PWC – China Economic Quarterly, 1Q 2024

In the first quarter of 2024, China's GDP grew by 5.3% year on year, on track to reach the official 5% target. The surge in manufacturing led to a 6.1% growth in industrial output, with high-tech manufacturing expanding by 7.5%. Services retail sales grew by 10.0%, surpassing goods growth of 4.0%. Exports increased by 4.9%, driven by a 6.8% rise in mechanical and electrical products. Despite the manufacturing PMI rising to 50.8 in March, the continuation of expansion is uncertain due to unpredictable export prospects. The article "Demystifying China’s FDI landscape: Debunking five myths" challenges misconceptions such as foreign companies leaving China, China being solely a manufacturer, the FDI strategy focusing solely on cheap labor, the significance of FDI for China's economy, and whether discriminatory policies discourage FDI. It showcases how FDI landscape in China is evolving, with foreign companies increasingly investing in China's domestic service industry and high-tech sectors and how they contribute valuable technological spillovers to the economy. It also highlights that China's FDI policies are more open than commonly perceived.