Chinese Prime Minister Li Qiang declared Tuesday that he was “fully confident” in his country’s ability to achieve its 2024 economic goals, citing possible new recovery measures.
The government hopes to achieve “around 5%” increase in GDP (gross domestic product) this year. But the post-Covid recovery is laborious and China experienced, in July-September, its lowest quarterly growth in a year and a half.
Authorities have announced measures to stimulate activity, including rate cuts and the easing of restrictions on home purchases. But many analysts have criticized the absence for the moment of a major quantified recovery plan.
Such an announcement could take place this week, after a meeting of the standing committee of the National People’s Congress, the supreme body of Parliament – subordinate to the ruling Communist Party.
“We are fully confident in achieving this year’s goals and the growth of China’s economy in the coming period,” Li Qiang said in Shanghai on Tuesday.
Conductor of economic policy as Prime Minister, he spoke at the opening ceremony of the China International Import Fair (CIIE), a major annual trade meeting which brings together several hundred companies foreign.
Li Qiang suggested that authorities had room to take further measures.
“We are facing downward pressure on the economy” but “there is still space for fiscal and monetary measures,” he said.
– “Destroy the rules” –
After a surge on the stock market a few weeks ago, fueled by the hope of a major recovery plan, optimism has fallen somewhat in the face of policies deemed not strong enough by the markets.
However, positive signals are being recorded. Factory activity thus increased last month, for the first time since April, according to official figures published last week.
In services, activity also accelerated in October, according to an independent index published Tuesday by the firm S&P Global and the Chinese economic media Caixin.
But the Chinese economy must face a serious pitfall: growing trade tensions with certain close trading partners, the European Union (EU) and the United States in the lead.
Li Qiang assured Tuesday, as often, that China would open up more to foreign investment. However, he warned against the rise of unilateralism and protectionism.
“From a global point of view… many problems have emerged that should not a priori be problems,” he said.
“In particular all kinds of dishonest behavior, which has caused a broken window effect that destroys the rules,” he added, referring to a theory according to which the apparent tolerance of incivility in public space gives rise to a increased non-compliance with the rules due to the feeling of impunity.
– French cognac –
China is particularly up against the customs surcharges imposed by the EU and the United States on electric vehicles manufactured in the Asian country. She considers these measures protectionist.
In response, Beijing notably threatens to overtax European brandies, of which French cognac represents 95%. Since mid-October, it has already required importers to deposit a deposit with Chinese customs.
France is targeted for supporting the imposition of European surcharges on Chinese vehicles.
China has also launched anti-dumping investigations targeting pork and dairy products imported from Europe, posing a threat to these sectors.
The French Minister for Foreign Trade, Sophie Primas, told AFP in Shanghai on Monday that negotiations remained “clearly open” with Beijing on cognac, without ruling out the option of a response from Paris.
Asked at the CIIE on Tuesday whether she thought the Asian giant was opening up more to foreign companies, she replied that “China is very open, at least that’s what she says.”
“We are very affected by the cognac industry,” she lamented while visiting the France pavilion.
“But the relations that we have had here tend to think that we will be able to continue to negotiate and we will be able to continue to have these relations, which are old relations” with China, estimated Ms. Primas.
