China shows confidence in recovery, despite difficulties

China shows confidence in recovery despite difficulties

Chinese economic leaders responded to the press this Wednesday March 6 in Beijing, as part of the annual session of Parliament. During this exercise, decision-makers sought to be reassuring regarding the recovery, despite the headwinds hitting the world’s second-largest economy.

3 mins

With our correspondent in Beijing, Stéphane Lagarde

In Chinaas often in this kind of exercise, questions are sent in advance. Wearing dark suits, the six men at the helm of the world’s second largest economy are there to respond to the journalists, who are numerous in the press center room for Chinese parliamentary sessions. But also to reassure.

Favorable conditions for China’s development outweigh unfavorable factors “Zheng Shanjie explained. For the head of the Development and Reform Commission, the trend is towards strengthening the recovery. But the latter recognizes that the second largest economy on the planet is confronted to “ many difficulties »a rare confession, in a country where any criticism of the economy is censored.

These challenges facing the Chinese economy were already in the Chinese government’s work report presented by Premier Li Qiang on Tuesday to parliamentarians. They are also present this Wednesday at the Minister of Finance and Trade.

In front of the forest of microphones and cameras, Wang Wentao discusses the weakness of external demand, geopolitical conflicts and the rise of protectionism: “ The foreign trade situation this year is still very serious. Several international organizations have predicted declining global growth rates in 2024 and there is pressure linked to the drop in external demand. On the other hand, despite the difficulties, we have also seen positive signs. »

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Take-back of freezers and washing machines

It’s difficult not to moderate one’s enthusiasm, given the difficulties facing the Chinese economy. Officials, however, highlight the positive signs recorded since the start of the year, with exports up 10%, in particular. This surge will probably be moderated by a drop in March, but which shows, according to the speakers, the strength of the “three new” Chinese exports, namely electric vehicles, lithium-ion batteries and solar panels.

Other ” sign of improving economic situation », electricity production increased by 11.7% in January and February. Finally, to stimulate household consumption which represents 82.5% of Chinese growth, the planner announced a government initiative aimed at the recovery of cars and household appliances.

At the end of last year, China had more than 336 million cars and the number of refrigerators, washing machines, air conditioners and other household appliances exceeded 3 billion units. », recalled Zheng Shanjie, during the 2 hours 50 minutes of conference, evoking a potential market of several billion yuan.

“Jump” towards 5% and “tighten the belt”

Achieve at the 5% growth set by the Chinese Prime Minister will require efforts. The person concerned even speaks of a “ leap » to be carried out for the national economy. The Minister of Finance, Lan Foan, for his part, used the expression used by the Prime Minister the day before, evoking a State which will have to “ tighten your seatbelt ”, but which will strengthen its investments in sectors such as science and technology.

The new chairman of the China Securities Regulatory Commission, for his part, invited the markets to have a “ sense of responsibility “. Wu Qing also promises to crack down on “ strictly » market manipulators, while declaring that the protection of small investors was a “ fundamental task “.

Read alsoChina is counting on growth of 5% in 2024: enough to get out of the crisis?

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