Li Keqiang: "Development Solves All Problems"... China on Edge Ahead of Party Congress Over Economic Growth

[Image source=Yonhap News]

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] As the 20th National Congress of the Communist Party (Party Congress), which will confirm President Xi Jinping's third term, approaches, efforts to expedite economic growth policies are accelerating. Amid a slow economic recovery hindered by COVID-19 prevention measures, the central government is calling for an all-out nationwide response.

According to local media including the Chinese state-run Xinhua News Agency on the 13th, Premier Li Keqiang chaired a State Council meeting on the 8th, just before the Mid-Autumn Festival holiday, to receive reports on economic stability and regional supervision. At the meeting, Premier Li stated, "Under the strong leadership of the central government, continuous efforts have been made in all areas to stabilize the economy," adding, "Although the overall economic recovery continues, there have been changes in the timing of improvements, so it is urgent to solidify the foundation for economic recovery."

He further said, "Under the guidance of the new era of socialism with Chinese characteristics, we must implement new development concepts and effectively coordinate epidemic prevention and economic development," emphasizing, "Development is the foundation and core for solving all our country's problems." He added, "Through joint efforts of the central and local governments, policies must be implemented to stabilize growth, employment, and prices, ensuring the economy operates within a reasonable range."

Premier Li also stressed the importance of economic rebound based on consumption recovery. He explained, "Continuing to implement policy packages for economic stability and subsequent policies is key," and "We must resolve the lack of real demand and use consumption recovery as the driving force."

[Image source=Yonhap News]

He also emphasized the implementation of large-scale state-led projects. He said, "We must accelerate the construction of key projects and increase the allocation of policy-based development finance products according to demand," adding, "Projects initiated in the first half of the year should be advanced early." He urged, "Commercial banks should participate in projects and make full use of medium- and long-term loans," calling for an increase in physical work volume during the remaining months of this year. Regarding the sluggish real estate market, he also mentioned, "Various policy tools should be used to support improved housing demand and implement city-specific policies."

Premier Li explained, "So far, we have maintained the sustainability of macro policies without increasing fiscal deficits or excessively issuing currency," adding, "As a result, a series of policy tools have been reserved, and this year, phased policies such as consumption increase and investment expansion should be rapidly introduced."

Meanwhile, the 20th Party Congress, which will confirm President Xi's third term, is scheduled to be held on the 16th of next month. However, due to the impact of strengthened zero-COVID policies such as city lockdowns ahead of the Party Congress, the Chinese government is facing difficulties in achieving its original annual GDP growth target of 5.5%. Several international think tanks and research institutes are forecasting growth in the 3% range. Internally, there is also a growing critical public opinion regarding the prolonged high-intensity epidemic prevention policies and sluggish economic growth.

This content was produced with the assistance of AI translation services.