Challenges abound, but can't dim 2024

Despite grappling with a complex external environment, inadequate domestic demand and risks linked to local government debt and the property sector, China still has plenty of room and sufficient policy tools to reinforce the growth of the world's second-largest economy, Zou said.

The tone-setting annual Central Economic Work Conference in December called for efforts to pursue progress while ensuring stability, consolidate stability through progress and "establish the new before abolishing the old".

It urged the introduction of more policies that will help stabilize expectations, growth and employment, as well as active endeavors to promote the transition of growth models, structural adjustment, and quality and efficiency improvement, so as to consolidate the foundation of stable economic development with a positive outlook.

Zou said the meaning of "establishing the new before abolishing the old" refers to managing the relationship between the growth of new and traditional economic drivers during the process of economic structural transformation.

"It emphasizes the need to first establish and strengthen new economic drivers before gradually phasing out or reforming the outdated ones, rather than abolishing the old drivers before the new ones are firmly in place."

She further said emerging sectors like new energy vehicles and high-tech industries will serve as new growth drivers and sturdy engines supporting China's future economic development.

"I believe China's automotive sector is poised to experience substantial growth, particularly given its leading global position in the development of NEVs. And the country's high-tech industry is also undergoing rapid growth."

China saw its vehicle production and sales both exceed 30 million units in 2023, with the figures expected to grow by around 3 percent to 31 million this year, according to the China Association of Automobile Manufacturers.

China surpassed Japan last year as the world's largest auto exporter, with 4.91 million vehicles shipped overseas last year, up 57.9 percent year-on-year. The association estimates exports this year will reach 5.5 million units.

While facing a more complicated and grimmer external environment and a gloomy global outlook, China's booming new sectors will serve as new growth drivers supporting export growth and steady economic recovery, said Zhang Xiaoqiang, executive vice-chairman of the China Center for International Economic Exchanges.

Looking ahead, he said China has the conditions and capabilities to achieve around 5 percent GDP growth this year. So, more efforts should be made to spur both traditional and new types of consumption, he said.

More efforts should also be made to increase people's incomes and create a better consumption environment, speed up the building of a unified national market and accelerate the construction of a modern industrial system, which will help form a virtuous cycle between consumption and investment, Zhang said.

ouyangshijia@chinadaily.com.cn