2024 economic highlights: China's path to stability
By Hasan Muhammad
Editor's Note: The writer is a freelance columnist on international affairs based in Karachi, Pakistan. The article reflects the author's opinions and not necessarily the views of China Economic Net.
China's economy continues to defy predictions and evolve with remarkable momentum, crafting a narrative of transformation that the rest of the world cannot ignore. In 2023, the added value of the tertiary industry has accounted for 56.3% of GDP, an increase of more than 2 percentage points from 2018, cementing itself as the primary engine of economic growth.
China's economic story is taking a nuanced turn as regional coordination and innovation redefine its trajectory. The central and western regions, once overshadowed by coastal prosperity, are now thriving under accelerated fixed asset investment, building a more balanced economic framework that bolsters national resilience. This is no accident; it's a calculated effort to redistribute growth.
But what truly sets China apart is its commitment to innovation as the driving force behind its high-quality development agenda. Breakthroughs in technology are not emerging by chance but are the result of a focused increase in research and development (R&D) investment. Alongside a fortified intellectual property protection system, this strategy has injected fresh vitality into China's economic progress. As of mid-2024, 4,915 A-share companies had collectively funneled 712.5 billion yuan (over $97.6 billion) into R&D - a 3 percent growth over the previous year. Sectors like computers, defense, electronics, machinery, and biotech now dedicate more than 5 percent of their operating income to R&D.
Besides, in 2024, the country climbed to 11th place in the World Intellectual Property Organization's Global Innovation Index - a rise of one position from the previous year. While this numerical uptick may seem modest, the substance beneath it is anything but. China now claims an astonishing 26 of the world's top 100 science and technology clusters, more than any other nation.
This achievement reflects its unrivaled commitment to fostering a robust ecosystem where innovation thrives. The momentum isn't fleeting; it's anchored in a long-term vision. According to China's National Intellectual Property Administration's 2024 Report on the Construction and Development of an Intellectual Property Powerhouse, the nation is steering toward a future where intellectual property is a core pillar of its global competitiveness. By 2035, China aims to establish a comprehensive intellectual property system that ranks among the world's elite, ensuring the country remains a vanguard of innovation.
In the energy sector, China is accelerating the transition to cleaner resources, championing non-fossil energy while refining the efficiency of fossil fuels. As a result, it stands among the fastest countries in reducing energy intensity—a critical metric for sustainable progress. Transportation, too, reflects this momentum. Production of new energy vehicles surged by an impressive 51.1 percent last year, accompanied by a 10.9 percent increase in solar cell output.
Key reforms have further solidified China's low-carbon transformation. A voluntary greenhouse gas emissions trading market was introduced, complemented by a comprehensive carbon footprint management plan spearheaded by 15 national agencies. The national carbon trading market - now the world's largest - covers 5.1 billion tons of carbon dioxide emissions annually, having already completed two compliance cycles.
These achievements underscore China's determined march toward a sustainable future. Despite escalating global pressures - intensified geopolitical conflicts, surging protectionism - and domestic challenges such as lagging consumption and job market strain, China has demonstrated remarkable resilience.
（Editor:Liao Yifan）
