A public view shows the skyline of the Central Business District in Beijing on February 28, 2023.
Jade Gao Afp | Getty Images
The foundations of China’s economic recovery are not solid enough, a senior Communist Party official said on Saturday, warning of possible spillover effects from global economic problems.
Some countries must perform a balancing act while trying to stabilize the economy, prices and financial markets, said Han Wenxiu, deputy head of the party’s office for financial and economic affairs, adding that the global economy was at risk of stagflation.
The risks come as many developed countries are aggressively tightening monetary policies that have caused problems for banks as well as brought on foreign debt and financial market turmoil, he said at the government-run China Development Forum, without naming specific countries.
As a result, global supply chains are facing restructuring, he said.
“The basis of China’s economic recovery is not yet solid enough,” Han said.
New economic data shows that China’s economy is recovering from the COVID-19 slump after the government abandoned its zero-COVID strategy late last year.
China is confident of achieving its annual economic growth target of around 5%, Han said.
He said that the growth target has taken into account the need to expand employment and improve people’s livelihoods, as well as potential growth capacity and various difficulties.
China has neither inflation nor deflation in sight today, and has relatively much room to maneuver monetary policy, he said.
Han also said China will continue to expand market access and welcome foreign investment into the world’s second largest economy.
“China welcomes companies from all countries to come and invest and expects foreign companies to have a long-term view and expand extensively in the market,” Han said.