China‘s competitiveness fell four places, from 17th to 21st, in the World Competitiveness Ranking 2023, compiled by the Swiss-based Institute for Management Development (IMD).

From a medium-term perspective, China’s competitiveness has shown the following trajectory: 2019 (position 14), 2020 (20), 2021 (16), 2022 (17) and 2023 (21).

Among the main challenges facing China in 2023, according to the China Institute of Development Planning at Tsinghua University, are: maintaining stable economic growth and increasing employment; expanding domestic demand through effective investment, boosting consumption; and promoting the in-depth integration of the digital and real economy to facilitate high-quality development.

China also requires deepening reform and opening up to boost market vitality, and improving the business environment and restoring confidence in the private economy.

China’s competitiveness

On a disaggregated basis, China scored the following results in the 2023 edition. In economic performance: domestic economy (3), international trade (39), foreign investment (6), employment (29) and prices (29), and in government efficiency: public finance (27), fiscal policy (22), institutional framework (36), business legislation (39) and social framework (31).

In addition, in business efficiency: efficiency and productivity (31), labor market (13), finance (28), management practices (25) and attitudes and values (14), and in infrastructure: health and environment (33), basic infrastructure (18), technological infrastructure (9), education (32) and scientific infrastructure (10).

Economy

The United States and China have been engaged in a trade war that has led to trade frictions between their economies and negative repercussions for world markets and other nations closely linked to those countries.

The current political climate has intensified concerns about the ongoing trade war between China and the United States as each country has imposed tariffs on the other’s products.

Also, the relationship between China and several countries, including the United Kingdom, remains complex.

In addition to the United States, the United Kingdom, the European Union and other countries have imposed various sanctions and trade restrictions on Chinese individuals and companies.

In response, China has imposed sanctions and introduced new laws and trade restrictions.