By Gabriela Sanchez
Assistant of Federation of Journalists of Peru, Peru
Since the market reforms initiated in 1978, China has transitioned from a planned economy to a socialist market economy, emerging as a global economic power. Its growth has been driven by strategic industrial policies, infrastructure investment, and a focus on technological innovation. This article about my impressions of China aims to explore how China’s economic development has influenced the global economy and global geopolitical dynamics.
Since the late 1970s, China has experienced unprecedented economic growth, lifting hundreds of millions of people out of poverty. In 2024, the Chinese economy accounted for approximately 18.5% of the global economy and contributed nearly 35% of global economic growth. China also contributed approximately 30% of global growth with a 5% economic growth rate.
China’s global economic growth has allowed it to consolidate its position as a key driver of the global economy. Its Gross Domestic Product (GDP) surpassed $18 trillion, making it the second-largest economy in the world, behind only the United States. This growth has been driven by a combination of industrial policies, infrastructure investment, and a focus on technological innovation.
Since the beginning of the 21st century, China has consolidated its economic presence in Latin America, becoming a strategic partner for the region. Through direct investments, loans, and infrastructure projects, Beijing has expanded its influence in key sectors such as energy, mining, technology, and infrastructure.
By 2025, the Chinese economy will represent a significant percentage of trade and investment in Latin America, although there is no exact figure defining its total weight in the region. China is an important trading partner and source of foreign investment for many Latin American countries.
China has emerged as a key partner for Latin America and other developing regions. Through the BRI and other initiatives, China has invested in infrastructure, energy, and technology projects in countries such as Brazil, Argentina, and Peru. These investments have contributed to economic development in these regions, although they have also raised concerns about debt and political influence.
Since the signing of the Free Trade Agreement between Peru and China in 2010, economic relations between the two countries have strengthened significantly. China has emerged as one of Peru’s main trading partners and sources of foreign direct investment (FDI).
The Chancay megaport, located on Peru’s central coast, stands as one of the most significant Chinese investments in port infrastructure in Latin America. This project, led by the Chinese company COSCO Shipping Ports, seeks to position Peru as a key logistics hub between Asia and Latin America, with profound implications for the regional economy.
One of the main advantages of the Port of Chancay is its ability to significantly reduce maritime transit times between Peru and Asia. It is estimated that travel time will be reduced from 35 to 25 days, representing a 20% reduction in logistics costs. This efficiency positions Chancay as a strategic gateway for trade between Latin America and Asia.
The Port of Chancay not only benefits Peru but also has repercussions for the entire Latin American region. Connecting directly to the Port of Shanghai, Peru’s mega-port facilitates access to neighboring countries, opening doors to Asian markets and improving the competitiveness of Latin American exports. Furthermore, as part of China’s Belt and Road Initiative promoted by Xi Jinping, the port strengthens economic and trade ties between Asia and Latin America.
The Chancay megaport represents a strategic investment that positions Peru and Latin America for a new era of connectivity and international trade. Its development not only boosts the Peruvian economy but also strengthens regional integration with Asian markets, opening up new opportunities for growth and cooperation on the continent.
China’s economic development has transformed the country into a central player in the global economy. Its focus on sustainability, technological innovation, and the expansion of its influence through the BRI have had a significant impact on global economic and geopolitical dynamics. However, domestic demographic and economic challenges require attention to ensure sustainable growth in the future. How China addresses these challenges will determine its role on the world stage in the coming decades.
This analysis highlights how China’s economic development and growth have not only transformed its own economy but have also had a profound impact on the global economy, especially in developing regions such as Latin America. As China continues its rise, it will be crucial to monitor how it manages its internal challenges and how it interacts with the rest of the world in its pursuit of sustainable and equitable growth.
For decades, China was perceived globally as a “copycat country”, better known for its massive replication of foreign products than for its capacity for innovation. However, in the last fifteen years, this perception has radically changed. China has emerged as a technological powerhouse with its own innovation ecosystem, driven by ambitious state policies, massive investment in research and development, and a dynamic domestic market that enables the rapid adoption of new technologies.
The “Made in China 2025” plan has been instrumental in driving technological innovation in key sectors such as artificial intelligence, robotics, and biotechnology. Despite the challenges posed by technological sanctions, China has made significant progress, becoming a world leader in areas such as electric vehicles, solar panels, and high-speed rail. This transformation has allowed China to reduce its dependence on foreign technologies and strengthen its position in the global knowledge-based economy.
The Belt and Road Initiative (BRI) has been a key strategy for China in its effort to expand its economic and political influence. As of early 2024, more than 140 countries participated in the BRI, representing nearly 75% of the world’s population and more than half of global GDP. This initiative has promoted infrastructure construction in developing countries, facilitating trade and strengthening economic ties between China and other nations.
China’s recent history in technology demonstrates that moving from copying to creating is possible when there is a vision of the state, sustained investment, and a society prepared to embrace change.
China is no longer just a follower, but a key player in shaping the global technological future. Although it faces complex challenges, its innovative capabilities will continue to set the pace for key industries such as AI, electric mobility, biotechnology, and digital infrastructure.
In the coming years, the world will not only be watching what technologies China creates, but also how these technologies will influence our societies, economies, and development models.
China has recognized the need for a transition to a greener and more sustainable economy. By 2024, the country will install more than 373 gigawatts (GW) of renewable energy, reaching a total installed capacity of 1,878 GW. Furthermore, China has set ambitious goals to reduce its dependence on fossil fuels and increase the proportion of energy from non-fossil sources. These initiatives not only seek to improve energy security but also position China as a leader in the fight against climate change.
China’s commitment to a green economy was strongly formalized with the 12th Five-Year Plan (2011-2015), which for the first time established concrete environmental goals. These goals have been further developed in subsequent plans. The 14th Five-Year Plan (2021-2025) emphasizes the importance of sustainable development, efficient resource use, combating climate change, and promoting clean technologies.
China has also set a goal of peaking carbon emissions before 2030 and achieving carbon neutrality by 2060. To achieve these goals, multiple policies have been deployed, ranging from environmental taxes and subsidies for clean technologies to emissions trading schemes.
The Chinese government has promoted this transition through subsidies, tax breaks, massive construction of charging infrastructure, and restrictions on the use of polluting vehicles in urban areas.
In addition to cars, China is electrifying its public transportation: thousands of electric buses and taxis are already operating in cities like Shenzhen and Beijing, significantly reducing local emissions.
*The views and opinions expressed in the articles are solely those of the individual authors and do not reflect the position of the Secretariat of the Belt and Road Journalist Network.