People’s Daily Online|Published
In today's global economy, the scarcest resource is the market. Investors increasingly regard China's market as a rare asset – even among rare assets.
What sets it apart? A single word offers a useful starting point: stability.
This stability is most visible in the quiet continuity of everyday life. Two comparisons help clarify why.
First, the contrast with other major economies. As inflation has risen significantly in major developed economies, with prices still surging and the cost of basic necessities putting growing pressure on household budgets, Chinese consumers have continued to enjoy relatively affordable essentials. Official data supports this observation: China's consumer price index rose 0.8% year on year in August, a modest increase that underscores the steady rhythm of daily life for ordinary citizens.
Second, the shift from past vulnerabilities to present resilience. There was a time when summer power outages and factory shutdowns were a major concern. Today, power rationing has become a rare sight. In August, China's total electricity consumption once again exceeded 1 trillion kilowatt-hours, with power demand reaching a record high. Yet cities continued to function smoothly, and homes remained brightly lit as usual.
This reliability stems from a modernised, multi-layered energy infrastructure. From ultra-high-voltage transmission corridors and rural distribution networks to integrated urban microgrids, China's power system seamlessly blends conventional thermal generation with wind, hydro, and solar sources. The result is a resilient grid that keeps economic and social activities running smoothly.
In a world marked by sluggish recoveries, geopolitical tensions, and volatile energy prices, such stability carries immense value. It provides a rare anchor of predictability.
Notably, the International Monetary Fund recently revised its global growth forecast downward by 0.1 percentage points for the year, while raising its projection for China's growth by 0.2 percentage points. This divergence reflects growing confidence in China's economic resilience – and helps explain why international investors are steadily increasing their capital commitments.
Where does this stability come from? The institutional strengths of China's system serve as its anchor.
Consider the example of Dadukou district in southwest China's Chongqing municipality. Once known for its vast steel industry, the district faced a key question after the relocation of Chongqing Iron & Steel Co., Ltd.: how could it build new industries to replace the old? Drawing on its existing strengths, the district made a strategic decision to develop the motorcycle industry.
The market and the government have worked in tandem. Under expedited regulatory approvals, Qianjiang Motorcycle Group moved into its new smart manufacturing facility as soon as construction was completed. Today, components supplied by Qiutian Gear are used in one out of every five motorcycles manufactured globally, while Lide Industry commands nearly half of China's domestic clutch market.
Sound industrial planning, targeted policy support and continuously improving services have helped establish a well-integrated industrial ecosystem within a 15-minute radius in the city.
Balancing dynamism with order is essential. With more than 350 companies competing in the same industry, how can the market remain vibrant without descending into disorder? The key lies in close coordination across the industrial chain and differentiated competition.
Companies carve out specialised market niches while extending and strengthening the industrial chain, fostering closer integration between manufacturing and consumption, and between industry and tourism.
From January to August this year, the industrial output of enterprises above the designated size in Dadukou district's high-end motorcycle sector grew 27% year on year. Motorcycle manufacturing, riding, and motorsports events have all become part of the district's identity, demonstrating how to give the market room to thrive while ensuring effective regulation.
"Combining an efficient market with a well-functioning government" is not only a distinctive strength of China's socialist market economy, but also a key principle for economic and social development during the 15th Five-Year Plan period (2026-2030). By continuing to improve macroeconomic governance, upgrade traditional industries, expand emerging industries, and plan ahead for future industries, China will further strengthen the certainty and distinctive appeal of its market.
The stability of China's economy is not static. It is a high-level dynamic equilibrium maintained as the economy continues to advance. Behind it lie strategic resolve and a proactive approach to shaping the country's future.
"It's not venture capital, but industrial investment; not gambling, but striving," said an official in Hefei, east China's Anhui province, who remains clear-headed despite the praise the city has received for its investment success.
High returns on industrial investment are only the visible results. The underlying strengths lie in a more fundamental approach: adapting to local conditions, making decisions based on sound analysis, and taking a long-term view.
Instead of chasing every fleeting trend in a frenzy, China stays focused on innovation within chosen sectors. Instead of faltering amid headwinds, it stays anchored to the goal of fostering new quality productive forces. Instead of fixating merely on tangible, immediate gains, it devotes more to laying the groundwork for long-term returns.
This poised mindset, balancing strategic steadiness with tactical agility, embodies the Communist Party of China's view on political achievements and development. It grows from a forward-evolving governance system, manifests in the tireless endeavours of hundreds of millions of market entities, and quietly shapes people's steady expectations of Chinese modernisation. Such confidence in the path forms the bedrock for China's sustained and sound economic growth.
People's Daily Online