China is predicted to contribute to global economic recovery in 2023.

Analysts predict China will continue to be a steady and key driving force of global economic growth in 2023, owing to its economy's durability and potential.

In the face of multiple challenges this year, China has maintained overall economic stability by effectively coordinating COVID-19 policy with economic and social development, as well as introducing a series of stimulus packages to support enterprises, stabilize consumer prices, and boost global investor confidence.

The annual Central Economic Work Conference, which took place in Beijing from Thursday to Friday, stated that China's economic performance in 2023 is likely to improve generally.

The Central Economic Work Conference, in elaborating fiscal and monetary, industrial, research and technology, and social policies for 2023, prioritized economic stability and demanded pursuing steady progress while ensuring economic stability for the coming year.

According to a meeting called earlier this month by the Political Bureau of the Communist Party of China Central Committee, China has also vowed to significantly grow domestic demand and to give full play to the fundamental role of consumption and the critical role of investment in 2023.

Given Beijing's various policy levers at its disposal to ensure a resilient recovery, analysts believe that the Chinese economy will do well in 2023.

Kristalina Georgieva, Managing Director of the International Monetary Fund, stated that China has fiscal space to bolster its economy and counteract downward pressure.

"We envisage three to four quarters of high growth, beginning possibly in the second or third quarter of next year," wrote analysts at international financial services business Societe Generale, forecasting the Chinese economy to increase by roughly 5% in 2023.

In a recent analysis, Morgan Stanley forecasted that China would mount a comeback beginning in mid-2023, with full-year growth of 5%.

Analysts' confidence is based on a number of favorable signs and indicators.

"Chinese equities have climbed 37% since the beginning of November, owing to several positive reopening signals from Beijing," UBS analysts Christopher Swann and Vincent Heaney said in a research note on Monday.

Meanwhile, a slew of global corporations are growing their presence and investing in China. According to official figures, foreign direct investment in the Chinese mainland for actual use increased 17.4 percent year on year to 168.34 billion US dollars in the first ten months.

Volkswagen, a German carmaker, is among the heavyweight investors, having committed investments of up to 3 billion dollars in two new R&D-focused joint ventures in China alone in the second half of 2022.

"The largest corporations that have poured billions of dollars into local assets are staying put and following through on their investment plans," Rhodium Group said in a research released Tuesday, underscoring investors' optimism about China's market prospects.