Column: Why China's economy remains resilient despite external shocks

Though external uncertainties persist, China's economy is rooted in solid fundamentals, smart policymaking, consumption potential and innovation-driven momentum.

by Xin Ping

China's April economic data was considered as "exceeding expectations" among industry insiders. One foreign media outlet commented that "amid trade conflicts, China has successfully avoided an economic slowdown."

But how has China maintained economic stability facing external pressures? Let's examine two recent developments:

On the same day as the data's release, Huawei held a product launch event, debuting its HarmonyOS-powered computer. A day later, Xiaomi announced the mass production of its independently developed Xuanjie O1 smartphone chip using 3-nanometer process technology.

No form of containment or suppression can disrupt or has disrupted China's strides in independent innovation and growth. This unwavering confidence and self-reliance are precisely what enabled China's economy to deliver an above-expectations performance in April.

GRASSROOTS INNOVATION

In early April, a visit to Yiwu, Zhejiang Province -- the "world's capital of small commodities" -- uncovered how businesses collaborate to build brands and showcase high-quality products to global buyers.

Shifting from OEM models to self-owned brands, the Yiwu Selection has launched overseas flagship stores. On the opening day in January, its global debut store secured orders worth 120 million yuan. By February, its European branch opened in Venice, Italy.

Within months, the initiative boosted sales for over 190 Yiwu brands by more than 100 million yuan, partnering with business entities in 11 countries.

Many Yiwu exporters are innovating and extending supply chains to strengthen competitiveness. As one local merchant put it: "With quality products and big markets, we fear no turbulence."

The cumulative momentum of individual businesses underpins China's broader economic growth. In April, China's total goods imports and exports grew 5.6 percent year-on-year, with exports surging 9.3 percent.

STRUCTURAL STRENGTHS

In the first four months, China's exports of high-tech electromechanical products increased by 9.5 percent year-over-year, reflecting growing global competitiveness. Meanwhile, private enterprises, leveraging market diversification, saw imports and exports climb 6.8 percent during the same period.

April's export boom is not a mere coincidence -- it originates from the continued adjustments of the economy as well as its unique advantages:

-- Scale and resilience: As the world's largest manufacturing hub (holding the top spot for 15 years) and a leading consumer market, China's vast economic scale ensures robust risk resilience.

-- Structural upgrading: By steadfastly advancing industrial restructuring, nurturing new productive forces, and building a unified domestic market, China has secured developmental autonomy to counter external shocks.

-- Calibrated policies: Incremental measures implemented since late 2023 have stabilized expectations, with targeted policies in place for employment, enterprises, and the market. Subsequent directives from China's Central Economic Work Conference and the annual sitting of the National People's Congress have ensured policy continuity.

GLOBAL RECOGNITION

Recent rate cuts, trade facilitation policies, and liberalization of the service sector signal further growth. As new policies take effect, China's economy is better positioned to navigate challenges.

International institutions have upgraded growth forecasts, while multinational executives increasingly view China as an oasis of certainty.

Though external uncertainties persist, China's economy is rooted in solid fundamentals, smart policymaking, consumption potential and innovation-driven momentum.

Editor's note: The author is a commentator on international affairs, writing regularly for Xinhua News, Global Times, China Daily, and CGTN. He can be reached at xinping604@gmail.com.

The views expressed in this article are those of the author and do not necessarily reflect the positions of Xinhua News Agency.■