GENEVA - "I'm bullish on China's economy in the medium and long term," said Borge Brende, president of the World Economic Forum (WEF), in a recent interview with Xinhua.
While acknowledging that China's economy faces some short-term challenges, Brende pointed out that the Chinese government has introduced a series of measures to stimulate domestic consumption, which has effectively boosted the economy. He made the comments ahead of the WEF's annual meeting, scheduled to kick off in Davos, Switzerland, on Monday.
Brende highlighted China's strong human capital as a key factor in its long-term economic prospects. With more than 10 million university graduates over the past three years, he noted that China possesses an "extremely important" advantage in terms of talent and knowledge. "If you look at knowledge and talent, that is at the core of the future," he said.
Regarding labor force challenges, Brende expressed confidence that the Chinese government has sufficient policy toolbox to address issues like a shrinking workforce.
ALSO READ: China reports steady improvements in agriculture, rural economy in 2024
According to the National Bureau of Statistics, China's GDP grew by 5 percent year-on-year in 2024, meeting the government's full-year target. Brende said that, despite the global shifts in the post-pandemic era, including the rise of nearshoring, China's foreign trade continues to show resilience.
China's total goods imports and exports reached 43.85 trillion yuan (about $6.1 trillion) last year, up 5 percent year-on-year, according to data released by the General Administration of Customs China (GACC). China has become a major trading partner for over 150 countries and regions, according to GACC deputy head Wang Lingjun.
Brende warned that decoupling would have a significant negative impact on the global economy. The International Monetary Fund estimates that severe decoupling and high tariffs could shrink the global economy by 7 percent. He urged all countries to engage in dialogue, address tariff issues constructively, and avoid the pitfalls of decoupling and protectionism.
Artificial Intelligence (AI) is another area Brende sees as a driver of future economic growth. He emphasized that AI has the potential to boost productivity by up to 10 percent over the next decade if applied effectively. Furthermore, he believes that AI is reshaping global trade, with generative AI set to transform industries such as office work and healthcare, while accelerating the growth of digital and service trade.
ALSO READ: Xi: China building a high-standard socialist market economy
The advent of the intelligent age, Brende said, is also creating development opportunities for emerging economies like China.
In the recently released WEF "Global Risks Report 2025," state-based armed conflict, extreme weather events, geoeconomic confrontation, misinformation and disinformation, and societal polarization were identified as the major risks facing the world in 2025.
Brende stressed that many of the risks confronting the world are transnational in nature, particularly in areas like epidemics, climate change, and cybercrime. "We are all in the same boat," he said, calling for greater international cooperation to address these shared challenges.
The WEF Annual Meeting 2025 will center on the theme "Cooperation in the Age of Intelligence." Ahead of the meeting, the WEF's Chief Economists Outlook warned that economic fragmentation, trade disputes, and geopolitical crises are delivering significant uncertainties into global economic growth.
READ MORE: Expert: China likely largest economy ‘by 2035’
While acknowledging the current climate of competition and inward-looking tendencies in many countries, Brende reiterated that cooperation remains the only way to address the world's common challenges. "For global problems, you have to find global solutions," he said.
