Key highlights:
- Central to China’s global influence was the impressive performance of its manufacturing sector, which recorded a robust 5% growth.
- According to the National Bureau of Statistics (NBS), the value-added industrial output, a crucial economic gauge, increased by 4.6 % year-on-year in 2023.
- In 2023, the equipment manufacturing sector saw a 6.8% year-on-year expansion.
- China has made remarkable strides in reducing carbon dioxide emissions relative to its GDP by 34.4%.
The onset of 2023 presented China with a paradoxical scenario. Despite COVID’s grip on the economy, there was a prevailing optimism for a post-lockdown boom fueled by pent-up demand. Beijing set its sights on achieving approximately 5% GDP growth for the year—a target endorsed by forecasts from the International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD), and various private sector economists.
In its December 2022 update, the World Bank anticipated a rebound in China’s economy for 2023 following a year of uneven growth. By March, OECD economists projected that household pandemic savings would propel growth to 5.3%. Despite acknowledging lingering property risks, the IMF also foresaw a 5.2% expansion for China in the same period.
The year 2023 witnessed not only the persistence of China’s economic growth but also its acceleration, marking a period of remarkable expansion and stability in the global economic arena. Central to China’s global influence was the impressive performance of its manufacturing sector, which recorded a robust 5% growth. This sector’s success along with renewable energy initiatives and surging trade played a crucial role in boosting the global supply chain, notably benefiting nations within the Association of Southeast Asian Nations (ASEAN).

Industrial Output Peaks by 6.8% – A Year-End Success!
According to the National Bureau of Statistics (NBS), the value-added industrial output, a crucial economic gauge, increased by 4.6 % year-on-year in 2023. In December 2023 alone, it rose by 6.8% compared to the previous year and by 0.52% compared to November.
This industrial output metric is employed to gauge the performance of major enterprises, each with an annual main business turnover of at least 20 million yuan (approximately 2.81 million US dollars).
NBS data revealed that in November, the collective profits of industrial firms experienced a fourth consecutive monthly increase, soaring by 29.5% compared to the previous year. The industrial capacity utilization rate for the fourth quarter stood at 75.9%, exhibiting an uptick from 75.6%, 74.5%, and 74.3% in the third, second, and first quarters, respectively.
In 2023, the equipment manufacturing sector saw a 6.8% year-on-year expansion, surpassing the average growth rate of industrial production. Specifically, the production of solar batteries, new energy vehicles, and power generation equipment surged by 54%, 30.3%, and 28.5%, respectively.

China: The New Go-To Market for Trade
In 2023, bilateral trade surged, reaching 6.41 trillion yuan. China’s trade with Africa experienced a modest 1.5% growth, totaling $282.1 billion. ASEAN maintained its status as China’s largest trading partner for the fourth consecutive year, according to customs data.
China’s two-way trade with Russia in 2023 amounted to $240 billion. As one of the world’s leading oil consumers, China has become a crucial economic lifeline for Russia, particularly amid Western sanctions. Moscow increased its purchases of Chinese goods, including cars and smartphones, as European and US brands exited the Russian market.
Dollar-denominated trade between China and Russia hit $240.1 billion in 2023, marking a notable 26.3% increase from the previous year, as reported by China’s General Administration of Customs. Chinese exports to Russia surged by 46.9% in 2023 compared to the previous year and soared by 64.2% compared to 2021, predating the Russia-Ukraine conflict, as per customs data.
Trade between India and China also reached a record high of $136.2 billion in 2023, showing a 1.5% year-on-year growth. India’s exports to China also saw a 6% increase over the same period.
Bilateral Trade Highlights (2023)
China’s Bilateral Trade:
- Total: 6.41 trillion yuan
- China-Africa: $282.1 billion (+1.5%)
- China-ASEAN: Largest Partner
- China-Russia: $240 billion (+26.3%)
China-Russia Trade:
- Total: $240.1 billion
- Chinese Exports Growth: +46.9% (YoY)
- Chinese Exports Growth: +64.2% (YoY, compared to 2021)
India-China Trade:
- Total: $136.2 billion
- Overall Growth: +1.5%
- Indian Exports to China: +6%
Furthermore, Chinese corporations have injected $31.8 billion in non-financial direct investments into Belt and Road Initiative (BRI) partner nations. This expansive endeavor has ushered in substantial economic advantages for participant countries, notably in Central Asia and Africa, via considerable infrastructure enhancements.
Alongside, China’s technology sector has witnessed remarkable advancement, as demonstrated by a notable 15.4% surge in patent registrations. Moreover, a 7.2% uptick in consumer expenditure within China has created attractive opportunities for global enterprises aiming to access the expansive and burgeoning Chinese market.
Chinese Investments in Belt and Road Initiative (BRI)
- Total Investment: $31.8 Billion
- Destination Regions: Central Asia, Africa
- Primary Focus: Infrastructure Development
Technological Advancements in China
- Patent Registrations Increase: 15.4%
Consumer Expenditure Growth in China
- Growth Rate: 7.2%
How Did China Achieve Breakthrough in Renewable Energy in 2023?
China has made remarkable strides in reducing carbon dioxide emissions relative to its GDP by 34.4%, establishing the largest carbon market globally while also leading in various renewable energy domains. Notably, in 2023, the nation experienced significant advancements in solar and wind energy capacities, marking a historic moment as renewables and nuclear power surpassed fossil fuel-based capacity for the first time.
During the initial three months of the year, solar installations surged to an unprecedented 34 gigawatts (GW), nearly tripling the previous record, while wind power installations also achieved a new high with 10.4GW added, representing a 32% increase compared to 2022.
Moreover, China’s emphasis on green industries, encompassing electric vehicles (EVs), batteries, and renewable energy, has attracted substantial investments, elevating Chinese firms to prominent positions as global leaders in these burgeoning sectors.
Looking back, 2023 reflects China’s resilience and strategic economic foresight in the face of global uncertainties. The strong showing of China’s manufacturing sector, alongside notable progress in renewable energy and infrastructure projects like the Belt and Road Initiative (BRI), highlights the country’s dedication to sustainable growth and global cooperation. As China forges ahead with innovation and extends its influence across diverse sectors, its transformative effects resonate on a global scale.