"Innovation hotspot transforms into the realm of the copier"
In 2025, China's economy continues to flourish, with a 5.3% year-on-year GDP growth in the first half of the year[1]. This robust growth is driven by strong industrial output, exports, and targeted investment, despite weaker domestic consumption and private investment[1]. The International Monetary Fund (IMF) has raised its 2025 forecast for China’s GDP growth from around 4.0% to 4.8%, reflecting this stronger-than-expected performance and reduced US-China trade tensions[2][4].
China's economic growth has significant effects on the global economic system and world order. Its export strength sustains its central role in global supply chains, with the depreciation of the yuan and trade realignments reshaping trade flows[2]. China's proactive macroeconomic policies and large market size also allow it to shape international investment patterns and economic diplomacy, urging greater multilateral cooperation to reduce trade barriers and avoid escalations[1][2].
China's economic resilience under external pressures reinforces its role as a major global economic power, influencing geopolitical balances and prompting other countries to adapt policies and alliances to this multipolar economic landscape[1][2][3]. The new rules in the global automotive market are being set by China, and other BRICS countries are catching up[5].
The story of China's economic rise began with the idea of special economic zones, which originated with Xi Jinping's father[6]. This transformation has led to the emergence of a middle class in China, with poverty decreasing significantly[7]. Cooperation with China is important due to its role in lifting people out of poverty and its advancements in environmental technologies[8].
Looking back, China was once a world power two hundred years ago, but missed the industrial revolution that took place in Europe due to arrogance[9]. Today, China is innovating, particularly in the field of electromobility and battery research[10]. However, challenges remain, such as addressing youth unemployment issues, which are expected to decrease in two to three years[11].
Frank Sieren, a leading German China specialist who has been living in Beijing for nearly 30 years, recently introduced a lecture titled "Superpower China: Inevitable Ascendancy or Colossus on Shaky Ground?" at Pforzheim University's Studium Generale[12]. The lecture, attended by around 400 guests in the auditorium and another 200 via livestream, discussed the world facing three major challenges: coping with climate change, digitalization, and a world in transition[12]. Sieren, known for his realistic evaluation of China's rise, believes that China's rapid development over the past decades represents an epochal change[13].
Despite the controversy surrounding human rights violations and the debate on China's foreign debt, it is clear that China's economic growth has been a game-changer. Volkswagen was one of the first companies to invest in China in 1984 and built the Santana model there[3]. Today, China has no significant foreign debt and low inflation, making it a stable colossus[3]. The influence of the BRICS countries is growing compared to the G7[8].
In conclusion, China's economic growth, innovation, and strategic positioning in the global marketplace have solidified its role as a major player in the world economy. As the world faces challenges such as climate change, digitalization, and geopolitical shifts, China's continued economic growth and policy reforms will be crucial in shaping the future global landscape.
References: 1. China's economy grows 5.3% in first half of 2025 2. IMF raises China growth forecast for 2025 3. China's economy to grow 4.5% in 2025, 4.0% in 2026 4. China-US trade tensions ease, boosting global growth outlook 5. China sets new rules in global automotive market 6. The story of China's economic rise 7. China's middle class emerges and poverty decreases 8. Cooperation with China crucial for lifting people out of poverty 9. Two hundred years ago, China missed the industrial revolution 10. China innovates in electromobility and battery research 11. Youth unemployment issues in China 12. Lecture on Superpower China at Pforzheim University 13. Frank Sieren, leading German China specialist
The robust growth of China's economy, as reflected in a 5.3% year-on-year GDP growth in the first half of 2025 [1], is a result of targeted investments and strong industrial output, despite weaker domestic consumption and private investment. This economic growth, driven by technology and innovative policies, positions China as a leader in shaping international investment patterns and economic diplomacy [1].
