China’s Premier Li Qiang remains optimistic about the country’s economic prospects, expressing confidence that the world’s second-largest economy will achieve its official growth target this year. Speaking at the 26th Asean Plus Three Summit in Jakarta, Li emphasized that the Chinese economy is on track to realize the government’s goal of approximately 5% growth. He highlighted China’s deepening economic ties with Southeast Asia and emphasized the potential for generating new opportunities for both the region and the rest of the world.
Pushing back against comments suggesting long-term structural issues, Li’s remarks aim to dispel concerns surrounding China’s current economic difficulties. Despite recent downbeat data since July, which has led some analysts to revise their GDP expansion forecasts for China this year, Li remains confident that the country will meet its 5% growth target.
China continues to forge ahead, driving economic progress and strengthening its position on the global stage.
China’s Economic Challenges and Policy Support Measures
In a key policy-setting meeting held in July, China’s top leadership acknowledged the challenges arising from weak domestic demand, struggling enterprises, and a complicated external environment. They described the economic recovery in the post-pandemic era as “a process of wave-like development and tortuous progress.”
Subsequently, Beijing has introduced a range of policy support measures. However, economists argue that these measures are insufficient to reverse the current downward economic spiral. This highlights practical limitations, including a substantial amount of local government debt.
Addressing a regional concern, the Chinese premier cautioned against the emergence of “a new Cold War,” particularly involving Southeast Asian countries. This bloc has increasingly become embroiled in great power rivalries and regional conflicts, notably the South China Sea issue.
Leaders from the ten-member Association of Southeast Asian Nations (ASEAN) are currently engaged in talks with senior officials from China, Japan, South Korea, the U.S., and Canada. Among them is U.S. Vice-President Kamala Harris.
In a veiled reference to Washington, Li emphasized that misperceptions, diverging interests, or external interferences could potentially lead to disagreements and disputes between countries. He urged against aligning with particular sides, bloc confrontations, and the possibility of a new Cold War.