Editor's Note:
Amid turbulence in the external environment due to geopolitical conflicts and global uncertainties brought by rising unilateral moves by the US, China's economy navigates with stability and resilience. The Global Times recently interviewed Michele Geraci, former Undersecretary of State at the Italian Ministry of Economic Development, and he shared views on China's economic development, noting that the country's transition features a high-tech, innovation-led growth model, with free trade and green development.
As China set a target of about 5 percent for this year's economic growth at the two sessions, there are reasons to remain optimistic about China's prospects. The Chinese government has established clear goals that offer both challenges and opportunities. Reflecting on years of progress, the two sessions and these goals have long served as a platform for foreign observers to witness China's dynamic approach to economic development.
Business representatives were encouraged not only by the government's confidence in achieving around 5 percent growth but also by signals that this momentum will be driven by high-tech development.
References to companies such as DeepSeek and emerging players like the six Hangzhou start-ups known as Six Little Dragons in Hangzhou highlight China's transition toward a high-tech, innovation-led growth model - a development that offers reassurance and opportunities for global investors and partners.
Many factors contribute to growing optimism around China's economic growth target, particularly from the perspective of foreign enterprises.
China is leading the world in the development of renewable energy, with installed capacity of renewable energy exceeding 1.45 billion kilowatts in 2023. In Northwest China's regions like the Ningxia Hui Autonomous Region, Gansu Province and Xinjiang Uygur Autonomous Region, vast expanses of wind and photovoltaic farms stretch as far as the eye can see.
This marks China as a pioneer in both the supply and demand sides of green technology. Companies like BYD have emerged as global leaders, with BYD now surpassing Tesla in certain aspects, making it the largest electric vehicle company in the world.
China is effectively tackling both sides of the energy equation - advancing the production of renewable energy while promoting its widespread adoption. Achieving a balance between supply and demand is vital for ensuring system stability, and China is making simultaneous progress on both fronts. With abundant wind, solar and land resources, the country stands as a leading example of how to build a well-integrated and sustainable green energy ecosystem.
At the China Development Forum 2025, this was precisely the message China aimed to convey - that a green economy must demonstrate a viable balance between supply and demand.
The focus was not solely on reducing carbon emissions, but on proving that green development is commercially and economically sustainable. As experts noted, the broader public and investors are primarily concerned with financial returns and income, rather than CO2 figures.
The key is that China is showing the green transition drives economic growth and creates tangible benefits. This is the narrative that resonates, and it underscores the kind of cooperation needed among countries and companies to advance a truly sustainable future.
In 2024, China added 373 gigawatts of new renewable energy capacity, a 23 percent year-on-year increase and accounting for 86 percent of the country's total newly installed power capacity.
Since 1978, China has been opening up more and more, with a focus on expanding international trade and cooperation. For instance, the introduction of zero tariffs for low-income countries in Africa sends a strong signal that China aims to facilitate greater exports from these nations.
China has also been progressing with more free trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP) with Southeast Asia and ASEAN.
Last year, China's total trade with Belt and Road Initiative (BRI) partner countries reached 22.07 trillion yuan ($3.04 trillion), up 6.4 percent year-on-year. Trade with fellow members of the RCEP totalled 13.16 trillion yuan, up 4.5 percent year-on-year.
Meanwhile, the country is increasingly focusing on developing its commercial agreements with Asian and African nations, instead of focusing on the West. This strategic shift reflects China's recognition that some Western countries can sometimes be unreliable.
China adopts a pragmatic and flexible approach to international cooperation. It actively engages with countries such as Hungary, Slovakia, Serbia and Portugal that are open to deepening economic ties, while respecting the decisions of others like the Czech Republic, Italy and Poland that choose to keep their distance.
In 2024, China's total trade reached 43.85 trillion yuan, a year-on-year increase of 5 percent, setting a new record high in value.
Share what is good for you, that's what China is doing. China's position is clear: cooperation is based on mutual willingness.
Italy's exit from the BRI was a big mistake. It raises the question - why abandon a free option? The initiative represents an opportunity that comes with no binding obligations and should not be discarded lightly.
For those willing to engage in business, China's platform is open. Under this joint initiative, the opportunity for cooperation with Chinese companies to develop Asia, Africa and other regions through infrastructure development, such as railways, energy and manufacturing, is significant.
The article was compiled based on an interview with Michele Geraci, former Undersecretary of State at the Italian Ministry of Economic Development. bizopinion@globaltimes.com.cn