts. Some foreign media outlets commented that the economy has "showed surprising resilience, a sign that government support measures may have cushioned the impact of a trade war with the US that threatens to derail momentum in the world's second-largest economy."

Why is the Chinese economy so stable despite external challenges? The answer can be found from two examples.

Strong internal dynamics

Also on May 19, Chinese tech giant Huawei unveiled two laptops powered by HarmonyOS, marking the debut of its self-developed operating system on personal computers. A day later, another Chinese tech firm Xiaomi announced that its first self-developed 3-nanometer mobile chip, Xring O1, has entered mass production.

No form of containment or suppression can disrupt China's pace in achieving self-dependent innovation and growth. It is precisely such confidence and self-reliance that enabled the economy to deliver a result "exceeding expectations."

In early April, the People's Daily reporters visited Yiwu, the world's largest wholesale market for small commodities in East China's Zhejiang Province, where store owners were busy building their brands and enhancing product quality.

Shifting from the mode of original equipment manufacturer to building their own brands, Yiwu brands unite for overseas expansion with Yiwu Selection Store.

In January, the first Yiwu Selection Store was launched, and secured signed orders totaling 120 million yuan ($16.67 million) on the first day of its grand opening. Later in February, the first Yiwu Selection Store in Europe was opened in Venice, Italy. In just a few months, the project has helped more than 190 brands in Yiwu to increase revenue by over 100 million yuan and expand cooperation with 11 countries. Diversification shields them against unilateralist challenges.

Many export-oriented manufacturers in Yiwu also proactively engage in innovation and extend their industrial chains to enhance their competitiveness. A Yiwu merchant encapsulated this sentiment well, "With quality products and extensive sales channels, we're unafraid of changes."

It is precisely the internal momentum of numerous individual market entities that has contributed to the overall economic upward trend.

Overall capacity elevated

In April, China's total import and export of goods in yuan-denominated terms expanded 5.6 percent year-on-year, according to data released by the General Administration of Customs on May 9.

The country's goods exports rose 9.3 percent year-on-year last month. In terms of export categories, technology-intensive mechanical and electrical products demonstrated sustained market competitiveness. In the first four months, exports of these goods grew by 9.5 percent year-on-year.

From the perspective of business entities, private export-oriented companies have effectively navigated external challenges through strategies like market diversification. During the same period, private sector imports and exports expanded by 6.8 percent year-on-year.

Meanwhile, a country's foreign trade does not exist in isolation. China's rapid export growth in April reflects the elevation of its overall capacity thanks to the high-quality economic development.

For instance, as an ultra-large economy, China has maintained its manufacturing dominance for 15 consecutive years, and boasts one of the world's largest consumer markets with great growth potential. These structural advantages underscore the country's strong capacity to deal with various risks and challenges.

In addition, China unswervingly promotes economic structural adjustment and shifting between old and new growth drivers, develops new quality productive forces according to local conditions, moves faster to create a new pattern of development, and vigorously strengthens domestic circulation to keep itself well-positioned for pursuing development. All of these efforts have provided critical guarantees for dealing with drastic changes in external environment.

Stepped-up policy support

China has stepped up macroeconomic adjustments. A meeting of the Political Bureau of Communist Party of China (CPC) Central Committee held on September 26, 2024 decisively deployed a package of incremental policies, resulting in an economic trajectory characterized by high growth at the beginning, a slowdown in the mid-phase, and a rebound near the end of last year.

Several key meetings including the Central Economic Work Conference held at the end of 2024, this year's two sessions and the meeting of the Political Bureau of CPC Central Committee held on April 25 have made arrangements on economic work. While maintaining policy continuity, these policies put efforts on stabilizing employment, business, market expectations, which have played an important role in sustaining economic recovery.

The authorities have rolled out policies such as interest rate and reserve requirement ratio cuts, accelerating the integration of domestic and foreign trade, and expanding comprehensive pilot programs to accelerate the services industry's opening-up. Along with the implementation of the new policies, China has conditions, capability and confidence to deal with any risks and challenges.

An economy's true strength is most evident during adversity, and this resilience further reinforces confidence and resolve in achieving growth targets.

International institutions have upgraded their forecasts for China's economic growth recently. Many multinational executives now regard China as a synonym for "certainty."

As always, China's economy grows in storms and waves, and gets stronger through hard times. While future international environments will remain volatile and uncertain, history has proven and will continue to prove that China's recovery is underpinned by solid fundamentals, policy support, consumption potential and innovation-driven dynamism.

We have the confidence and determination that China's development will have a bright future.