China's Government Work Report has set a GDP growth target of around 5 percent for 2024. Considering the international and domestic economic conditions, with a potential annual growth rate of 8 percent, it is entirely possible for China to achieve an economic growth rate of above 5 percent.

China has enough room for elevation of technological innovation, industrial upgrade and productivity level. The country has a high savings rate, abundant investment resources, and a commitment to develop its economy.

China, as a major developing economy, is still in a process of industrial upgrade and still faces a big gap with developed countries, but this creates a latecomer's advantage. During this catch-up stage, other economies such as Japan, South Korea and Germany achieved a growth rate of 8 percent or above. If they can achieve that, China also has the potential to achieve it.

Compared with those countries, China also has another advantage in the new economy, represented by artificial intelligence and digital economy. China is placed at the same start line as those developed countries, but it has demonstrated a significant advantage in tech innovation involving new economy.

There are three reasons. First, China has abundant human capital. With a population of 1.4 billion, China possesses a vast pool of talent who possess entrepreneurial spirit and technical skills.

Second, China has already become the world's largest economy based on purchasing power parity calculations. That means any technological innovation or new product development can swiftly enter the domestic market and benefit from economies of scale. Even when competing with developed countries, China can surpass them in economies of scale thanks to its enormous domestic market size.

Thirdly, China has the best industrial supporting capability of almost any economy globally.

'China peaked' rebuttal

Some foreign scholars have made claims over "peak China" claim or asserted that the Chinese economy is already on a downward trend toward "Japanification." However, there are key differences between China and Japan back then. Japan experienced relative stagnation in technological innovation, industrial upgrading, and productivity improvement, with no emergence of new industries after the 1980s and 1990s.

In contrast, China has the advantage of being a latecomer. It can utilize the gap with developed countries to introduce, digest, absorb, and then innovate new technologies, and make them a source of industrial upgrade. Across the new economy, China is starting from the same place as developed countries, with a large pool of talent, massive market, and comprehensive industrial infrastructure. So the situation that occurred in Japan is unlikely to occur in China.

As long as we continue our technological innovation and industrial upgrading, and improve productivity levels, per capita GDP will grow faster than that of the US.

China's per capita GDP is already over $12,500, which is very close to the threshold of $13,000 for becoming a high-income nation. As long as we make good use of the favorable conditions for technological innovation and industrial upgrading, I believe we can become a high-income country - if not in 2025, then 2026.

With a growth rate of between 5 percent and 6 percent and a potential annual growth rate of 8 percent through 2035, and 3 percent and 4 percent from 2036 to 2050 with a potential growth rate of 6 percent, China's per capita GDP will hit half that of the US by 2049.Considering China's population is four times that of the US, China's economic size will then be twice that of the US. China will become the world's largest economy and contribute the most to the world economic growth every year.

Population turning point

China's population has reached a turning point and is currently facing the challenges of an aging population. In the 1990s, Japan also experienced population aging issue and an economic growth slowdown. When it comes to economic growth, labor force is important, but what matters more is effective labor, which is the product of both the quantity and quality of labor force.

China has anticipated challenges around an aging population, and has significantly increased its investment in education. Consequently, the education years of the younger workforce have significantly improved. So from the perspective of effective labor, we used to talk about demographic dividend, but now it's the dividend of quality.

Among the 53 countries in the world that are currently facing an aging population, there are 27 countries whose per capita GDP, upon entering the aging population phase, has already reached half or more of that of the US, meaning they are already developed countries. The remaining 26 countries, upon entering the aging population phase, still have a per capita GDP below 50 percent of that of the US, indicating they are "getting old before getting rich," and are in a catch-up phase.

For the first group of countries, in the decade before entering the aging population phase, their economic growth rate only experienced a slight decline, but their per capita GDP remained largely unchanged. This is because their education levels stay basically the same before and after entering the aging population phase, as they already had high levels of education.

Therefore, the increase in human capital was limited. For the second group of countries, their economies still improve after entering aging population phase. This is because their labor force's education level is also increasing, leading to an increase in effective labor, which is beneficial for technological innovation and industrial upgrade.

I believe under the guidance of the new development philosophy, China will put innovation first, its productivity level will continue to improve, and it will not grow old before it gets rich.

The article is based on an interview with Justin Lin Yifu, dean of the Institute of New Structural Economics at Peking University and a member of the Standing Committee of the Chinese People's Political Consultative Conference (CPPCC) National Committee, the top political advisory body.

Deputies from East China's Jiangsu Province who interacted with Chinese President Xi Jinping during a deliberation at the second session of the 14th National People's Congress, told the Global Times on Thursday that they had been deeply inspired and vowed to accelerate the development of new quality productive forces.

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, on Tuesday participated in a deliberation with his fellow deputies from the delegation of Jiangsu Province at the second session of the 14th National People's Congress, China's national legislature, the Xinhua News Agency reported.  

During the deliberation, Xi stressed the importance of developing new quality productive forces according to local conditions.

Xi called for focusing on high-quality development as the top priority, urging efforts to step up innovation, foster emerging industries, adopt forward-thinking plans for developing future-oriented industries and improve the modernized industrial system, according to Xinhua.

Scientific and technological innovation has become an important driving force for China's development and the term "new quality productive forces" has become a buzzword at the ongoing two sessions. 

And the guidelines presented by Xi have served to enlighten NPC deputies from Jiangsu Province, with many saying that they are inspired by Xi's emphasis on developing new quality productive forces, which is set to inject new growth momentum to the Chinese economy.

Shan Zenghai, an NPC deputy and chief engineer of Chinese construction equipment giant Xuzhou Construction Machinery Group (XCMG), told the Global Times on Thursday that he is heartened by Xi's direction on guiding Jiangsu to develop new quality productive forces and become a base, and forge industrial clusters of new and emerging industries.

"The encouragement from top leadership greatly boosted our confidence in sticking to innovation-driven growth, bolstering the real economy and promoting high quality development," Shan said.

Chen Wei, an NPC deputy and the President of Jiangnan University, told the Global Times on Thursday that Xi's direction on making science and technological innovation a pillar in nurturing new quality productive forces has mapped out a blueprint for colleges to serve the country's economic and social development.

Promoting the in-depth integration of innovative factors, industrial chains, capital and talent represents key tasks for colleges, including encouraging scientists and researchers to walk out of laboratories and to the assembly lines, Chen said.

Zhou Bin, another NPC deputy and Party chief of Yancheng city, told the Global Times on Thursday that Xi's guidance carved out new space for development and the city has focused its development on new industrialization since the new year with the aim to construct modern industrial system.

The city will focus on nurturing "little giants," or industrial enterprises that have unique niche in the market, high-tech enterprises and listed firms.

The concept of new quality productive forces refers to a new form of productive forces derived from continuous sci-tech breakthroughs and innovation that drive strategic emerging industries and future industries in a more intelligent information era.

The development of new quality productive forces is currently accelerating across China. 

East China's Jiangsu Province is a manufacturing and exports powerhouse. It is also home to a vast number of private companies and a key destination of foreign-invested companies in China. The province has set a growth target of over 5 percent for 2024, after recording a growth of 5.8 percent in 2023.

Sales of iPhones in the Chinese market posted a double-digit year-on-year decline in the first six weeks of 2024. Analysts said the US tech company is struggling in the competition with rising Chinese rivals.

According to market research organization Counterpoint Research, iPhone's sales in the Chinese market declined by 24 percent in the first six weeks of 2024, and it ranked No.4 behind three Chinese brands - Vivo, Huawei and Honor.

Counterpoint said that the fall was due to stiff competition in the high-end market from a resurgent Huawei, while Apple was squeezed in the middle market by brands such as Vivo, OPPO and Xiaomi.

In Apple's official store on Chinese e-commerce platform Tmall, the price of the latest iPhone 15 with 128G storage reached 4,999 yuan ($694.37), much cheaper than the price of 5,999 yuan at the official website of Apple, a move seen as to attract more Chinese consumers on the online channel.

Apple had a roughly 13 percent year-on-year decline in sales in the greater China region in the first quarter of 2024 fiscal year that ended December 30, 2023. Quarterly earnings rose 2 percent year-on-year to $119.6 billion, according to the company's results released on February 1.

Represented by the sudden launch of Huawei's Mate 60 Pro series, various Chinese Android-oriented smartphones showed largely-upgraded performance and production capacity, Liu Dingding, a veteran industry observer, told the Global Times on Tuesday.

Liu noted that the price advantage and approximate quality of domestic brands compared with iPhones affect consumers' decisions.

Counterpoint said that although the iPhone 15 is a great device, it has no significant upgrades from the previous version, so consumers feel fine holding on to older-generation iPhones for now.

In January, a total of 31.78 million cell phones were shipped in China, up 68.1 percent year-on-year, and 82.6 percent were domestic brands, according to the China Academy of Information and Communications Technology, indicating strong growth momentum of Chinese smartphone manufacturers.

More than half of the world's manned deep diving missions have been completed by China's three deep-sea manned submersibles, Jiaolong, Shenhai Yongshi (Deep Sea Warrior) and Fendouzhe (Striver) during the past three years, Ye Cong, member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and chief designer of Fendouzhe, said on Monday.

The remarks were made as China's top political advisory body, the CPPCC National Committee, opened its annual session on Monday in Beijing. On the occasion, CPPCC representatives and NPC deputies from all walks of life gather at the annual two sessions, discussing important matters pertaining to the nation's development and needs of the people.

The deep-sea manned submersibles are a significant example of the nation's achievements in homegrown tech innovation as well as China's active participation in helping the world to better understand, protect and explore the deep sea.

Over the past four years, Fendouzhe has completed a total of 230 dives, 25 of which were deeper than 10,000 meters, allowing 32 people to reach the seabed at 10,000 meters below the surface to carry out operations, Ye said.

Fendouzhe is China's first manned submersible that can reach the deepest part of the world's oceans for scientific research and exploration. In 2020, Fendouzhe made history on November 10, 2020, when it successfully landed on the Mariana Trench in the western Pacific Ocean, the deepest point of the Earth, reaching a depth of 10,909 meters and setting a new record for the Chinese manned deep-diving mission, according to Ye.

The submersible also achieved the first live video interaction from a 10,000-meter seabed location.

From 2022 to 2023, Fendouzhe completed its first scientific research mission around Oceania. The dive locations included the Kermadec Trench area of the southwest Pacific Ocean and the Diamantina Trench in the southeastern Indian Ocean, with a total of 63 dives, setting record for a single-voyage dive, according to Ye.

Many foreign scientists have also participated in the deep-sea exploration using Chinese submersibles, Ye said, an example of China's deep-sea exploration has been open and inclusive for international cooperation.

Just now, Fendouzhe is doing deep-sea exploration at Sunda Trench or the Java Trench in the Indian Ocean, as part of the cooperation between China and Indonesia, Ye said.

During the past three years, more than half of the world's manned deep diving missions have been completed by China's three deep-sea manned submersibles, Jiaolong, Shenhai Yongshi and Fendouzhe. The three submersibles have made more than 1,100 dives so far, Ye said.

In an interview with the Global Times on Monday, Ye said that the achievements on deep-sea scientific research are inseparable from the country's advanced shipbuilding industry, which leads the world.

"Only with the solid foundation can we better support the development of our deep-sea scientific exploration and the improvement of our tools," Ye said.

When asked by media about deep-sea explorations, Ye emphasized the importance of taking into account of their potential environmental impact on maritime ecosystem. "We are equally concerned about the environmental ramifications and believe that comprehensive assessments and analyses are imperative," Ye said.

Regarding explorations in the future, he said: "We will strive to extend our works in more deep-sea areas, including the polar areas. Also, we will carry out systematic work and build a detection operation and development system from space to the sea surface, and from underwater to the seabed, in order to improve our perception of the entire ocean system," Ye said.

"As marine science and technology workers, we must continue to sum up experiences from the extreme deep dives of Fendouzhe, climb to the peak of deep-sea science and technology, and continue to make new contributions to the better understanding, protection, and development of the ocean system for the mankind," Ye said.

"There is no problem with the power supply line in the factory area, and the distribution cabinet is operating normally. If there are any difficulties or problems with electricity in the future, please feel free to contact us at any time."On February 20th, members of the Rainbow Communist Party Member Service Team of State Grid Pingyuan County Power Supply Company visited Ruiming Clothing Factory in Pingyuan County to provide on-site services, helping the enterprise inspect electrical equipment and solve problems, to ensure reliable electricity use, and assist the enterprise in resuming work and production after the Chinese New Year holidays.
After the Spring Festival, various enterprises in Pingyuan County, Dezhou City, resumed work and production. In order to ensure the reliability of electricity production for enterprises, 12 Rainbow Party Member Service Teams of State Grid Pingyuan County Power Supply Company went deep into the enterprises under their jurisdictions to get the production status and electricity demand of the companies and factories after resuming work. They conducted a comprehensive "physical examination" of the enterprise's electricity equipment, conducted detailed inspections of distribution equipment, switch cabinets, distribution rooms, etc. Service teams provided a detailed interpretation of industrial electricity policies, guided enterprises to promptly eliminate safety hazards and took corresponding preventive measures, which will boost production.
While organizing a Rainbow Communist Party member service team to conduct on-site inspections of enterprise equipment, the State Grid Pingyuan County Power Supply Company has also launched a typical industry "power supply service package" tailored to different production situations and electricity needs of enterprises. The "one enterprise, one policy" power supply plan is tailored to accurately implement policies. Those policies guide enterprises to use electricity reasonably and scientifically, reduce electricity expenses, comprehensively do a good job in power supply guarantee services, help enterprises reduce energy costs, and help them to improve efficiency.

"Power supply workers regularly come to the factory to help check the safety of electricity use and timely remind us of and help us eliminate hidden dangers. High quality power supply services have given us more confidence in making a good start in the first quarter." Wang Xiuming, the director of Ruiming Clothing Factory in Pingyuan County, said confidently.

The State Grid Pingyuan County Power Supply Company will continue to play the role of the leader in electricity, adhere to the work concept of "proactive docking and advanced service", continuously optimize the electricity business environment, continuously upgrade service measures through regular consultation and precise service, and use "full grid electricity" to help enterprises accelerate production.

Chinese firms are urging South Korea to lower the barriers to entry for foreign investment, enhance the stability and transparency of business policies and regulations, and strengthen innovation cooperation with China in the fields of the digital economy, clean energy, new-energy vehicles (NEVs) and others, a survey showed.

The 2023 South Korea Business Environment Report was produced by the China Council for the Promotion of International Trade (CCPIT) based on in-depth investigations of Chinese firms operating in South Korea, Yang Fan, a spokesperson for the CCPIT, said on Wednesday during a regular press conference.

"Chinese enterprises attach great importance to investment and operation in South Korea, given the close economic ties between China and South Korea and the deep integration of industry and supply chains," said Yang.

Chinese firms operating in South Korea had an overall good performance in 2023, with 56.3 percent of those surveyed reporting profitability, 48.2 percent reporting revenue growth and 42.2 percent reporting profit growth, according to the report.

The report also included five expectations of Chinese firms regarding the business climate: lower market access barriers for foreign enterprises; improved stability and transparency of enterprise-related policies and regulations; enhanced support for foreign enterprises in South Korea and guarantees of equal access to supportive policies; continuous optimization of the employment environment for foreign firms, and closer innovative cooperation with China in such fields as the digital economy, clean energy and NEVs.

Improving the business environment for foreign firms can boost investment and trade cooperation, analysts said.

China and South Korea maintain strong economic ties. Bilateral trade stood at $310.74 billion in 2023. Although the amount dropped by 13.5 percent year-on-year, China remained South Korea's largest trade partner, according to the General Administration of Customs of China.

The two economies are closely connected, as are the two industry and supply chains, Chinese Foreign Minister Wang Yi said on February 6 during a phone call with the South Korean Minister of Foreign Affairs Cho Tae-yul at the latter's request, according to a readout published on the website of the Ministry of Foreign Affairs.

Wang called on both sides to jointly keep the industry and supply chains stable and smooth and jointly steer clear of politicizing and instrumentalizing economic issues and overstretching the concept of security.

The ongoing 14th National Winter Games, which are being held in North China's Inner Mongolia Autonomous Region, have given a big boost to the development of the local winter sports sector, as shown by remarkable tourism and spending levels during the Spring Festival holidays. The event runs from February 17 to Tuesday.

Experts noted that large-scale sports events can boost local cultural and tourism development, as well as stimulating consumption. 

Yang Xuedong, director of the Economic Department of the State General Administration of Sport (GAS), said that four game areas of the 14th National Winter Games - Hulun Buir, Hohhot, Ulanqab and Chifeng - had 13.15 million visitors during the Spring Festival holidays, and spending in the cultural, sports and tourism sectors reached 10.12 billion yuan ($1.42 billion), the Xinhua News Agency reported. 

During the holidays, Hulun Buir, the main game area, had 1.67 million visitors, which spurred 1.14 billion yuan in related consumption and boosted the local ice-snow economy's development, said Yang. 

Behind the bustling travel and consumption lie detailed plans and arrangements by the government and the GAS. 

In December, the GAS and relevant departments launched special tourism campaigns targeting certain winter sports, as well as promoting ice-snow consumption activities across the country.

As the 14th National Winter Games partly coincided with the Spring Festival holidays and well-prepared sports-related tourism products, the consumption potential was fully released, Jiang Yiyi, deputy head of the School of Leisure Sports and Tourism at Beijing Sport University, told the Global Times on Sunday, noting that sports events can generate large-scale economic effects.

Major sports events held in 2023 included the 31st Summer World University Games in Chengdu, Southwest China's Sichuan Province, the 19th Asian Games in Hangzhou, East China's Zhejiang Province, and China's first Student (Youth) Game in South China's Guangxi Zhuang Autonomous Region. Altogether, these events attracted about 220 million tourists with more than 100 billion yuan in spending, according to the GAS.

Yang noted that the GAS will support efforts to foster the sports event economy in 2024, and further play an active role in lifting consumption and the economics of event venues. 

China's three major A-share indexes continued to close higher across the board on Friday trading, with the benchmark Shanghai Composite Index regaining 3,000 points and recovering all losses since the beginning of 2024. Experts said they were mainly boosted by effective support policies to stabilize the stock market and continuous improvement of economic fundamentals.

Based on the strong drive of the domestic consumption market, stable foreign trade as well as increasing foreign investment, analysts noted that the stock market will remain stable and the country is expected to see economic growth of above 5 percent in the first quarter of 2024, laying a solid foundation for the economic rebound throughout the year.

The Shanghai Composite Index rose for the eighth straight day on Friday, up 0.55 percent to close at 3,004.88 points. The Shenzhen Component Index increased by 0.28 percent and the ChiNext Index, which tracks China's Nasdaq-style board of growth enterprises, rose 0.02 percent.

Over 4,300 individual stocks closed higher, and 141 stocks rose to their daily limit. Trading at Shanghai and Shenzhen stock markets reached 922 billion yuan ($128.1 billion). Sora concept stocks led the two markets throughout the day, with robotics concept stocks and auto industry chain higher in afternoon trading.

"This week, the A-share market saw a sustained uptrend with a continuation of the pre-holiday upward trend. The regaining of the 3,000 points is a reflection of rising market confidence, and the eight-day gains have effectively enhanced market expectations, indicating that the stock market is expected to remain stable," Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times on Friday.

Yang noted that the stock performance is mainly because the state-owned Central Huijin Investment - seen as a key player in the "national team" - pledged to ramp up investment in the A-share market.

In addition, the China Securities Regulatory Commission (CSRC), the country's top securities regulator, has rolled out an array of reform policies, sending positive signals to the capital market, Yang added.

The commission, led by its newly appointed chairman Wu Qing, held more than 10 back-to-back meetings this week with a wide range of market participants to solicit suggestions on regulations, risk prevention and high-quality development.

In the first press briefing in the Year of the Dragon on Friday, the CSRC vowed that it will adhere to an investor-centered approach, scrutinize enterprises that are to be listed, and severely punish those who violate the law and infringe upon the interests of investors, so as to improve the quality of listed companies from the source.

"Both companies under review for listing and those already listed are subject to continued strict supervision by the CSRC," it noted.

The commission also vowed to build a "penetrating" screening system using multiple technological measures, including all-round monitoring, big data, multi-channel collection and intelligent analysis to identify and crack down on illicit market manipulation and insider trading. Penalties for market illicit practice will increase, and the cost of law breaking will also be higher, it said.

Tian Xuan, associate dean and chair professor of finance with the PBC School of Finance at Tsinghua University, who attended a CSRC meeting on Sunday morning chaired by Wu, told the Global Times that these meetings demonstrated the sincere attitude of the CSRC to fully listen to and respect the views of all parties in the market and respond to their concerns, releasing a warm policy signal of jointly building the market and making continuous efforts to stabilize the market and confidence.

Vigorous economic prospects

"The positive stock performance is also thanks to the continuous improvement of the economic indicators, especially the Spring Festival holiday spending," Tian Yun, a veteran economist based in Beijing, told the Global Times on Friday.

According to the Ministry of Culture and Tourism, the number of trips made during the holidays represented a 19 percent rise from the same period in 2019 before the pandemic, and total spending increased by 7.7 percent from that of the same period in 2019.

Looking ahead, Tian Yun expected economic growth of above 5 percent in the first quarter of this year, as the country's foreign trade and foreign investment are expected to see stable development.

Although China's foreign trade figures for the first two months have yet to be disclosed, the number of the country's container shipments to the US increased by 20 percent year-on-year in January, domestic media outlet ifeng.com reported on Thursday, citing data from US research firm Descartes Datamyne.

Noting that the figures may point to the recovery of China-US trade exchanges, Tian Yun said that if the imports and exports of China and the US can maintain positive growth this year, foreign trade will make a vital contribution to the country's economic recovery.

Multinational corporations also remain optimistic about the opportunities for the development of the Chinese market, and continue to step up their efforts to invest in China.

On Friday, Premier Li Qiang convened an executive meeting of the State Council to study policy initiatives to attract and utilize foreign investment more vigorously. On the same day, the Ministry of Commerce said that in January, foreign investors set up 4,588 new foreign-funded enterprises, a year-on-year increase of 74.4 percent against the backdrop of last year's sustained growth.

Those positive signals came before the country is slated to set a slew of development targets, including the GDP growth rate for 2024, during the upcoming annual two sessions, which are scheduled to kick off in early March.

In 2023, among the 31 Chinese provinces, regions and cities, the number of Chinese cities with GDP exceeding one trillion yuan increased from 24 to 26. The economies of each province and city, like rivers, flow together and form the vast ocean of the Chinese economy. They provide an inexhaustible source of dynamism and potential for China's development, China's Foreign Ministry told a press conference on Friday.

China's efforts to enhance intellectual property (IP) protection have positioned it as a major player in the field, creating new opportunities for mutually beneficial cooperation between China and other countries, Chinese Foreign Ministry spokesperson Wang Wenbin told a press conference on Thursday.

The remarks came after the China National Intellectual Property Administration announced that as of the end of 2023, the Chinese mainland's invention patent inventory had reached a staggering 4.015 million, solidifying its status as an IP powerhouse.

In recent years, China has continuously improved its international IP cooperation mechanisms and established IP cooperation relationships with more than 80 countries, regions and international organizations.

Wang said that China is committed to creating a market-oriented, rule-of-law and internationalized business environment. This commitment has resulted in a steady increase in foreign companies' satisfaction with China's efforts on IP protection. 

As a result, an increasing number of foreign enterprises are choosing to invest and operate in China, thereby sharing in the country's development dividends and vast market opportunities.

China ranked 12th on the Global Innovation Index 2023 of the World Intellectual Property Organization, making it the highest-ranking middle-income economy, reflecting the international community's high regard for China's innovation capabilities.

China's efforts to enhance its technological innovation capacity have injected new impetus into global green and sustainable development, promoting the rapid development of new industries such as electric vehicles, lithium batteries and solar cells, Wang said. 

The top 10 makers of Chinese new-energy vehicles hold more than 100,000 valid patents, with a rapidly growing trend. Chinese companies also rank top globally in terms of patent applications for solid-state batteries and solar cells.

As a result, China's achievements in IP development have become a distinct symbol of its high-quality development and distinguishing mark of Chinese modernization. It is believed that China will make greater contributions to global innovation and development, Wang said.

As China prepares to celebrate the upcoming Chinese New Year - Year of the Dragon according to Chinese zodiac - in February 2024, global luxury brands in various industries including handbags, clothing, chocolate and watches have raced to introduce a wide range of limited-edition dragon-themed items to woo Chinese consumers during the Spring Festival, one of the most important holidays in the country.

Zodiac elements are an important part of traditional Chinese culture, and Chinese dragon carries the auspicious meaning of good fortune, prosperity and wisdom in Chinese culture. Most of the limited-edition items highlight the image of the dragon, one of the 12 Chinese zodiac animals, while some others feature Chinese elements like red and gold color themes.

Recently, dragon-themed outdoor jackets launched by a Canadian brand became an online sensation in China, as a men's jacket, priced at 8,200 yuan ($1,153), quickly sold out, leaving scalpers to reportedly resell the popular item at around 12,000 yuan - a microcosm of Chinese's enthusiasm for dragon-themed items.

Multiple international cosmetic brands have also launched "dragon editions" of various products covering a wide range of beauty products from skincare, makeup to perfume, according to media reports.

"Global luxury brands' deep exploration of the Chinese traditional culture to try to integrate into the local market reflects the growing influence of Chinese culture and the country's strong spending power," Zhang Yi, CEO of iiMedia Research Institute, told the Global Times on Sunday.

In the wake of COVID-19, China's consumer spending has maintained a stable recovery. The country is an increasingly important market for global brands, especially luxury brands, thanks to an expanding middle-class group and continuous consumption upgrade.

According to a report that global management consulting firm Bain & Company sent to the Global Times on Thursday, China's luxury market is expected to grow in the mid-single digit in 2024 following a 12 percent year-on-year increase in 2023, while Chinese luxury consumption is expected to reach 35-40 percent of the world's total by 2030.

Consumption boom

"China is always one of the most important markets of the group," Jenny Gu, Richemont China CEO, told the Global Times recently. The company attended China International Import Expo held in Shanghai for four years in a row in 2023 in order to strengthen the relations between its sub-brands with Chinese consumers and partners, Gu said.

Global luxury brands have increased their focus on China, as the market has become an important driver of global growth in the segment.

Official data showed that duty-free sales in South China's Hainan Province grew by about 25 percent year-on-year to reach 43.76 billion yuan in 2023, thanks to a recovery in domestic travel and stimulus measures implemented by local governments.

"I have conducted surveys in many regions across China since March 2023, during which I strongly felt the robust recovery of economic and social activities nationwide. Chinese consumers' confidence wasn't dampened as badly as many have thought," Cao Heping, an economist at Peking University, told the Global Times on Sunday.

The rebound in tourism has also uplifted consumer spending in both domestic and international markets, Cao said. He said a population exceeding 1.4 billion and a middle-income group surpassing 400 million will continue to power the country's consumption and overall economic growth, attracting brands and businesses from all over the world.

The three-day New Year holidays (from December 30, 2023 to January 1, 2024) produced a travel boom in China's tourism market, signaling a good start for China's consumption recovery efforts in 2024. Industry analysts forecast that the upcoming eight-day Spring Festival holidays, which will start on February 10, are expected to be the most vibrant and prosperous of its kind in recent years.

The tone-setting Central Economic Work Conference held in Beijing in December 2023 pointed out that the Chinese central government will focus on expanding demand in 2024, shifting consumption from post-epidemic recovery to sustained expansion.

The key meeting stressed the need to foster new growth areas such as consumption of smart home appliances, entertainment and tourism, sports events and trendy domestic brands, Zhang said, noting that global companies that could meet the country's consumption upgrade will have bright prospects in the vast market.

Upswing expected

Looking ahead to 2024, many domestic and overseas analysts are positive about China's economic prospects, as targeted policy underscored the resolve and capability of Chinese authorities to ensure a stable economic recovery.

Cao forecast that China's GDP is expected to reach above 5 percent in 2024, saying that consumption will continue to be the most important driving force for the Chinese economy.

Extending the strong momentum during the Spring Festival, the country's consumption sector - be it in urban cities or rural villages, online and offline, in green spending or the silver economy - will continue to rebound, with retail sales in 2024 expected to exceed that recorded in 2023 to reach 50 trillion yuan, Wei Jianguo, former Chinese vice minister of commerce and executive deputy director of the China Center for International Economic Exchanges, told the Global Times on Friday.

Pan Gongsheng, governor of the People's Bank of China, said at a press conference on Wednesday that China will cut the reserve requirement ratio (RRR) by 50 basis points from February 5, which is expected to inject 1 trillion yuan ($141 billion) in long-term liquidity to bolster the economy.

On Friday, the Ministry of Commerce declared 2024 the "Year of Promoting Consumption" and stressed the need to strengthen economic momentum. The ministry said it would continue to relax restrictions on foreign investment and improve the business environment in order to attract more investment.

"The potential growth [of the Chinese economy] should still be above 5 percent in 2024. We will see that the drag by property sector will likely diminish in 2024," Xing Zhaopeng, senior China strategist with ANZ Research, told the Global Times in a recent written interview.

UBS economists led by Wang Tao wrote in a note sent to the Global Times in December 2023 that China's consumption and services sector will extend the post-epidemic recovery trend in 2024, with the gradual release of excess savings making a significant contribution in this regard.