by Yi Xin
The year 2025 is around the corner, but the economic outlook for the world is not as exciting as the coming of the New Year. International organizations like the International Monetary Fund (IMF) warn that the global economy faces risks of low growth, high debt, weak investment, and rising economic fragmentation. And the uncertainty linked to the incoming U.S. administration only further complicates the global economic landscape.
At this critical juncture, China, the world's second-largest economy, is working actively to instill confidence and stability in global development. In early December, China hosted the "1+10" Dialogue in Beijing, bringing together the heads of 10 prominent international economic organizations. Focusing on the themes of global development and common prosperity, the dialogue delivered a powerful message in favor of multilateralism and economic growth. It also reaffirmed the shared commitment of China and the participating organizations to promoting free trade and advancing economic globalization.
CHAMPIONING A MULTILATERAL RESPONSE
Indeed, the path forward is full of challenges and calls for a sense of urgency.
The IMF predicts that global growth could decline to 3.1 percent by 2029, much lower than the pre-pandemic average of 3.8 percent between 2000 and 2019. The Global South, which carries increasing economic weight, also has a demanding task at hand. According to the World Bank, over the next decade, 1.2 billion young people in emerging markets and developing countries will reach working age. However, only 400 million jobs are expected to be created during the same period.
As World Bank Group President Ajay Banga once remarked, "forecasts are not destiny," and the world simply needs to work hard enough to change them. The question, then, is what approach should the world take to solve these pressing economic challenges. China's answer is unequivocal: global challenges must be addressed through multilateralism and global solidarity.
Over the years, China has consistently contributed to multilateral efforts aimed at addressing global development challenges. It has put forth the Global Development Initiative to expedite the realization of Sustainable Development Goals, and increased its contribution to the International Development Association replenishment to provide critical support to the world's poorest nations.
Chinese President Xi Jinping captured this vision during his meeting with the 10 leaders, stating, "Humanity is a closely entwined community with a shared future. Countries are not riding separately in some 190 small boats, but are rather all in a giant ship on which their shared destiny hinges."
The "1+10" Dialogue embodies this spirit: It is an enlargement of the annual "1+6" Roundtable mechanism and brings in organizations that represent the voice of the Global South, such as the New Development Bank, the Asian Infrastructure Investment Bank, and UN Trade and Development.
SHARING DEVELOPMENT BENEFITS THROUGH OPENNESS
Another highlight of the Dialogue is China's unwavering commitment to opening up. While some countries choose protectionism, erect barriers and pursue decoupling, China remains firm in opening its door wider. China understands that in a world where countries are interconnected like never before, development can only be achieved through greater, not less, openness. More openness means more trade, more jobs and more growth.
More importantly, China is not just paying lip service, but actively putting its commitment into practice. For seven consecutive years, China has hosted the International Import Expo, inviting businesses worldwide to tap the potential of its vast consumer market. Having fully opened its manufacturing sector to foreign investors, China is further opening up its telecommunications, education, medical service and other sectors.
It is also working to transform Hainan Island into a Free Trade Port. Through international economic platforms, China has shared its development knowledge with members of the Global South, proving itself a reliable and trustworthy development partner.
BOOSTING CONFIDENCE IN GROWTH PROSPECTS
As a major engine of the global economy, China contributes over 30 percent to global growth, making its economic prospects crucial for global confidence. While it is true that China is facing some domestic economic challenges, most of these are temporary hurdles in the ongoing transition to high-quality development.
The Chinese government has not shied away from these issues but has actively utilized its comprehensive policy toolkit to bolster growth. Since September, a host of pro-growth policies have been rolled out to tackle prominent challenges in the property market and local government debt. Thanks to these measures, key economic indicators showed significant improvement in the fourth quarter. During the "1+10" Dialogue, leaders from international economic organizations expressed confidence in the transition and future of China's economy.
It is worth noting that, shortly after the Dialogue, China convened its Central Economic Work Conference and announced plans to adopt a "more proactive fiscal policy" and a "moderately loose monetary policy" in the coming year. This again sends a strong signal that China has the confidence and capability to maintain stable economic growth, despite the challenges ahead.
What 2025 will bring remains uncertain, but one thing is clear: China will continue to serve as an engine of growth and anchor of stability for the global economy, and continue to contribute to the world's prosperity through its own development. President Xi's words capture the essence of this: China can only do well when the world is doing well. When China does well, the world will get even better.
Editor's note: The author is a Beijing-based observer of international affairs.
The views expressed in this article are those of the author and do not necessarily reflect the positions of Xinhua News Agency.■