As the world’s second-largest economy, China faces an increasingly complex and unpredictable global environment. Trade tensions, supply chain disruptions, and domestic structural challenges continue to test its economic resilience. Yet, despite these headwinds, it is reassuring that Beijing remains steadfast in advancing deep economic reforms, expanding market access, and driving a new wave of sustainable growth.

The 2025 China Development Forum, held recently in Beijing, sent a clear and positive message: China is not retreating behind protectionism or isolationism, despite such moves by some major economies. Instead, it is boldly accelerating its opening-up policies, inviting more foreign investment, and reinforcing its role as a stabilizing force in global economic integration. This proactive approach — anchored in long-term strategic planning — is critical not just for China’s next phase of economic expansion but also for global economic stability. China’s economic trajectory over the past four decades has been shaped by an unwavering commitment to reform. From the late paramount leader Deng Xiaoping’s reform and opening up in the 1970s to President Xi Jinping’s emphasis on high-quality development, China has continuously adapted its policies to evolving global and domestic realities.

Recent economic indicators suggest that China is successfully weathering short-term pressures better than many expected. Goldman Sachs analysts note that GDP growth is tracking slightly above 5 percent, outperforming conservative forecasts. While challenges persist — particularly in the real estate sector and consumer confidence — key reforms are beginning to yield results.

For instance, China’s State Council recently unveiled an ambitious action plan to attract foreign investment, including measures to ease restrictions on foreign investment in manufacturing, streamline cross-border mergers and acquisitions, and enhance regulatory transparency and legal protections for foreign businesses.

These measures reflect a broader shift away from debt-fueled growth and property speculation toward a more balanced, innovation-driven economy. While some skeptics argue that deeper financial liberalization is needed, Beijing’s careful but steady approach signals a commitment to stability amid global uncertainty.

For decades, China’s rapid industrialization was fueled by exports. However, as global trade dynamics shift and tariffs from the US increase, Beijing has prudently recalibrated its growth model. The new focus? Domestic consumption, technological innovation, and industrial upgrading.

Premier Li Qiang’s optimistic speech at the China Development Forum underscored this shift, urging global business leaders to reject economic fragmentation and embrace open markets. He reaffirmed that China’s economy remains “full of potential and vitality” despite external pressures — a confident outlook that is backed by tangible policy actions.

China’s latest “trade-in” stimulus program, designed to boost consumer spending on durable goods like home appliances and vehicles, is already showing results. Early 2025 retail sales exceeded expectations, indicating a steady recovery in domestic demand.

Additionally, China’s investments in artificial intelligence, renewable energy, and advanced manufacturing are reshaping its economic landscape. The surge in interest surrounding DeepSeek, a cost-efficient AI model, exemplifies China’s growing leadership in next-generation technology — a sector poised to drive long-term economic momentum. Despite extensive progress, China is not immune to external pressures. The geopolitical situation remains fraught with complexities, particularly with US President Donald Trump’s latest round of tariffs targeting multiple countries, including China.

But Chinese leaders recognize that economic decoupling benefits no one. Premier Li’s recent meeting with US Senator Steve Daines and top American business executives reflects Beijing’s willingness to keep dialogue open, even amid tensions. His statement — “No country can achieve development and prosperity through imposing tariffs” — is a pointed reminder that economic interdependence remains crucial.

Beyond the US, China is intensifying engagement with Europe, the Association of Southeast Asian Nations, and the Global South. The expansion of Belt and Road Initiative projects, coupled with China’s leadership in BRICS+ economic cooperation, underscores Beijing’s commitment to a multipolar global economy. Critics may argue about the influence that China gains through these initiatives, but there is no denying that its ability to build economic alliances remains a key strength. While China’s economic fundamentals remain robust — bolstered by a vast consumer base, unparalleled manufacturing capacity, and relentless innovation — the next growth wave will require deeper structural transformations. These include financial liberalization — expanding capital market access for foreign investors and ensuring greater monetary policy flexibility; State-owned enterprise reforms — enhancing efficiency, increasing private-sector participation, and improving market competitiveness; green economy leadership — strengthening China’s role in global climate initiatives, particularly in renewable energy and electric vehicles; tech-driven productivity — scaling up AI, automation, and digital economy policies to sustain long-term growth.

While China’s shift from infrastructure-heavy investments to high-tech industries is promising, it must also navigate challenges such as an aging population, real estate sector volatility, and global supply chain reconfigurations. How Beijing balances these factors will determine the sustainability of its next economic wave. China’s deepening economic reforms and steadfast commitment to opening up go beyond short-term stimulus or crisis management. They represent a calculated, forward-thinking strategy for long-term, high-quality growth. By championing market liberalization, spearheading technological advancements, and strengthening global partnerships, China is positioning itself as a central player in the next phase of globalization.

While uncertainties persist, China’s resilience lies in its ability to adapt and thrive in a shifting economic landscape. Its commitment to innovation, strategic diplomacy, and economic modernization will be pivotal in shaping the global economic order. For investors, businesses, and policymakers worldwide, understanding and positively engaging with China’s evolving economic paradigm is not merely an option — it is an imperative.

The author is an economics and politics analyst, award-winning columnist of Philippine Star and Abante newspapers, book author, college teacher and moderator of the Pandesal Forum.

The views do not necessarily reflect those of China Daily.