Pressing Ahead Through Challenges: Overseas Investors Upbeat on Chinese Economy

The current global economic recovery is being hindered. However, several sets of data recently released by the Chinese government show that with continuous breakthroughs in China’s scientific and technological innovation, the strengthening of policies to stabilize foreign investment, and the continuous tapping of consumption potential, the Chinese economy has withstood pressure and grown steadily, rising against the trend. The performance report is eye-catching, and foreign capital is optimistic about the development prospects of the Chinese economy.

First, on the morning of May 19th, the National Bureau of Statistics of China released the economic data for April. In terms of industrial production, the added value of industrial enterprises above designated size across the country increased by 6.1% year-on-year in April. Among them, the equipment manufacturing industry and high-tech manufacturing industry showed a relatively good growth trend. From January to April, the total retail sales of consumer goods increased by 4.7% year-on-year, 0.1 percentage point faster than that in the first quarter. This indicates that the consumer market is growing steadily and new drivers of consumption are developing and strengthening.

Second, data released by the China Association of Automobile Manufacturers on May 12 showed that in the first four months of this year, China’s automobile production and sales both exceeded 10 million vehicles for the first time in history, up 12.9% and 10.8% year-on-year respectively. Among them, 642,000 new energy vehicles were exported, up 52.6% year-on-year. The outstanding performance of the strategic and pillar industry of automobiles reflects the deep logic of China’s high-quality economic development.

Third, data released by the General Administration of Customs of China on May 9 showed that in the first four months of this year, the total value of China’s import and export of goods increased by 2.4% year-on-year, 1.1 percentage points faster than the first quarter. Among them, the import and export of goods in April increased by 5.6% year-on-year, and exports increased by 9.3% year-on-year. One important aspect of foreign trade going against the wind is the strong support of Made in China and Created in China.

Through three sets of data, people not only feel the resilience of the Chinese economy, but also see its broad prospects. The achievements made indicate that the fundamental long-term positive outlook of the Chinese economy remains unchanged. With the coordinated efforts of various macro policies and proactive responses from all aspects, there are many favorable conditions for the sustained economic recovery.

First, technological innovation leads to the development of new productivity. Since the beginning of this year, the development achievements of artificial intelligence represented by DeepSeek have attracted global attention and attracted the attention of many international investors. China’s technological breakthroughs in the fields of artificial intelligence and robotics show that it has made significant progress in technological innovation and further promoted industrial transformation and upgrading. This technological breakthrough has boosted the confidence of Chinese companies and consumers on the one hand, and demonstrated the innovation capabilities of Chinese companies to the world on the other. More and more foreign capital is optimistic about China.

Second, the Chinese government’s policies support stabilizing market expectations. Recently, China’s various policies have been working in concert. Domestically, efforts have been made to stabilize enterprises, the market and expectations. Externally, efforts have been made to improve the systems and mechanisms for opening up to the outside world. The implementation and effectiveness of these policies have continuously boosted market confidence. The Political Bureau meeting of the Central Committee of the Communist Party of China on April 25th pointed out that “domestic economic work should be coordinated with international economic and trade struggles”, and a package of policy measures should be deployed, with full preparations made for contingency plans. In May, the People’s Bank of China, the National Financial Supervision and Administration Commission and the China Securities Regulatory Commission jointly announced a series of incremental policies, and foreign investors, especially long-term capital, showed high enthusiasm.

Third, China’s diversified consumer demand has unlimited market potential. China has a huge domestic market. Since the beginning of this year, the Chinese government has launched special actions to boost consumption, which has promoted the development of the consumer market. China’s automobile production and sales last year exceeded 30 million units, and exports exceeded 5 million units. According to data from the Ministry of Commerce of China, since the implementation of the old-for-new policy for automobiles in 2024, the cumulative number of subsidy applications has exceeded 10 million. Since March, China has vigorously promoted the old-for-new policy for consumer goods and promoted green upgrades in automobiles, home appliances, and home decoration. The package of policies has achieved significant results. In the first quarter, China’s total retail sales of consumer goods increased by 4.6% year-on-year, showing that policies such as promoting consumption are taking effect, which will continue to enhance global investors’ confidence and optimism in the Chinese market and attract continued inflows of global funds.

Empowered by technology, supported by policies and driven by consumption, China’s economy is full of “innovative power”. This is the confidence for China’s economy to weather cycles and withstand risks, and also the basis for investing in China. In China, we see the future and confidence. This is the impression China gives to the world and also a true portrayal of China as a major Eastern country.