China’s Xi urges efforts to achieve annual economic target

BEIJING – Chinese President Xi Jinping on Sept 12 urged the authorities to strive to achieve the country’s annual economic and social development goals, state media reported, amid expectations that more steps are needed to bolster a flagging economic recovery.

Speaking at a symposium in the north-western city of Lanzhou, Mr Xi emphasised the need for all regions to “do a good job” in economic work towards the end of third quarter and the fourth quarter, state broadcaster CCTV reported.

He called for employment to be given priority and expanded in developing industries.

Mr Xi also pledged to stamp out all forms of local protectionism, deepen reform of state-owned firms and implement policies to support the private sector.

Faltering Chinese economic activity has prompted global brokerages to scale back their 2024 growth forecasts to below the official target of around 5 per cent.

“The growth gap from the official target could widen to 0.4 to 0.5 per cent. This will likely prompt the authorities to release a stimulus package,” economists from ANZ said in a note on Sept 13.

Despite better-than-expected export growth in August, official consumer and factory gate prices data showed that the country still needed to fight against deflationary pressures.

China is due to release August industrial output, retail sales and unemployment data on Sept 14.

There is growing pressure on the Chinese authorities to roll out more measures amid a prolonged housing downturn, persistent joblessness, debt woes and rising trade tensions.

China has room to lower the amount of cash that banks must set aside as reserves, a central bank official said last week. REUTERS