by Wang Kai

BEIJING, Mar 5 (China Economic Net) - "For the foreseeable future, China will continue to be the growth engine of the world," Erik Solheim, former Under-Secretary-General of the United Nations told China Economic Net in an interview.

According to a government work report submitted Thursday to China's top legislature for deliberation, the country targets an economic growth of 4.5 percent to 5 percent this year and will strive for better in practice.

This figure surpasses the IMF's growth projections of 3.3% for the global economy and 4.2% for emerging and developing economies in 2026.

"Number is one thing, and quality is not to be overlooked. As China transitions toward high-quality development, it implies translating growth into tangible income gains, improved access to public services, and the widespread adoption of advanced technologies," Tianchen Xu, Senior Economist from the Economist Intelligence Unit told China Economic Net.

AI: magnet for global investors

In 2025, China's output of industrial robots and integrated circuits rose 28% and 10.9%, respectively, according to the government work report.

Data from OpenRouter, the world's largest API aggregation platform for large models, show that the total token consumption of the top ten models on the platform has exceeded 28.7 trillion as of the end of February. Among them, Chinese models contributed over 14.69 trillion, marking the first time in history that the monthly token call share has exceeded 50%.

According to Xu, while AI has been a major consumer of power, China has been rapidly expanding its electricity generation capacity over the past few years, including renewable energy. This expansion will ensure that China's AI development is supported by an adequate electricity supply. Moreover, it is likely that China will be able to offer AI services to global users at a lower cost. With this advantage, China could potentially secure a dominant or even majority share of the global AI market.

"Attracted by Chinese technologies, there has been a fundamental reassessment of Chinese asset over late 2024 and throughout 2025," Xu observed.

The MSCI China Index rose 31.4% in 2025, outperforming global markets. "Much of this rally was driven by innovation-led themes, particularly in technology and artificial intelligence. As China's innovation ecosystem now extends beyond AI into areas such as robotics, autonomous driving, next-generation mobility, and advanced manufacturing, the momentum would continue," according to Muhammad Faran Khan, Associate Director of KTrade Securities, Pakistan.

The government work report proposes to promote the commercial and large-scale application of AI in key industries and fields and support the construction of open-source AI communities. A new batch of smart factories and intelligent supply chains will also be built.

Consumption market: vast opportunities

In the next decade or so, China's middle-income group is likely to exceed 800 million people, representing the best application scenario for the current technological revolution and industrial transformation, according to Lou Qinjian, spokesman for the fourth session of the 14th National People's Congress at a press conference Wednesday.

In 2025, total retail sales of consumer goods in China exceeded 50 trillion yuan for the first time, contributing 52% to economic growth. Lou revealed that that the country will formulate laws on social assistance, medical security and childcare services this year, and promote the allocation of more resources to areas related to people's livelihoods so that people are able, willing and confident to spend.

Bernardo Mendia, Board Advisor at Young Entrepreneurs Association of the EU, Secretary General of the Portugal-China Chamber of Commerce and Industry (CCILC) highlighted enterprises' appetite for long-term integration into Chinese value chains.

"The engagement of Portuguese businesses with the Chinese market is undergoing a profound maturation. We are moving past the era of simple transactional trade into a phase defined by strategic industrial presence. While the readiness for partnership remains high, it has evolved from a general curiosity into a targeted search for technological and capital synergy. Portuguese companies increasingly recognize that to succeed in China, they must offer something truly worth buying—value that is competitive not just on price, but on specialized quality and innovation," he said.

"Beyond large corporations, the opportunities for small and medium-sized enterprises (SMEs) are expanding through digital channels. China is the world's largest e-commerce market, which allows international SMEs to enter the market with lower risk and without the need for physical presence. We see a growing niche for gourmet food products, specialized lifestyle brands, and management consulting services," Mendia said.

China, US: towards broader space for cooperation

On the Wednesday press conference, Lou said that China stands ready to strengthen communication with the United States at all levels and through various channels to create broader space for cooperation between the world's two largest economies. At the same time, China has its own principles and red lines, and will firmly safeguard its sovereignty, security and development interests.

Chinese customs data show that China-U.S. trade recorded 4.01 trillion yuan in 2025, accounting for 8.8 percent of China's total foreign trade. High value-added and technology-intensive products are now the main engines of growth in China's exports to the U.S., with electronic equipment, machinery and electrical products, and photovoltaic modules leading the expansion.

According to Xu, as the U.S. looks to strengthen its manufacturing sector, economic cooperation with China, the world's largest producer, is necessary.

Last month, the 20th anniversary event of the U.S.-China Commercial Matchmaking Program was held in Beijing.

Wang Wenshuai, a spokesperson for the China Council for the Promotion of International Trade (CCPIT) said earlier this month that the Council will continue to strengthen industrial and supply chain cooperation with the U.S. by making full use of platforms such as the China International Supply Chain Expo (CISCE) and the U.S.-China Commercial Matchmaking Program (CMP). He revealed the upcoming CISCE will feature a stronger presence from leading U.S. companies, along with prominent figures from business, government, and academia. In the expo's AI section, Chinese and American AI firms will share the same stage. Wang also underlined promoting cooperation between the two countries' business communities in emerging sectors including the digital economy, biopharmaceuticals, and new energy vehicles.

"As of now, CCPIT has approved 119 activities for Chinese enterprises to participate in U.S.-based exhibitions in 2026, of which 30 had been carried out by February," Wang said.

Solheim highlighted the necessity of bilateral cooperation in renewable energy. "China, with an enormously efficient productive ecosystem, is the indispensable nation for the green transition, producing over 60% of green technologies—up to 90% in solar alone. Its new energy products are a global public good, aligning with the collective goal of sustainability. Any nation, including the United States, cannot achieve a green future without partnership with China," he said.