Sebastien Le Belzic
China wants to get back on the path to growth at all costs so that its GDP growth will exceed that of the United States by the 20th Communist Party Congress this fall. Order of President Xi Jinping. Result, a whole series of announcements in recent days to boost the economy despite the confinements linked to the resumption of the Covid in China.
China is embarking on a real race for growth with the aim of overtaking the United States. An obstacle course when more than a quarter of the Chinese population is confined to Shanghai and a major economic lung township. But President China Jinping has a dream of beating the United States to become the world’s leading economic power. .
“The industrial sector is doing remarkably well”
“It is true that the pandemic is having a negative impact on consumption and e-commerce. But at the same time, the industrial sector is doing remarkably well. The government is providing favorable support for investments in several industrial sectors. compensate for the effects of the pandemic”, explains on Europe 1 Chen Rui, economist, China specialist for the bank Goldman Sachs.
A growth rate of 5% in the second quarter
This support in particular involves massive investments in infrastructure, with projects for new TGV lines, ports and airports. Support also for companies in high technologies and the Internet, which the regime has long fought to break the monopolies. Finally, Beijing is supporting the debt-ridden real estate sector.
China is targeting a 5% growth rate in the second quarter. Enough to pave the way to a historic third term for Xi Jinping at the Communist Party Congress this fall.