A skyline view of Nanjing, East China's Jiangsu Province File photo: VCG

The Chinese economy showed steady performance in the first nine months of 2026. One positive development worth highlighting is that industry remains one of the main pillars supporting economic growth. Industrial output grew by 5.3 percent year-on-year in the first three quarters, and China's manufacturing purchasing managers' index (PMI) rose from 49.8 in August to 50.1 in September. The quality and composition of investment - particularly investment in forward-looking and strategic sectors - indicate that the economy could expand on more robust foundations going forward.

China has set an economic growth target of 4.5 to 5 percent for 2026, while striving to achieve better results in practice. The country's growth rate in the first three quarters of the year stood at 4.6 percent. I believe China will be able to achieve its target by making use of policy instruments to stimulate investment. 

I noticed that the People's Bank of China, the country's central bank, pledged recently that it will continue to adopt a moderately loose monetary policy and create a sound monetary and financial environment for steady economic growth and smooth operation of financial markets. While these domestic policy levers shape China's growth trajectory at home, they also carry profound implications for its role in the global economy. 

China's integration into global production has brought about significant changes in the international division of labor. It is essential to recognize that a significant part of China's competitive advantage reflects genuine gains in competitiveness stemming from its scale of production, infrastructure, highly integrated supplier networks, investment, technological learning and innovation. In this sense, the structural transformation of global industry associated with China's rise also creates considerable opportunities for the modernization of productive capacities, the establishment of technological partnerships and the development of new business opportunities.

China's advances in the production of goods and services are indeed impressive. I remember that when I visited China in 2005, I encountered an economy undergoing profound transformation, with buildings and new factories being constructed and special export zones being established. Among the key focus areas at the time were transport and traffic management, particularly in urban areas, the need to expand exports on a competitive basis, and efforts to reduce pollution.

From that point onwards, the trajectory seemed clearly defined. China was laying the groundwork for a comprehensive modernization drive that would eventually address many of these very issues through a long-term policy aimed at promoting massive investment in public infrastructure, which remains one of the main challenges facing developing countries today.

Over 20 years later, when I returned to the capital city of Beijing, I found a city with remarkably quiet traffic, a model of urban development associated with high levels of well-being, and a much more diversified economy in terms of both goods and services. China has demonstrated what can be achieved in just twenty years through long-term planning and economic policies geared toward growth and development. The expansion of the subway network, the widespread adoption of new energy buses, and the greening of former industrial corridors stand as tangible evidence of a city - and a country - that has transformed the initial challenges of its growth into concrete improvements in people's lives.

Currently, as unilateralism and protectionism are now resurging, global economic growth lacks momentum, and economies face mounting uncertainties in their development prospects. In this context, alternative economic and financial arrangements are becoming increasingly necessary to maintain global stability, sustain trade and investment flows, and ensure the smooth functioning of international business. I believe that China can play a significant role in this evolving landscape by strengthening cooperation with countries of the Global South and fostering partnerships based on equality and mutual benefit - a genuine win-win approach. 

Achieving shared prosperity requires sharing the benefits of technological innovation, albeit at different levels and in ways tailored to each country's specific circumstances. It is also important to develop a financial platform that facilitates transactions in local currencies, thereby reducing the need for more vulnerable countries to take on external debt denominated in hard currencies.

Looking ahead, it is possible to observe China's efforts to advance high-quality development, technological self-reliance, and green transition will generate fresh opportunities for international collaboration. As the world's second-largest economy navigates its current adjustment with characteristic pragmatism and foresight, the Chinese experience offers valuable lessons for nations committed to lifting their people out of poverty and into prosperity, despite the differences in historical and institutional trajectories across countries. The past 20 years have proven the efficacy of long-term vision backed by decisive action; the next twenty will likely see China playing a greater role as a catalyst for shared global progress.

This article is compiled based on an interview with Luciana Acioly da Silva, coordinator for Monetary and Financial Studies at Institute for Applied Economic Research (Ipea) in Brazil.
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