2024-01-01 00:05:47
Chinese President Xi Jinping has announced a policy to strengthen economic momentum and create jobs. He said 2023 was a difficult year for some businesses and people, and he acknowledged that China was facing headwinds.
President Xi is celebrating the new year’smessageWhile touting China’s achievements in 2023, he noted that “some businesses were in a difficult situation” and that “some people had difficulty finding work and meeting their basic needs.”
In a televised speech on December 31, Mr. Xi announced that the country would “work hard to consolidate the momentum of economic recovery and achieve steady and long-term economic development.” The government’s goal is “to provide the people with a better life,” he said, citing “the upbringing and education of our children, the employment and success of our young people, and the medical care and care of our elderly.”
Mr. Xi Jinping giving a New Year’s speech (Beijing, December 31, 2023)
Photographer: Pedro Pardo/AFP/Getty Images
China enters a pivotal new year as policymakers seek to boost growth, stabilize a crisis-hit real estate market and prevent the economy from sliding into deflation.
The Chinese government is expected to return to a growth target of around 5% in 2024, but the higher comparison numbers will make it more difficult to achieve.
China’s unclear policy decisions have hurt investor confidence, and rising interest rates overseas have spurred capital outflows. Due to recent new gaming regulations, the market capitalization of the three major gaming companies has temporarily lost a total of $80 billion (approximately 11.28 trillion yen). The amount of Chinese stock purchases by foreign investors hit a record low on an annual basis.
There have been increasing signs of economic weakness recently, with the Manufacturing Purchasing Managers’ Index (PMI) released on December 31 by the National Bureau of Statistics at 49, down from 49.4 in November. It was the lowest level in six months. Pressure on authorities to provide economic stimulus is likely to increase.
On December 31, President Xi boasted of China’s “manufacturing capabilities,” citing projects including the domestically produced C919 passenger plane, domestically produced large cruise ships, space development, manned submersibles, and electric vehicles.
The new year brings new geopolitical risks with elections in the United States and Taiwan. The Taiwan presidential election to be held on January 13th will be a closely watched election that will determine how Taiwan, with a population of over 23 million people, will respond to China’s moves.
Mr. Xi mentioned Taiwan in his speech. “Reunification of the motherland is a historical necessity, and compatriots on both sides of the Taiwan Strait should join hands and share the great glory of national rejuvenation,” he said.
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