Reference News Network, December 25 report: Bloomberg News website, December 24 published an article titled "Repeat with Me: Never Underestimate China," by the company's columnist Ren Shuli. The article points out that 2025 has been turbulent, from the trade war initiated by US President Trump to the development of artificial intelligence. One of the most important lessons is: never underestimate China.

"To ignore China is a big mistake"

Bloomberg News' article says that at the beginning of the year, economists predicted that China would follow in the footsteps of Japan in the 1990s. Trump's re-election and trends such as supply chain diversification and business relocation by exporters posed challenges to China's manufacturing dominance.

However, by year-end, everyone's views had completely changed. China dared to confront Trump's trade bullying strategy, maintaining its position, still the most dynamic "factory" in the world. With the AI boom driving Hong Kong's stock market to a four-year high, foreign investors are returning.

How did China manage to get out of the crisis and achieve remarkable achievements in technology, biotechnology, and even national defense?

The article suggests that first, the emphasis on higher education in China is starting to pay off. China's talent pool has grown significantly: between 2000 and 2020, the number of engineers increased from 5.2 million to 17.7 million; in 2022, 47% of researchers in the top 20% globally in artificial intelligence completed their undergraduate studies in China, far exceeding the 18% in the United States. This means that according to the law of large numbers, innovation breakthroughs will inevitably occur, and China still maintains a cost advantage in advanced manufacturing.

Secondly, China is pragmatic, and the competition in the field of artificial intelligence is a good example. The US pursues the "Holy Grail"—here more precisely, general artificial intelligence—while China pushes the industry toward "application-oriented," striving to lock in the beneficial factors that AI might bring into strengthening manufacturing advantages. Across the country, industrial robots operate in "dark factories," which have high efficiency and can work even in dim lighting. Companies are also using artificial intelligence to speed up logistics transportation and shorten product design cycles.

Now, the productivity gains brought about by artificial intelligence and automation are evident: China's goods trade surplus has reached a record $1 trillion this year, surpassing export powerhouses like Germany and Japan, with the fastest-growing areas being advanced manufacturing sectors such as automobiles, integrated circuits, and ships.

Thirdly, local brands have seized consumer demand and gained opportunities in global trade. Fantasia Company is an excellent example. Its gross profit margin reaches 70%, more than twice that of ordinary toy manufacturers, thanks to the cute and popular toy Lulubu. Looking ahead, Chinese brands will increasingly be renowned globally for design and aesthetics. Shoppers will enjoy the quietest air conditioners, low-key luxurious designer handbags, and ice cream with flavors comparable to Italian products. "Chinese fashion" is about to amaze the world.

The article points out that it is puzzling why Western thought leaders have made such a big mistake in understanding the world's second-largest economy. One thing is certain: ignoring China would be a big mistake, and another true economic superpower is only China.

Innovation Strategy Boosts Growth

Pakistan's Express Tribune website, December 23 published an article titled "Reconsidering the 'China Peak Theory'," by Muhammad Babar Johar.

The article states that Harbin Institute of Technology in China has tried allowing its doctoral students to substitute products or design outcomes for papers to graduate. This policy reform aims to address engineering bottlenecks in the context of technological competition with the United States. This new approach recognizes the importance of practical knowledge in engineering education, breaking the traditional model where writing papers was a prerequisite for obtaining a doctorate.

Evidently, China's approach is aimed at producing more designs or products, enhancing innovation momentum, thereby boosting economic growth rate and global influence.

The article believes that this approach is a strategic response to some critical assumptions behind the "China peak theory." This view holds that China's economic growth and global influence may have reached a peak. However, China's proactive implementation of product-oriented engineering education provides new arguments against the "China peak theory," indicating that China will achieve long-term economic growth driven by innovation.

Technological advancement is directly related to changes in product demand in local and international business markets. This means that when humans are affected by innovation and new technologies, supply and demand relationships will constantly change, paving the way for countries like China to achieve sustainable economic growth driven by innovation.

China's emphasis on acquiring practical innovative knowledge not only challenges the assumption of the "China peak theory," but also greatly expands the boundaries of technology and cognition.

This strategy will enable China to maintain remarkable growth rates for decades to come.

China has established government-supported funds for emerging technologies, which also reflect China's strategic preference for progress based on products or designs.

The article concludes that China's new policies reflect its guiding philosophy of pragmatism, flexibility, adaptability, and practicality, and are building a sustainable model of economic growth.

Foreign Trade Demonstrates Resilience

According to the UAE News Agency on December 23, key regions in China, including the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Beijing-Tianjin-Hebei region, all achieved stable growth in foreign trade in the first 11 months of this year.

From January to November this year, the total import and export volume of the nine cities in the mainland of the Greater Bay Area reached 8.3 trillion yuan, an increase of 4.6% year-on-year, setting a new high for the same period in history.

More than 70% of the imported and exported goods were electromechanical products, with exports mainly consisting of electronic components, computer-related parts, and other high-tech products. Imports of aquatic products, dairy products, and other consumer goods increased by more than 20%.

During the same period, the total trade volume of the Yangtze River Delta region reached 15.46 trillion yuan, increasing by 6.2%, and the imports and exports to countries along the Belt and Road Initiative increased by 11%.

For the first 11 months, the total import and export volume of the Beijing-Tianjin-Hebei region reached 4.3 trillion yuan, with exports reaching 1.32 trillion yuan, setting a new high for the same period in history. Notably, private enterprises' exports exceeded 600 billion yuan for the first time, growing by 16.1%, accounting for 47.4% of the region's total exports during the same period.

The Indian financial information website "Wealth Management" reported on December 22 that China's economic strength is the key to shaping the future of the global order. China's export engine successfully weathered the storm of Trump's tariffs. In fact, in the first 11 months of this year, China's goods trade surplus exceeded 1 trillion U.S. dollars. Calculated in RMB, exports increased by 6.2% year-on-year from January to November.

The report states that the Chinese leadership has outlined the general framework of the 15th Five-Year Plan, which will affect the country's economic development by the end of this decade. Great power competition is the core of this blueprint. The ability of China to participate in and ultimately win the competition will depend more on its capacity to stabilize and revitalize the economy. (Translated by Zhao Feifei, Wang Diqing, Lin Zhaohui)

Original: toutiao.com/article/7587632847108784649/

Disclaimer: This article represents the views of the author himself.