by Xinhua Writer Jiang Tingting
BEIJING, April 10 (Xinhua) -- For years, some Western politicians have painted China as a one-dimensional economy overly reliant on exports, with some even going further to accuse China of being "the most unbalanced economy" in the world. Such accusations are nothing but old cliches that crumble under scrutiny.
The World Bank data presents an irrefutable fact: China's trade-to-GDP ratio plummeted from 64 percent in 2006 to 37 percent in 2023, dwarfed by Germany's 83 percent and the Republic of Korea's 88 percent in 2023.
This shift mirrors China's pivot toward growth driven by domestic demand, which accounted for nearly 70 percent of its GDP growth last year.
To boost consumption, the country has taken concrete steps, including launching consumer goods trade-in programs, improving the consumption environment, and raising residents' income.
Far from relying on export-fueled growth, China now places "expanding domestic demand" high on the agenda of economic development. Any claim to the contrary disregards both statistical evidence and policy directions.
The myth that China has been exploiting its trade relationship with other countries to amass trade surpluses is unfounded, particularly when considering how trade data are calculated.
For instance, Tesla's Shanghai Gigafactory exported one third of its first 3 million cars to markets such as Europe and the Asia-Pacific region. While these exports technically contribute to China's trade surplus, the profits generated primarily flow to American shareholders. This phenomenon highlights the sophisticated nature of global trade that some Western policymakers often overlook.
Beyond the technicalities of trade surplus calculations, there's a broader economic impact that deserves attention. Affordable yet high-quality Chinese exports have served as an underappreciated stabilizer for the global economy, significantly lowering inflation while creating numerous jobs across logistics, retail, and e-commerce sectors for China's trading partners.
That rings true for the United States, too. Rather than a threat, China functions as an unwitting subsidizer of American purchasing power. The real drivers of America's deficit lie in its domestic economy. With a low household savings rate, the United States fuels a cycle of excessive consumption and underinvestment in productive capacity.
The dollar's global hegemony further exacerbates this situation. Its dominance enables the United States to sustain a trade deficit by leveraging global demand for its currency and debt, perpetuating a persistent gap between imports and exports.
As a matter of fact, China is a vital part of global economic stability. Over the past decade, China has consistently acted as a cornerstone of global growth, contributing roughly 30 percent of annual global GDP expansion. It also holds an indispensable position in anchoring stable global industrial and supply chains as a major trading partner for 150 countries and regions.
China's emphasis on developing new quality productive forces -- including advancements in AI, green technology, and advanced manufacturing -- is accelerating its transition to high-quality growth. This shift not only strengthens its domestic economy but also provides momentum for global industrial upgrading.
Amid rising protectionism and unilateralism, China continues to expand high-standard opening up: shortening its negative list for foreign investment, optimizing its business environment, and offering multinational companies access to its vast market of 1.4 billion consumers.
China's trade with the Belt and Road partner countries has helped promote economic development in less-connected regions, while its export of affordable green technologies -- such as solar panels and wind turbines -- has offered much-needed support for climate actions in underdeveloped regions including Africa.
These initiatives underscore a broader truth: China's economic and technological advancements are not mere stand-alone efforts but catalysts for global progress.
Through balanced growth, expanded opening-up, and innovation-led cooperation, China is poised to become an even more vital force in advancing global development and tackling shared challenges.
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