Resilience fuels confidence in China's economy

Confidence in China's economic prospects remains strong among officials, economists and global business leaders, as the world's second-largest economy continues to demonstrate resilience, vitality and long-term growth potential despite external headwinds.

They said China remains well positioned to achieve its annual growth target of 4.5 to 5 percent, and make further progress in innovation-led growth supported by a solid start to the year, effective macro policy support and the rapid expansion of new growth drivers.

With buoyant growth prospects, a vast domestic market and expanding innovation capacity, China will continue to be a key growth engine for the rest of the world, they added.

Jiang Ying, chair of Deloitte China, said she is confident in the long-term prospects of the Chinese economy, citing its consistent performance in recent years and a strong first quarter as signs of underlying resilience.

"I'm very confident about the long-term prosperity of the Chinese economy," Jiang said in an exclusive interview with China Daily on the sidelines of the 2026 Summer Davos forum. "The Chinese market provides certainty to the world."

At a time when global businesses are facing rising uncertainties, China's stable expectations and predictable growth have become increasingly valuable, she said.

"Predictability and stability are probably the best dividend and the greatest advantage that the Chinese market now offers to the global economy," Jiang said. "That is what everyone is looking for amid rising uncertainties."

The forum, also known as the World Economic Forum's 17th Annual Meeting of the New Champions, was held under the theme "Innovating at Scale" in Dalian, Liaoning province, from June 23-25.

"The theme of this forum is very fitting for China — innovating at scale," said Ben Dawson, president of Cisco Asia-Pacific, Japan and Greater China.

Dawson told China Daily that China's long-term appeal lies not only in the scale of its market, but also in its ability to translate technological ambition into large-scale industrial applications.

With a presence in China spanning 32 years, Cisco has witnessed the country's digital transformation and the growing momentum of its AI development, supported by a strong industrial base, sustained investment in manufacturing and the faster adoption of advanced technologies across traditional sectors, Dawson said.

Such confidence in China's growing innovation strength is echoed by other multinational companies with long-term operations in the country.

Yin Zheng, executive vice-president of China and East Asia operations at French industrial conglomerate Schneider Electric, said China has become an important engine of global economic growth and a key source of technological and industrial innovation.

"China's solid energy foundation and strong industrial system have reinforced each other, creating powerful momentum for innovation to be developed and applied at scale," Yin said on the sidelines of the 2026 Summer Davos forum.

"China is now one of Schneider Electric's four major global research and development bases, and an important source of innovation and growth for us," Yin said. "Leveraging China's innovation strengths, Schneider Electric will continue to increase its investment in research and development in the country."

Echoing that view, Ruan Fang, managing director and senior partner at Boston Consulting Group, told China Daily that China's strongest growth opportunities are emerging in advanced manufacturing and artificial intelligence.

China, the world's second-largest economy, has grown into a major hub of innovation, driven by its vast domestic market and a significantly faster pace of iteration, she said.

The latest official data also underscored the strong momentum of China's new growth drivers and innovation-related sectors.

In the first five months, industrial enterprises with annual main business revenue of at least 20 million yuan ($2.93 million) reported total profits of 3.14 trillion yuan, up 18.8 percent year-on-year, with the growth rate accelerating by 0.6 percentage point from the January-April period, data released by the National Bureau of Statistics showed.