China’s Xi says economic recovery ‘still at critical stage’

China's Xi says economic recovery 'still at critical stage'

BEIJING: President Xi Jinping said that China’s economic recovery is “still at a critical stage”, state broadcaster CCTV reported on Friday (Dec 8), as sluggish domestic activity and property sector woes drag on a post-pandemic rebound.

The world’s second-largest economy expanded a moderate 4.9 per cent in the third quarter, slightly less than Beijing’s five per cent target, which is one of the lowest in years.

“At present, the country’s economic recovery is still at a critical stage,” Xi said at a meeting of China’s Communist Party Politburo, the country’s top decision-making body, according to CCTV.

Xi urged measures to boost the economy, saying that “the development situation facing the country is complex, with increasing adverse factors in the international political and economic environment”.

“It is necessary to focus on accelerating the construction of a modern industrial system, expand domestic demand, (and) prevent and defuse risks,” said Xi.

Xi also emphasised the need to shore up “self-reliance” in key science and technology sectors, and to “accelerate the construction of a new development layout”.

Officials have struggled to sustain a recovery from the impact of the COVID-19 pandemic, even after removing draconian containment measures at the end of 2022.

Exports rose in November for the first time in seven months, officials announced Thursday, although the reading compares with a low base from last year when the impact of COVID-19 policies were being felt the most.

Chinese exports – long a key growth driver – had largely been in decline since last October except for a short-lived rebound in March and April.

A surprise drop in imports in November highlighted weak consumer activity at home.