Economic Concerns Grow... Yet China Calls "Crisis Theory Is Delusion"

Li Chang and Other Senior Officials Deny Economic Crisis Theory

As the economies of China and the United States, the two major economic powers, face significant instability, the 'China crisis theory' is intensifying worldwide. However, senior Chinese officials are presenting contrasting views.

According to the Chinese Ministry of Foreign Affairs on the 2nd, Premier Li Chang met with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), at the Great Hall of the People in Beijing the previous day and stated, "Since the beginning of this year, the Chinese economy has been continuously recovering, and the overall recovery is improving."

He said, "We will further strengthen policy adjustments to promote economic growth," and introduced plans to "steadfastly adhere to reform and opening-up, optimize the development environment for private enterprises, promote a stable foreign trade structure, and strengthen foreign investment attraction."

Although various economic indicators such as exports and domestic demand simultaneously point to potential crisis risks, the authorities claim that with an all-out effort to revive the economy, sufficient growth is achievable. Premier Li emphasized to Managing Director Georgieva, "We are confident in promoting the sustained and healthy development of the economy."

On the 29th of last month, Li Chang, Premier of the State Council of China (right), held talks with Gina Raimondo, U.S. Secretary of Commerce, who visited China, at the Great Hall of the People in Beijing. [Image source=AP Yonhap News]

However, in its recently released World Economic Outlook report, the IMF raised the global economic growth forecast for this year by 0.2 percentage points compared to the previous (April) forecast, upgrading projections for many countries worldwide, but left China's forecast unchanged at 5.2% for this year and 4.5% for next year.

Earlier, Xie Feng, the Chinese Ambassador to the United States, also dismissed the China economic crisis theory as "delusion" in a Washington Post (WP) op-ed on the 31st of last month. In his article titled "China's Economy Is Better Than You Think," he argued, "The idea that China could economically collapse while the United States continues to prosper is a complete delusion," and called for "the United States to lift technology export controls, investment restrictions, economic sanctions, and high tariffs against China."

He also emphasized, "China's GDP growth rate of 5.5% in the first half of this year outpaced the economic growth rates of major countries worldwide," highlighting that "the Chinese economy is showing continuous recovery and growth."

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