Despite recent concerns about China's economic prospects, the world's second largest economy looks set to maintain growth. Its performance in the first quarter (Q1) of this year offers a glimpse into its evolving dynamics.

The country's GDP reached 29.63 trillion yuan ($4.09 trillion) in the first three months of 2024, up 5.3 percent year on year, data released by the National Bureau of Statistics (NBS) on April 16 showed. The growth rate was an acceleration of the 5.2-percent growth recorded in 2023. This performance positions China well to meet its target of around 5-percent GDP growth for the full year. The NBS attributed the positive momentum to a rebound in the industrial sector and improvements in the services sector.

Specifically, the electric vehicle, solar cell and service robot industries increased more than 20 percent year on year in Q1. These new industries are all part of China's new quality productive forces, on which the country has pinned high hopes to drive its economy in the future. In addition to lifting traditional industries to a higher-end, smarter and greener level, this concept calls for fostering new industries such as bio-manufacturing and commercial spaceflight, advancing the digital economy and integrating digital technologies into the real economy.

The services sector, too, made strides, contributing 55.7 percent to overall growth. This trend especially prevails during peak tourism periods such as the Spring Festival, China's most important annual holiday, which fell in early February this year.

Nevertheless, imbalances remain. Large companies are achieving a better recovery than micro, small and medium-sized enterprises, and consumption is lagging behind production, the NBS cautioned. 

China is facing severe challenges in economic development, particularly domestic demand deceleration and protectionist policies of some developed countries. Mindful of the need to complete a paradigm shift, China is refining its approach to development.

It has rolled out a raft of policies such as a program to promote equipment renewals and consumer goods trade-ins. Equipment renewals alone are expected to create annual investment in key sectors exceeding 5 trillion yuan ($690 billion).

Moreover, as the country changes gears and sustains its own growth, it opens up new horizons for global cooperation. China's promotion of new demands, such as renewable energy, will only contribute to making the world a better place to live in.