By Sardar Khan Niazi

In a time marked by explosive nature and economic headwinds, China’s role as a stabilizing force in the global economy cannot be overstated. With geopolitical tensions flaring, supply chains adjusting to post-pandemic realities, and major economies grappling with inflation and fiscal tightening, China’s economic performance and global engagement are anchoring international confidence in an otherwise turbulent sea. China, the world’s second-largest economy, has demonstrated a pattern of resilience and pragmatism. Its sustained growth, even though at a moderated pace, has acted as a counterweight to stagnation in other regions. In 2024 and into 2025, while Western economies experienced slowed growth or flirted with recession, China managed to maintain a growth trajectory of around 5%, underpinned by domestic consumption, targeted government stimulus, and expanding trade networks. Beijing’s economic policy has largely focused on stability and reform. Rather than pursuing unsustainable expansion, the Chinese leadership has pivoted towards high-quality development, emphasizing innovation, green technologies, and services. This transition, although gradual, is reducing global overreliance on Chinese manufacturing while offering new areas of cooperation, investment, and knowledge exchange. China’s contribution to global economic stability also rests on its consistent international engagement. Through the Belt and Road Initiative (BRI), Beijing continues to invest heavily in infrastructure, logistics, and energy projects across Asia, Africa, and Europe. While the BRI has its critics, it undeniably provides much-needed financing and development for emerging economies — many of which are struggling with debt, inflation, or climate-related challenges. By sustaining demand in these regions, China helps keep global trade and investment flowing. Moreover, China’s robust trade relationships across continents offer a buffer against economic fragmentation. Amid growing protectionist rhetoric in Western capitals, Beijing has doubled down on multilateralism. Its participation in regional partnerships like the Regional Comprehensive Economic Partnership (RCEP) reinforces open markets in Asia-Pacific — the world’s fastest-growing region. It is no exaggeration to say that without China’s active involvement, many developing economies would have fewer lifelines in the current global context. Another key stabilizing feature is China’s currency and financial policy. The renminbi has gradually internationalized, providing an alternative reserve currency for several countries, particularly in the Global South. At a time when some as a risk view reliance on the US dollar, Beijing’s move toward bilateral trade in local currencies offers an alternative to countries facing dollar shortages or sanctions. While still limited in scope, this monetary diversification supports resilience in the global financial system. That said, China is not without its economic challenges. Real estate woes, local government debt, and a shrinking working-age population present long-term concerns. However, it is worth noting that Beijing has historically approached such issues with a long-term view. The state’s ability to implement swiftly policy shifts — as seen during the pandemic and in response to sector-specific bubbles — reflects a governance model that, for better or worse, favors economic continuity. Critics every so often accuse China of non-transparency or assert that its growth comes at others’ expense. While such concerns are not speculative, they every so often ignore the interdependence built into the global system. The reality is when China thrives, many others benefit. Its demand for raw materials sustains exporters in Africa and Latin America. Its consumers drive global brands. In addition, its financial support helps keep inflation and instability at bay in quite a lot of partner countries. In an increasingly multipolar world, no single economy can dictate the terms of stability. Nevertheless, China’s scale, policies, and willingness to engage constructively mean it remains a critical pillar of balance. Whether through trade, investment, or diplomatic coordination, China is helping to hold the global economy together — and that, at this moment, deserves acknowledgment rather than suspicion.