China has unveiled an economic agenda outlined in the interim report on its 14th five-year plan, published by the parliament. The plan aims to bolster domestic demand, ensure a rapid recovery, and foster stable growth. Zheng Shanjie, head of the state economic planning body, emphasized priorities such as restoring and expanding consumption, stabilizing bulk consumption, and promoting service consumption. China has implemented various measures in recent months to support its post-pandemic economic recovery. However, challenges in the property sector, risks associated with local government debt, and a sluggish global economy have hindered a full recovery.
The state planning body reiterated the importance of resolving the property sector crisis and controlling local debt while emphasizing the need for deeper market-oriented reforms to boost development. Coordination to address risks in key areas like real estate, local government debt, and small and medium-sized financial institutions is also part of the agenda.
Addressing concerns over technology exports, Zheng stressed the need to accelerate breakthroughs in key core technologies, achieve high levels of scientific and technological self-reliance, and avoid being “locked” in low-end and middle-end technologies and industries. This statement comes amid escalating tensions between the US and China over key technologies.
Despite ongoing challenges, industrial profits in China witnessed double-digit growth in November, marking the fourth consecutive month of positive trends. The 29.5% rise in profits, following a 2.7% increase in October, indicates an improvement in overall manufacturing. However, weak demand continues to constrain business growth, prompting calls for more macro policy support.
State-owned firms reported a 6.2% decline in earnings this year, foreign firms saw an 8.7% fall, and private-sector companies posted a 1.6% gain, providing a mixed outlook for China’s industrial sector in 2023.
Post Your Comments