BEIJING, May 14, 2025 /PRNewswire/ -- What is the outlook for China's economy at a time when the global economic recovery is being hampered? Various parties have given their analyses from different perspectives, and two recent datasets have attracted attention.

In the first four months of 2025, China's automobile production and sales both surpassed 10 million units for the first time, increasing by 12.9 percent and 10.8 percent, respectively, according to data released by the China Association of Automobile Manufacturers on Tuesday. Among them, exports of new-energy vehicles (NEVs) totaled 642,000, up 52.6 percent year-on-year.

The good performance of the strategic, pillar industry of automobiles reflects the deep logic of China's high-quality economic development.

Some foreign media said that Chinese car companies are not only booming at home, but also winning the global market. BYD alone exported nearly 80,000 vehicles in April, up 90 percent year-on-year, mirroring the huge influence of Chinese car companies in overseas markets.

Besides, China's total goods trade grew by 2.4 percent year-on-year in the first four months of 2025, accelerating by 1.1 percentage points compared to the first quarter, according to data released by the General Administration of Customs on May 9.

Notably, April's trade in goods import and export value rose by 5.6 percent, with exports increasing by 9.3 percent year-on-year. Despite external trade headwinds, a key factor in this resilience is the strengths of China's manufacturing and innovation.

Foreign media described the performance as "exceeding expectations."

China's April exports maintained near-double-digit growth despite uncertainties from US tariff policies, indicating the effectiveness of recently introduced intensive policy measures, reported the Reuters.

The resilience of China's economy and its vast potential are seen from these datasets.

Effective policies

Counter-cyclical adjustment in response to time and situation, the effectiveness of policies has stimulated the potential of China's super-large-scale market.

In 2024, China's automobile output and sales both exceeded 30 million units, with exports surpassing 5 million, indicating that industrial growth is mainly driven by domestic demand.

According to statistics by the Ministry of Commerce released on Monday, since the implementation of the vehicle trade-in policy in 2024, the cumulative number of subsidy applications has exceeded 10 million. China's auto trade-in policy is an effective hedge against the impact of US tariffs on consumer confidence, according to foreign media.

As of Sunday, the number of applications for vehicle trade-in subsidies had reached 3.225 million thus far in 2025, including 1.035 million for scrapping and updating vehicles and 2.19 million for replacement updates. NEVs accounted for more than 53 percent of the trade-ins. This indicated that the vehicle trade-in policy has effectively boosted the growth of automobile consumption and green transformation.

In March, China released an action plan to promote the large-scale renewal of equipment and the trade-in of consumer goods. The trade-in policies not only benefited millions of households but also boosted the growth of sales of bulk durable consumer goods.

On April 25, the Political Bureau of the Communist Party of China Central Committee held a meeting, noting that it is imperative to coordinate domestic economic work and endeavors in the international economic and trade field.

The meeting called for enhanced efforts to accelerate the implementation of more proactive and effective macro policies.

Scientific macro-regulation and effective government governance are the sources of China's confidence in addressing various risks and challenges. The synergy between the "visible hand" and the "invisible hand" demonstrates the governance efficiency of the Chinese economy.

By playing a strategically oriented role in national development planning, improving the mechanism for policy coordination and harmonization, enhancing the effectiveness of macroeconomic regulation and control, and promoting a dynamic multi-objective balance, we are fully capable of responding to the uncertainties of rapid changes in the external environment with the certainty of high-quality development.

Innovation-driven

Promoting the deep integration of scientific and technological innovation unleashes economic vitality, which is representing by the automotive industry. Today's Chinese automobile industry is seeing a boom of scientific and technological innovation.

CATL has launched a new sodium battery with a cycle life exceeding 10,000 times, retaining 90 percent of its energy capacity at minus 40 C. At a welding workshop of GAC Trumpchi's Yichang factory, over 500 robots work in sync, which is capable of producing a new vehicle every 52 seconds.

High-end, intelligent, green transformation is everywhere. Demand pulls supply, supply creates demand for a higher level of dynamic equilibrium - high-end concepts are being changed into reality.

Meanwhile, open cooperation maintains a competitive edge. The recently concluded 21st Shanghai International Automobile Industry Exhibition, also known as Shanghai Auto Show, featured over 100 global debut models, with 70 percent of the exhibited vehicles being NEVs.

Foreign media reported that visiting the Shanghai Auto Show leaves a lasting impression, noting that "China is living in the future."

In the first four months, China's high-tech product exports grew by 7.4 percent year-on-year, accounting for nearly 20 percent of total exports and driving overall export growth by 1.3 percentage points.

With a surging innovation engine, China's economy is brimming with new momentum. By seamlessly connecting innovation and industrial chains, China's economic potential is limitless.

Engine for green transformation

China is spearheading the global shift toward low-carbon development, with its sweeping green transition injecting fresh momentum into growth.

Green and low-carbon development is a fundamental solution to environmental challenges and a prevailing global trend.

In the first four months of 2025, China's production and sales of NEVs both exceeded 4 million units, with growth rates surpassing 45 percent, reflecting the global shift toward green and transformative industrial practices.

In China, green production and lifestyles are advancing hand in hand. The country is optimizing its industrial and consumption structures in tandem, aligning supply and demand to unlock new momentum in domestic consumption.

In the streets and alleys, NEVs with green license plates are shuttling around, and more young consumers are choosing NEVs as their "first car in life." The interaction between vehicles and networks is becoming more and more mature, and NEVs not only can be recharged from the grid, but also can transmit electricity to the grid in reverse. NEVs have become popular and integrated into a variety of scenarios, and have become an important carrier for a green and low-carbon life in China.

At the same time, China's manufacturing is increasingly aligned with the growing overseas demand, creating a mutually reinforcing dynamic.

Data showed that in the first quarter of 2025, China's top automobile export destinations included Mexico, the UAE, Russia, Belgium, Saudi Arabia, Brazil and Australia.

China's "intelligent manufacturing" not only meets the needs of global consumers for a better life but also drives and leads the global transition in transportation and energy. Its green production capacity is enhancing global supply chains and supporting international efforts to reduce emissions.

One-third of China's electricity consumption now comes from renewable sources. Chinese wind and solar power equipment are exported to more than 200 countries and regions, enabling widespread access to clean energy. Over the past decade, China has helped cut the global average cost of wind and solar power generation by more than 60 percent and 80 percent, respectively, solidifying its role as a key driver and contributor to the world's green transformation.

In China, we see the future and renewed confidence. This is how the world views China today - and it is a reflection of the country's tomorrow.

https://www.globaltimes.cn/page/202505/1334066.shtml

 

Source: Global Times