The World Bank published its updated Global Economic Prospects report in June, revising downward projections for most economies as it sees global growth on a precarious footing amid stubbornly high inflation, record debt levels and the possibility of more widespread spillovers from renewed financial stress in advanced economies.

In such a world fraught with financial risks and uncertainties, the Chinese economy is an exception. Despite broad-based downgrades, the World Bank revised up its forecast for China's economic growth in 2023 by 1.3 percent from its January report to 5.6 percent. And Borge Brende, president of the World Economic Forum, predicted that China is likely to contribute 36 percent to global growth this year.

Just as Joe Ngai, managing director of McKinsey Greater China, put it, "If you are looking for growth, the answer is very simple. The next China is China."

Strong consumption

From January to May, renewed consumer demand and market confidence spurred strong consumption in China.

Retail sales, an important barometer of consumer demand, registered a noteworthy upswing in the past five months, with a 9.3 percent year on year growth of retail sales of consumer goods and in particular a 13.8 percent expansion of online retail sales.

Tourism, an industry heavily hit by the pandemic, also saw strong recovery in recent months. For instance, during the three-day Dragon Boat Festival, over 100 million trips were made domestically, a 32.3 percent year on year increase and 12.8 percent above the pre-pandemic level in 2019, generating RMB 37.31 billion of tourism-related revenues.

Another highlight of domestic consumption is the automobile industry. Passenger vehicle sales in China totaled 2.05 million in May, a surge of 26.4 percent over the same month last year. Notably, sales of NEVs surged by 60.2 percent and accounted for 30.1 percent of total new car sales.

Rebounding investment

Rising demand also bolstered investment. Over the past five months, domestic investment in fixed assets, infrastructure and manufacturing, a bellwether for economic expansion, increased by 4 percent, 7.5 percent and 6 percent respectively compared with the same period last year.

At the same time, foreign direct investment (FDI) continues to flock into China in the hundreds of billions, attracted by the strength of the Chinese economy and the open, pro-investment policies rolled out by the Chinese government.

According to the latest data released by China's Ministry of Commerce, from January to May, actual use of FDI from France, the U.K., Canada and Japan went up by 429.7 percent, 179.2 percent, 170.1 percent and 63.3 percent year on year respectively. A total of 18,532 new foreign-invested enterprises were set up, a significant 38.3 percent year-on-year expansion.

Facts cannot be refuted. Despite constant calls for "de-risking" by some politicians, decisions made by the wider business community is a vote of confidence in the vast opportunities presented by the world's second largest economy.

Better-footed foreign trade

In addition to consumption and investment, foreign trade, a traditional driver of China's economic growth, has also become more resilient and well-structured.

Thanks to China's persistent efforts to promote trade facilitation and liberalization, China's trading partners have become more diversified. China is now the main trading partner of over 140 countries and regions. From January to May, China's trade with ASEAN countries, RCEP members and Belt and Road partners rose year-on-year by 9.9 percent, 4.5 percent and 13.2 percent respectively.

High-tech products are now the bulk of China's exports. In the first five months, GAC data shows the export of mechanical and electrical products grew by 9.5 percent year-on-year to reach RMB 5.57 trillion, accounting for 57.9 percent of China's total exports. In the first quarter of 2023, China officially surpassed Japan to become the world's largest car exporter.

Green energy is another area where China is thriving. In the past years, China's exports of solar panels have tripled to nearly $5 billion per month. In May this year alone, GAC data shows that China exported 478 million units of solar panels, a surge of 39.4 percent compared with the same period in 2022.

Conclusion: An even brighter prospect ahead

Data speaks for itself. It is pointing to an even brighter prospect for the world's second largest economy and the largest contributor to global economic growth.

If you are looking for growth, the next China is China. If you are looking for opportunities, the next China is China. Do come and share the vast opportunities here. Confidence in China always pays off well!