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Chinese economy in stable recovery

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By Lu Ya’nan, People’s Daily

China has maintained stable economic recovery as a series of stimulus packages and follow-up measures took effect.
New impetus for economic development played a more important role as the industrial structure continuously optimized. Demand for consumption, investments, and exports all increased steadily. The economic recovery is gaining momentum.
According to the figures released by National Bureau of Statistics (NBS) on Oct. 24, China’s GDP grew by 3 percent year on year in the first three quarters of this year. In particular, the third-quarter growth stood at 3.9 percent, up 3.5 percentage points from that in the April-June period.
In general, the Chinese economy saw major economic indicators recover despite negative impacts from unexpected factors. The real economy maintained stable development; economic recovery stayed in positive territory; consumer prices grew mildly; employment remained stable.
In the first nine months of this year, the added value of the secondary industry accounted for 40.2 percent of the country’s GDP, up 1.1 percentage points from a year ago.
The consumer price index grew 2 percent year on year in the same period, 0.3 percentage points higher than the first-half growth and making a sharp contrast to the high inflation currently prevalent in many places around the world.
China’s surveyed urban unemployment rate in the first three quarters averaged 5.6 percent. That in the third quarter was 5.4 percent, 0.4 percentage points lower from the second quarter.
Both secondary and tertiary industries recovered in the third quarter as a series of stimulus packages and follow-up measures to bolster the economy took effect.
Industrial and supply chains of the secondary industry were stabilized.
In the third quarter, the value-added industrial output reported by enterprises above the designated size, or those with annual revenue from principal business of at least 20 million yuan ($2.75 million), increased 4.8 percent year on year, up 4.1 percentage points from the second quarter, with the growth accelerating month by month.
Twenty-three provincial-level regions reported faster growth, narrowed decrease, or a rebound in the growth of the value-added industrial output of enterprises above the designated size from the second quarter. The rebound rate reached 74.2 percent.
The capacity utilization in the automobile manufacturing industry, in particular, reached 75.7 percent in the third quarter, up 6.6 percentage points from the previous quarter, thanks to the rapid recovery of the sector’s industrial and supply chains.
The year-on-year growth rate of value-added output turned from a 7.6 percent decline in the second quarter to a significant increase of 25.4 percent. In the July-September period, the production of new energy vehicles surged 113.1 percent, 20.8 percentage points higher than that in the second quarter.
The service industry saw improved performance.
In the third quarter, China’s service production index expanded 1.2 percent year on year, up 4.5 percentage points from the second quarter. In particular, wholesales and retailing, transport, warehousing and postal services, as well as accommodation and catering sectors all leaped from negative to positive growth.
In September, the index for business activities in the productive service sector had been within the high expansion range for four consecutive months. The business activity indexes of postal services, telecommunication, radio and television and satellite transmission, as well as monetary and financial services were all above 60 percent.
The industrial structure continues to optimize as the production recovery.
In the third quarter, the value added of the high-tech manufacturing sector increased 6.7 percent year on year, 1.9 percentage points higher than the average of industries above the designated size nationally.
New energy and new material products maintained high-speed growth. The production of ultra-clear textured solar glass and polycrystalline silicon surged by 83.2 percent and 56.1 percent, respectively.
As frontier technologies are increasingly applied in the service sector, new consumption models are created, making new impetus for the development of the sector.
China’s economic recovery enjoys robust momentum. Rapid growth was observed in exports, which makes foreign trade resilient; residents’ demand for high-quality and green commodities rose gradually; construction of major projects was accelerated, expanding effective investment.
In the first three quarters, exports of goods and services, final consumption expenditure and gross capital formation contributed 32 percent, 41.3 percent and 26.7 percent to China’s total economic growth, driving the country’s GDP to grow 1 percentage point, 1.2 percentage points and 0.8 percentage points, respectively.
Despite the improvement in key economic indicators, China will make a big push to implement existing policy measures to consolidate the foundation for economic recovery, the NBS said.

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China’s new chapter in global innovation

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By Gu Yekai, Liu Yiqing, People’s Daily

At a smart construction project site managed by China State Construction Engineering Corporation, a quiet technological revolution is underway. Amid cranes and concrete, engineers are deploying advanced artificial intelligence (AI) systems that could fundamentally reshape the construction industry.

Li Fengjian, an AI specialistwith Xianyuan Technology, detailed how the company’s latest intelligent system – built on a large model – adapts to complex construction environments.”Engineering machinery equipped with intelligent agents can adjust its operations automatically in response to weather conditions,” Li explained, adding that a spatiotemporal sensing network further enhances the system, providing real-time tracking of both personnel and materials throughout the construction site.

In February this year, Xianyuan Technology rapidly integrated its self-developed model with DeepSeek-R1, effectively blending a general-purpose framework with industry-specific models. This integration, Li noted, has produced a solution capable of delivering expert-level performance in challenging, dynamic environments. The firm is based in the Shanghai Foundation Model Innovation Center, aburgeoning AI incubator that now hosts over 200 innovative enterprises.

China’s technological transformation extends well beyond the construction sector. Overthe past three decades, the country has evolved from its initial forays into internet connectivity to becoming a key player in global digital innovation.

Here, a steady stream of technological innovations are emerging, from the early days of emails and web browsing to the cutting-edge technologies represented by DeepSeek and the dynamic evolution of social media.

Wu Jianping, an academician at the Chinese Academy of Engineering and headof the Zhongguancun Laboratory, pointed out that while China had introduced only one internet standard before 2005, it now contributes to over 200 worldwide. Such strides illustrate the country’s concerted push toward high-level technological self-reliance – a journey marked by both persistence and determination.

Beyond the digital realm, China is makingsignificant inroads in aerospace, new energy, and other high-tech sectors. It has transitioned from being a follower to standing shoulder-to-shoulder with global leaders, and in some areas, even taking the lead. Wu attributed these achievements to a dynamic ecosystem of policy reforms and talent cultivation that encourages creativity and technical expertise at every level.

Amid intensifying international competition, collaborative research and the integration of new technologies with traditional industries are central to China’s high-quality economic development.

Mei Linhai, a researcher at China’s State Key Laboratory of Cognitive Intelligence, remarked that the age of AI calls for continuous exploration. “In this era, everyone is an innovator. Only by persistently pushing the boundaries can we remain at the forefront of both technological and industrial development,” Mei observed.

In the field of general-purpose AI, Mei emphasized that independent innovation is paramount. He advocates for a self-driven industrial ecosystem that leveragesbreakthrough technologies to boost productivity and unlock new possibilities, Mei said.

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Chinese democracy in action:a village bench meeting shapes national law

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By Wei Zhezhe, Liu Botong, People’s Daily

In a modest corner of Jiangmen, south China’s Guangdong province, residents of Weidong village are experiencing firsthand a form of democracy that starts at the grassroots level and reverberates all the way to Beijing.

Wu Tengxin, a local villager who relies on a scooter for daily mobility after contracting polio, recalls a time when the village’s public spaces were ill-equipped for people with disabilities. Now, thanks to a simple suggestion made during a meeting, his everyday life has changed.

In November 2022, a team from a local legislative outreach office – a branch of China’sNational People’s Congress (NPC) – visited Weidong village and set up a “bench-style meeting.” Residents, including the elderly and those with disabilities, gathered to voice their concerns about inadequate accessibility.

Amid the conversation, Wu offered a straightforward proposal: “I hope rural accessible facilities can be improved to make mobility easier for people with disabilities and the elderly.” His words were relayed verbatim to lawmakers.

The response was swift. On June 28, 2023, at the third session of the 14th NPC Standing Committee, legislators passed a law on building a barrier-free living environment. The law stipulates that improvements”shall align with social and economic development levels, coordinate urban and rural progress, and gradually narrow the gap in infrastructure between urban and rural areas.”

Today, Wu observes that the village’s main roads and public squares have been upgraded with accessibility features that make getting around considerably easier.

This episode illustrates what Chinese officials call “whole-process people’s democracy” – a system where citizen input is woven into every stage of policy development.

Jilie Ziri, head of Abuluoha village in Butuo county, southwest China’s Sichuan province, remarked that for young generations in China, democracy has become a lived experience. “Villagers are the masters of village affairs,” he said, emphasizing how active villager participation has injected new vitality into local governance.

Experts point to consultative democracy as a cornerstone of this process. Tao Kaiyuan, vice chairman of the Central Committee of the China Association for Promoting Democracy and vice president of the Supreme People’s Court, underscores the important role of the Chinese People’s Political Consultative Conference, whose members hail from every stratum of society and bring a wealth of expertise and connections.

Their regular forums, field research, and public consultations have created robust channels for citizens to contribute ideas and forge consensus.”This approach gathers collective wisdom and transforms public voices into policy,” Tao said.

Another crucial manifestation is the effectiveness of China’s political party system. Under the leadership of the Communist Party of China, Chinese democratic parties actively fulfill their duties, offering recommendations that often translate into concrete policy decisions. This integrated approach demonstrates the unique strengths of China’s political system and the advantages of whole-process people’s democracy.

Tao emphasized that whole-process people’s democracyhas evolved into an efficient and dynamic democratic practice – one that not only reflects the essence of socialist democracy but also presents a pioneering model of political civilization, contributing Chinese wisdom and solutions to global governance and democratic development.

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Chinese modernization: blueprint for global progress

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By He Yin, People’s Daily

At China’s recent annual “two sessions,” Chinese modernization once again captured global attention. International observers are closely following a range of new measures designed not only to accelerate Chinese domestic transformation but also to unlock fresh opportunities for global development.

They believe that Chinese modernization, built on a foundation of openness and cooperation, will continue to yield global benefits with each new milestone.

Today, China stands as a formidable force in the global economy – accounting for around 18 percent of the global economy and nearly 30 percent of world manufacturing output. Year after year, the nation has contributed about 30 percent to global economic growth. With import and export records with almost all countries and regions designated in the United Nations Statistics Division, the country is a major trading partner for more than 150 countries and regions. In 2024, its exports to over 160 countries and regions saw growth.

Often hailed as the “world’s largest developing country,”the “second-largest economy,””world’s factory,””global market,” and “innovation powerhouse,” China is increasingly viewed as a beacon of stability and progress.

In recent years, high-profile events such as the seventh China International Import Expo – where intended deals exceeded $80 billion – and the establishment of over 1.239 million foreign-invested enterprises have reinforced the nation’s reputation as a vast, dynamic market.

Meanwhile, policies encouraging Chinese companies to “go global” have seen a steady stream of new technologies, goods, and services permeate international markets, knitting the country ever tighter into global value chains and bolstering its commitment to win-win cooperation.

The influence of Chinese modernization is evident far beyond its borders. In the Central African Republic, President Faustin-Archange Touadera has repeatedly screened China’s political documentary Carry the Reform Through to the End for cabinet discussions, while officialsin Uzbekistan are adapting China’s poverty-reduction experience to suit their national context. These moves challenge the assumption that modernization must follow Western models, suggesting that China’s alternative pathway offers a viable route to development.

Beyond economic growth, Chinese modernization is increasingly celebrated for its potential to foster win-win cooperation and shared prosperity.

Under the Belt and Road Initiative (BRI), for example, Kazakhstan secured its first maritime access and Laos launched its first modern railway. Support from the Global Development and South-South Cooperation Fund has propelled over 160 projects, benefiting more than 30 million people. Moreover, China has given all the least developed countries with which it has diplomatic relations zero-tariff treatment for 100 percent tariff lines, signaling its commitment to an open and inclusive global economy.

China’s modernization agenda also tackles global challenges head on. In response to global environmental risks, China advocates for building a community of all life on the Earth. To bridge the digital and AI divide, it has launched the AI Capacity-Building Action Plan for Good and for All to ensure that technological advancements benefit every corner of the globe.

On the security front, China continues to promote dialogue and reconciliation in conflict zones while engaging in multilateral security collaborations, reinforcing its reputation as a nation committed to peace and stability.

By proposing initiatives such as the Global Development Initiative, the Global Security Initiative, and the Global Civilizations Initiative, China is not just charting its own course toward modernization but championing an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization – one that seeks to ensure that no nation is left behind on the path to prosperity.

The global appeal of Chinese modernization is far from accidental. Decades of reform and opening up have accelerated its development while enabling the country to contribute to global governance. On the international stage, it has taken on a leadership role – actively shaping global norms, building a community with a shared future for mankind, and advancing world peace and development. By sharing its successful experiences and technological advancements, the country seeks to help other developing countries chart their own courses toward progress.

With over 1.4 billion people engaged in this modernization journey – a number that surpasses the total population of all developed countries combined – China’s approach is redefining the global modernization landscape. For China, modernization is not solely a national endeavor but a blueprint for global progress – a vision that promises a more inclusive future for all.

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