China pursues aggressive growth to prevent devastating slowdown: Government aims to ‘transform’ economy

China has enacted a series of ambitious economic reform measures to boost economic growth during difficult economic times Falling housing market and weak spending ——The main reason is that this year’s economic growth will be “about 5%”.

“Achieving 5% growth is going to be challenging,” Elaine Dezenski, senior director and director of the Center for Economic and Financial Power at the Foundation for Defense of Democracies, told Fox News Digital.

“China’s financial data is increasingly unreliable, so even economic news released after the fact is often questioned,” she said. “China’s unemployment rate is proving to be a significant problem for Beijing, with the unemployment rate among individuals aged 16 to 24 rising to a record 21.3%, forcing the government to suspend recording and change the way youth unemployment is recorded.”

Chinese Premier Li Qiang, China’s second-most powerful leader after President Xi Jinping, delivered a work report at the annual session of the National People’s Congress on Tuesday outlining a number of reforms the government will implement.

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“We shouldn’t Ignore the worst-case scenarioLi Keqiang declared at the Great Hall of the People in Tiananmen Square, “We must unswervingly promote the transformation of development methods, adjust structures, improve quality, and enhance efficiency.”

BEIJING, CHINA – MARCH 10: Chinese President Xi Jinping and other government members attend the closing meeting of the Chinese People’s Political Consultative Conference (CPPCC) at the Great Hall of the People on March 10, 2022 in Beijing, China. (Kevin Friel/Getty Images)

China surprised analysts with growth of 5.2% last year. The uneven spurt in growth points to structural weaknesses in the economy and prompts government action until 2024.

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Lee acknowledged that the target would be difficult to achieve, but remained optimistic that a “positive” stance and “prudent” policies would be needed. The aim of the reforms is to “boost employment and income and prevent deflation of risks”.

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Officially recognized, China’s economy faces major headwindsbut achieving 5% growth by the end of the year makes people very optimistic about their ability to continue to resist what may prove to be a devastating slowdown in growth.

Xi Jinping China

Prime Minister Alexander De Croo will visit the People’s Republic of China from 10 to 13 January 2024 (day two) – to meet with Chinese President Xi Jinping on 12 January 2024 in Beijing, China. (Didier Le Brun/Photojournalism via Getty Images)

But Beijing failed to meet its 2022 growth target, achieving just 3% of its target of 5.5%. Zero-COVID policies severely hamper economic activity annual. The end of such policies could result in continued shocks to the Chinese economy.

According to the Associated Press, the International Monetary Fund expects China to grow at 4.2% in 2024, slightly lower than its July 2023 forecast. In the first half of 2023, real estate development investment fell by 7.9% year-on-year.

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“China’s economy is in serious trouble – slowing global growth, weak domestic consumer demand, high youth unemployment and a severely fragile real estate sector,” Dzerski said.

“One possible way for China to address the economic downturn is to increase exports,” she said. “Doing so will lead to growth, but that growth is unlikely to be sufficient to overcome the major obstacles they face.”

“China is facing major economic challenges and even their vast export machinery cannot save them this time,” she added. “It also brings a new risk to China’s two main export markets – the United States and Europe: dumping Products such as electric cars and solar panels may lower costs for consumers, but also squeeze U.S. and European manufacturers out of the market as those industries begin to edge out U.S. and European manufacturers.”

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The general slowdown has changed expectations, with analysts no longer convinced that China’s economy can overtake the U.S. economy: recent expectations estimated that China would reach peak income sometime in the 2030s, but many now question whether that will happen.

Li Keqiang said China wanted to curb industrial overcapacity and devote more resources to technological innovation and advanced manufacturing – part of Xi Jinping’s push “New productivity”.

Reuters contributed to this report.

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By Ali Raza

I am a dedicated and skilled News Content Writer with a passion for delivering accurate and engaging stories to a diverse audience. With a solid background in journalism and a keen eye for detail, I bring a commitment to excellence and a deep understanding of the evolving media landscape.

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