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Did Xi Jinping admit China's economy is not improving? Facing ‘hidden risks’
Xi Jinping on China's economy: The ruling Communist Party called for greater confidence in the world’s second largest economy.
China pledged to boost demand and upgrade its industry at an economic meeting. Top leaders including President Xi Jinping “using technology innovation” should lead the nation’s industrial development as they called for the development of “several strategic emerging sectors,” state media reported. China is facing “insufficient effective domestic demand, overcapacity in certain industries, weak expectations and rather many hidden risks,” according to the report.
“The complexity, severity and uncertainty of external environment is rising,” it added.
The ruling Communist Party called for greater confidence in the world’s second largest economy, saying its overall “improving trend” was unchanged. China’s post-pandemic recovery has been hampered by weak global demand, record high youth unemployment and property crisis.
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China's leaders also pledged to meet builders’ reasonable financing needs, ensure employment for “key groups” of people, and maintain reasonable, ample liquidity, Bloomberg reported.
“The measures sound rather traditional and nothing much was very creative,” Jacqueline Rong, chief China economist at BNP Paribas SA said, adding, “Investors’ reaction to this might be rather plain because it takes an indication of a vastly stronger-than-expected pro-growth policy to trigger very excited response.”
The Central Economic Work Conference was held in Beijing from Monday to Tuesday. Xi Jinping made an speech at the event, which was attended by all seven members of the Politburo Standing Committee, as per state media. The final day of the conference overlapped with Xi Jinping’s visit to Vietnam, marking the first time the Chinese leader traveled abroad during the annual economic conference.
