China’s Unstoppable Economic Rise: Overcoming Global Challenges

Kazi Abul Monsur#

China has now emerged as the world’s second-largest and most powerful economic superpower, following the United States. However, this massive economic development and technological capability did not happen overnight. Instead, China’s Communist government under Mao Zedong and its people had to work tirelessly to reach this stage. Especially after World War II, when the country’s economy was in a shattered state, the Chinese government meticulously implemented long-term development plans to rebuild it.

Despite facing severe economic devastation post-World War II, China introduced radical reforms in its education system. The country strategically shifted its education structure toward technology, industry-oriented, and practical vocational training instead of a traditional academic system. Within a short period—almost five decades ago—this transformation triggered a wave of economic growth and an industrial revolution. China quickly transitioned from an agriculture-based economy to a highly labor-intensive and technology-driven industrial revolution, making a global impact.

During the 1950s and 1960s, Western media often ridiculed and mocked China’s fragile economic condition. But now, even if the entire European economy is combined, it cannot match the size of China’s economy. Today, in terms of economic power, only the United States surpasses China. According to Forbes magazine, as of 2025, the nominal GDP of the U.S. is projected to be $30.34 trillion, while China’s nominal GDP is expected to be $19.53 trillion.

Despite recent global economic downturns posing challenges to China, the country has maintained its position as the world’s leading foreign exchange reserve holder for the past decade. According to updated reports from Wikipedia and the State Administration of Foreign Exchange of China, as of March 7, 2025, China’s foreign exchange reserves stood at $3.227 trillion, compared to $3,380.4 billion on November 1, 2024. These figures provide a strong indication of China’s overall economic strength.

Although China’s foreign trade suffered significantly in 2023 due to ongoing economic and trade conflicts with the U.S., the country remarkably rebounded toward the end of 2024. According to a report by the General Administration of Customs of China, by December 31, 2024, China’s total foreign trade (imports and exports) amounted to $5.98 trillion, compared to $5.87 trillion in 2023 and $6.05 trillion in 2022.

Furthermore, data from the General Administration of Customs of China states that in the 12 months of 2024, the country exported goods and services worth 25.45 trillion yuan ($3.47 trillion) and imported goods and services worth approximately $2.51 trillion. In 2023, China exported $3.38 trillion worth of goods and services and imported $2.56 trillion, reflecting a 4.6% decline in exports and a 5.5% decrease in imports compared to 2022.

According to the IMF’s prediction, the nominal GDP growth rate of the U.S. in 2024 was 2.8%, while China’s growth rate was 4.8%. Forbes magazine and Wikipedia estimate that in 2025, China’s annual nominal GDP growth rate will be 4.5%, compared to 2.2% for the U.S. However, Reuters reports that China’s unemployment rate among individuals aged 25-29 has increased from 6.9% to 7.3%, while the unemployment rate among those aged 30-59 has risen from 4.0% to 4.3% in 2025.

A World Bank Blog survey found that in 2024, China earned approximately $48 billion in remittances over 12 months. However, India topped the global remittance list, earning $129.1 billion in 2024. Other countries in the rankings include Mexico ($68.2 billion), China ($48 billion), the Philippines ($40.2 billion), and Pakistan ($33.2 billion). According to September 2024 data, China’s total outstanding foreign debt stood at approximately $2,516.9 billion.

Western nations believe that China’s foreign debt and investment policies have created severe economic challenges for low-income and impoverished countries in recent years. Specifically, China has trapped these nations in a form of “hidden foreign debt” over the long term. Over the past decade, China has emerged as the world’s largest lender. According to international financial research firm AidData, China provided loans amounting to $1.3 trillion to more than 150 countries between 2000 and 2022. Of this amount, approximately 80% of the loans were directed toward financially distressed countries such as Sri Lanka, Pakistan, Zambia, and Ethiopia.##

Sources: U.S. Government Accountability Office, Global Times, IMF, World Bank, AidData, China Customs, Reuters, and Wikipedia.