Xi Jinping Commits To Strengthen Economic Recovery, Acknowledges Some Chinese Businesses Saw Tough 2023

Xi Jinping also reiterated the world’s second-biggest economy’s intention to annex Taiwan, a self-governing democracy, which China claims is its province, and said ‘it will surely be reunified’

Chinese President Xi Jinping pledged to strengthen the economic pace and deliver job creation during his New Year’s message on Sunday while acknowledging that some Chinese businesses endured a difficult 2023 economically. 

Lauding China’s achievements in his address on TV, the Chinese leader noted, “Along the way, we are bound to encounter headwinds. Some enterprises had a tough time. Some people had difficulty finding jobs and meeting basic needs,” as reported by the Guardian.

Xi Jinping also reiterated the world’s second-biggest economy’s intention to annex Taiwan, a self-governing democracy, which China claims is its province, and said ‘it will surely be reunified’. “All Chinese on both sides of the Taiwan Strait should be bound by a common sense of purpose and share in the glory of the rejuvenation of the Chinese nation,” Xi said.

“We will consolidate and strengthen the momentum of economic recovery, and work to achieve steady and long-term economic development,” he added, as reported by Bloomberg. 

The leader further stated that his government intends to provide a better life for the public, ‘our children should be well taken care of and receive good education, our young people should have the opportunities to pursue their career and succeed, and our elderly people should have adequate access to medical services and elderly care’. 

Notably, the Chinese economy has seen a slow recovery, primarily due to a severe slump in its real estate market, muted global demand, and record levels of youth unemployment. Evergrande, the country’s biggest developer some time ago, began a debt restructuring process this year, while its main competitor, Country Garden, defaulted in October, the report said. 

Further, China’s factory activity narrowed more than expected in December owing to a fall in new orders. While new orders declined to 48.7, export new orders logged at 45.8. Production remained in an expansion state but clocked lower at 50.2. The worse-than-expected figures imposed a shadow on its economic outlook, and enhanced expectations for fresh stimulus measures in the new year. 

In 2024, Beijing is anticipated to aim for a growth rate of nearly 5 per cent, while achieving the same will be harder due to a higher base. Investor confidence in the economy has plunged over concerns regarding the country’s opaque policymaking and elevated interest rates, which have sparked capital outflows.

The latest crackdown on the gaming industry led to a $80 billion meltdown, while foreign investors logged their smallest-ever annual purchases of Chinese stocks. 

Xi lauded China’s ‘manufacturing prowess’ citing a list of projects including the domestically built C919 passenger jet, a made-in-China cruise ship, space programs, manned submersibles, and electric cars. 

The official manufacturing purchasing managers’ index (PMI) for the country slipped to 49 in December from 49.4 in November, falling below the 50 mark that divides growth from contraction. This marks the third consecutive month of decline and remained the weakest reading for the index since June.