Beijing’s leadership on laid out an objective of ‘around five percent’ (AFP/GREG BAKER)
The main conductors of Chinese economic policy showed on Wednesday their confidence in a recovery of the Asian giant this year, despite headwinds which continue to hinder its growth.
Thousands of MPs are gathering this week in Beijing for the annual session of Parliament. This is traditionally the opportunity for the government to present the broad outlines of its social and economic policy for 2024.
“The favorable conditions for China’s economic development outweigh the unfavorable factors,” said Zheng Shanjie, the chief planner of the national economy, at a press conference organized on the sidelines of the event on Wednesday.
“The economic recovery trend will be consolidated and strengthened,” said Zheng, who is chairman of the National Development and Reform Commission (NDRC), China’s macroeconomic management agency.
He was alongside the elite of national economic leaders, with the Minister of Commerce (Wang Wentao), that of Finance (Lan Fo’an), the governor of the central bank (Pan Gongsheng) and the head of the authority of regulation of markets (Wu Qing).
This year’s parliamentary session is being closely scrutinized by the press, investors and ordinary Chinese, many of whom believe their purchasing power has been undermined in recent years.
– “Many difficulties” –
They are waiting for reassuring signs for the world’s second largest economy, struggling with a real estate crisis, flagging exports, weak consumption and high youth unemployment.
“We are also fully aware that in the process of achieving the expected goals, we will still face many difficulties and challenges” in 2024, said Zheng Shanjie.
He notably cited “the external environment which could become more complex” or even the “latent economic risks” in certain sectors.
The Minister of Commerce, Wang Wentao, also expressed concern on Wednesday during the press conference about “downward pressures” on global growth.
Zheng Shanjie said that 2024 would see challenges for China, including ‘hidden risks’ and a ‘complex and severe’ external environment (AFP/WANG Zhao)
Exports, which are generally a very important growth lever for the Chinese economy, fell last year for the first time since 2016.
A consequence of the drop in global demand for Chinese goods, in a context of inflation in developed economies, but also to a lesser extent of Beijing-Washington friction.
In this context, China is struggling to boost its growth.
– Press point canceled –
Commerce Minister Wang Wentao confirmed on Wednesday that despite a recovery in Chinese exports in the first two months of 2024, March would likely be marked by a further decline.
“But the general trend is upwards,” he stressed.
Premier Li Qiang on Tuesday set a target of “around 5%” for Chinese GDP growth this year.
This rate would make many developed nations dream, but for China it remains far from the dazzling expansion that has propelled it to the top of the world economy in recent decades.
This GDP increase objective is also identical to that of last year. If it remains one of the lowest since the 1990s, it will nonetheless be “difficult to reach”, admitted Li Qiang.
China announced this week that its Prime Minister will not organize a press conference at the end of this parliamentary session, breaking with a tradition well established for three decades.
However, Foreign Minister Wang Yi will answer journalists’ questions as planned during a meeting scheduled for Thursday at 10:00 a.m. (02:00 GMT).
© 2024 AFP
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