over 400 million tons of grain were purchased, 3.68 billion passengers and 3.91 billion tons of goods were delivered by national railways, the postal industry delivered more than 160 billion items, and the equivalent of domestic oil and gas production exceeded 390 million tons. recently, a series of economic data have been released one after another, causing extensive attention from foreign media. foreign media believe that china's economy has rebounded and the overall stable recovery of the economy has injected momentum and confidence into global economic growth.
recovery continues in many areas
recently, the data of the good development of the chinese economy in many fields has attracted the attention of foreign media.
on january 7, china's state administration of foreign exchange released data showing that as of the end of december 2023, china's foreign exchange reserves amounted to $3,238 billion, up $66.2 billion, or 2.1%, from the end of november. according to the wall street journal, this is the second consecutive month that china's foreign exchange reserves have increased. singapore's lianhe zaobao reported that the size of the foreign exchange reserves is higher than the $3.2 trillion indicated by a reuters analyst poll. china is now the world's largest holder of foreign exchange reserves.
according to the wall street journal website recently reported that the december 2023 caixin china general service industry operating activity index (service pmi) released on january 4 further rose to 52.9, the highest after july 2023. a reading above 50 indicates expansion, while a reading below 50 indicates contraction. services output has now risen for 12 consecutive months. specifically, the growth rate of new orders was considerable, setting a record since june 2023; demand in overseas markets also continued to improve, with companies hiring more workers for the first time in three months. looking ahead to the next 12 months, industry optimism rose to a three-month high.
in addition, the wall street journal website also quoted caixin data that the composite pmi in december 2023 rose to 52.6 from 51.6 in november, a new high since june 2023. this suggests strong expansion in both manufacturing and services output. according to the financial times, global mining company rio tinto group is confident that china's manufacturing activity will continue to pick up. rio tinto chief executive stone said china's infrastructure and automotive sectors were "very prosperous" and demand was strong. "i believe this is not a short-term phenomenon," he said.
china's tourism industry boomed during the three-day new year's day holiday, with 135 million domestic trips, up 155 percent from last year, bringing in 79.73 billion yuan in domestic tourism revenue, reuters reported. it is worth noting that this figure is also 5.6% higher than in 2019, not only consolidating the recovery momentum of the industry, but also surpassing the pre-covid-19 performance. bloomberg reported that the recovery of china's tourism industry is a welcome sign. according to the skift website, michael jones, co-founder of the consulting firm "create consulting", said that 2023 is the year when china re-opens to the world, and 2024 will be the year to consolidate and develop outbound tourism. jones believes the economic rebound is playing a key role in driving leisure travel.
multiple factors are driving growth
in 2023, china implemented macroeconomic policies to support economic resilience, including development strategies that helped create a strong and stable environment. measures such as issuing government bonds, cutting taxes and fees, and increasing financial support in key areas will also help china's economy defuse risks, experts said. according to the national bureau of statistics, in the first three quarters of 2023, domestic demand contributed 113% to china's economic growth, of which final consumption expenditure contributed 83.2% to economic growth.
"the pace of china's reform and opening-up has never slowed down. china not only sells its products around the world, but also actively imports goods from many countries and regions." ria novosti reported that major international trade events such as the china international import expo, the china international fair for trade in services, the canton fair and the china international consumer goods expo have opened windows for china to further open up to the outside world. analysts point out that today's upturn in china's economy is just the beginning and will benefit all partners.
on december 15, 2023, the people's bank of china issued an announcement that in order to maintain reasonable and abundant liquidity in the banking system, hedge the impact of short-term factors such as government bond issuance and payment, and properly supply medium - and long-term base money, the people's bank of china carried out 50 billion yuan open market reverse repurchase operations and 1,450 billion yuan medium-term lending facility operations on the same day. bloomberg's commentary said, "china's policy mix gives investors hope for a rebound in the market."
selczuk cholakoglu, founding director of the asia-pacific research center of turkey, expressed optimism about china's dynamic economic growth. he said it was not surprising that the chinese economy was outperforming other countries. strong economic growth has been driven by aggressive diversification and an emphasis on high-quality development, such as china's successful transformation of the automotive industry and the development of the solar industry. he believes that due to low production costs, high labor efficiency and strong infrastructure, china will remain a hot spot for foreign investment in the future.
in november 2023, china also extended its visa-free transit policy to 54 countries; china and singapore have agreed to provide reciprocal 30-day visa-free periods for their citizens in 2024; china and thailand recently announced a permanent visa waiver for each other's citizens from march 2024. according to the skift website, china has extended its visa-free policy to citizens from six countries - france, germany, italy, the netherlands, spain and malaysia - and will establish a 30-day mutual visa-free arrangement with singapore. according to michael jones, this is a "more realistic plan" that shows china's increasing flexibility in encouraging economic recovery.
belgium's "europe" website said that there are many reasons to be optimistic about china's long-term prospects. china is a world power and actively promotes global connectivity. china has a long-term vision and many levers to drive growth and create new opportunities. more importantly, china has the policy resources to address its economic difficulties.
the diversity of opportunities is inspiring
in november 2023, the international monetary fund raised its forecast for china's gdp growth in 2023 to 5.4% from the previous 5%, and raised its forecast for china's gdp growth in 2024 from 4.2% to 4.6%. the organization for economic cooperation and development also raised its forecast for china's gdp growth in 2023 to 5.2%.
a number of foreign media and foreign institutions believe that with the release of a series of positive signals such as the growth of household income, the recovery of consumption, the improvement of corporate profits and the continuous advancement of economic transformation and upgrading, china's economy is expected to continue to recover and improve in 2024.
according to an article on the website of pakistan today, china's development in 2024 will be inspiring in all aspects. china's emphasis on innovative research and development will drive progress in a number of areas, including artificial intelligence, renewable energy and biotechnology. thanks to the stabilizing economic situation and continuous technological progress, china will continue to maintain a high level of economic development in 2024.
"a series of policies introduced by the chinese government have begun to bear fruit. there will be a lot of opportunities for investors in 2024." says salman ahmed, global head of macro and strategic asset allocation at asset management firm fidelity international.
mike wardle, chief executive of british consultancy z/yen, said a lot of investment from the middle east was going to china. "the gulf states believe it is in their interest to have a strong relationship with china. china is a huge economy and they want to be part of it."
us news website bnn breaking reported that against the backdrop of global economic uncertainty, china's economy has shown surprising resilience. despite global economic challenges, china's strong economic performance continues to attract foreign investors and has the potential to expand. china has become a beacon for new opportunities.
wilen phitchaweng padi, director of the thailand-china "belt and road" research center in thailand, also said that in the context of downward pressure on the global economy, the chinese economy has shown great resilience and potential for development, and the long-term fundamentals have not changed, and china is still an important engine for global economic growth.
source: chinese government website