President Xi Jinping has emphasized that China\u2019s economic recovery remains in a crucial phase. The country\u2019s second-largest economy saw a modest 4.9% growth in the third quarter, slightly below Beijing\u2019s target of five per cent, reflecting challenges from subdued domestic activity and difficulties in the property sector that are impeding the post-pandemic rebound.<\/p>\n
Xi stressed the importance of expediting the establishment a modern industrial system, boosting domestic demand, and managing and averting risks. He also underscored the necessity of enhancing self-reliance in critical science and technology sectors while hastening the implementation of a new development framework. In the third quarter, China\u2019s economy grew by a modest 4.9%, just below Beijing\u2019s low target of 5 per cent.<\/p>\n
Despite the removal of strict containment measures at the close of 2022, authorities have encountered challenges in sustaining a recovery from the COVID-19 pandemic\u2019s impact. Officials reported that exports experienced growth in November, marking the first increase in seven months. However, it\u2019s important to note that this improvement is measured against a low baseline from the previous year when the effects of COVID-19 policies were most pronounced. Chinese exports, traditionally a significant contributor to growth, had been on a declining trend since October of the preceding year, with a brief upturn in March and April. Additionally, an unexpected decline in imports for November underscored subdued consumer activity within the domestic market.<\/p>\n
Moody\u2019s downgraded China\u2019s credit rating outlook from stable to negative on Tuesday, citing extensive risks to the country\u2019s fiscal, economic, and institutional strength. In response, the finance ministry in Beijing expressed disappointment with Moody\u2019s decision, stating that concerns regarding China\u2019s economy were deemed unnecessary. Concerns have intensified due to challenges in the property sector, which is another conventional driver of economic growth.<\/p>\n
China\u2019s expansive real estate sector is currently entangled in a severe debt crisis, with some of the country\u2019s largest developers burdened by debts amounting to hundreds of billions of dollars, putting them at risk of insolvency. This situation has raised alarm among authorities as concerns about debt continue to erode buyer confidence, leading to a sharp decline in home prices. Importantly, the crisis poses a significant threat of contagion to other sectors of the economy.<\/p>\n
Construction and real estate collectively contribute to approximately a quarter of China\u2019s gross domestic product (GDP), underscoring the sector\u2019s crucial role in the overall economic landscape. On Thursday, Ting Lu, the chief China economist at the Japanese bank Nomura, emphasized that the challenges in the property market remain \u201cthe single largest drag affecting China\u2019s economy.\u201d The deepening troubles in real estate impact the sector directly and have broader implications for the country\u2019s economic health, making it a pivotal issue demanding attention and resolution.<\/p>\n","protected":false},"excerpt":{"rendered":"
China\u2019s economic recovery, under President Xi Jinping\u2019s focus, faces challenges with a 4.9% Q3 growth, slightly below the 5% target, hindered by subdued domestic activity and property sector issues. <\/p>\n","protected":false},"author":367,"featured_media":4686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[443,175,3106,1086,3107,150,1806,314,1830,3108],"class_list":["post-4667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-china","tag-beijing","tag-china","tag-china-exports","tag-chinese-president-xi-jinping","tag-construction-and-real-estate","tag-covid-19","tag-gdp","tag-moodys","tag-nomura","tag-ting-lu"],"reading_time":"3 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/4667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/users\/367"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/comments?post=4667"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/posts\/4667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media\/4686"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/media?parent=4667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/categories?post=4667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/asia\/wp-json\/wp\/v2\/tags?post=4667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}