China's economic transformation gains momentum

Editor's note: Michael Wang is a CGTN anchor.

China's economy grew 4.5% in the third quarter, accelerating from 4.3% in the previous quarter and bringing growth for the first nine months to 4.6%.

That puts the world's second-largest economy on track to achieve its full-year growth target of 4.5 to 5%, despite a challenging global environment.

But beyond the headline GDP figure, the changing foundations of China's economic growth have become clearer.

According to preliminary estimates from China’s National Bureau of Statistics (NBS), new growth drivers, including advanced manufacturing, the digital economy and modern services, accounted for more than 40% of China's economic growth in the first three quarters.

That is a significant figure.

It suggests that China's economic transformation is not just about investing in future industries.

Those industries are already making a substantial contribution to growth today.

High-tech manufacturing output rose 14.3% year on year in the first nine months, while industrial robot production increased 29.1%.

Even as overall fixed-asset investment declined amid the continuing adjustment in the property sector, investment in equipment and machinery rose 9.7%, while investment in intellectual property products increased 9.3%.

These figures underscore the distinction between the quantity and quality of where China's investment is heading.

A decline in aggregate investment does not mean that all forms of investment are weakening.

China's economy is undergoing a necessary adjustment away from property-related expansion, as capital continues flowing into more productive assets.

Artificial intelligence offers a clear illustration of this ongoing transformation.