Chinese Premier Li Qiang expressed optimism about the government’s ability to drive an economic recovery while subtly critiquing the trade policies of the U.S. and European Union. Speaking at the opening of the China International Import Expo in Shanghai on Tuesday, Li stated, “The Chinese government has the ability to drive sustained economic improvement.” He emphasized that officials possess “ample space for fiscal policy and monetary policy” and reaffirmed the nation’s goal of achieving around 5% economic growth.
Li’s comments highlight the government’s ongoing belief that it can meet its growth targets despite facing challenges such as weak consumer confidence, deflationary pressures, and difficulties in the property market. Notably, a private index measuring service activity showed growth at the fastest pace since July, indicating a potential rebound in consumer demand.
Investors are keenly awaiting more details regarding fiscal support following the introduction of the most significant stimulus package since the pandemic, which was announced in September. These measures, including interest rate cuts and initiatives aimed at revitalizing the property and stock markets, are expected to bolster demand for imports.
In his speech, Li also referenced “various acts of dishonesty” in trade without specifying details, seemingly aimed at critiquing the trade strategies employed by the U.S. and EU. On Monday, China lodged a formal complaint with the World Trade Organization regarding the European Union’s tariffs on Chinese electric vehicle imports, following similar actions by the U.S. Washington has also sought to limit China’s access to advanced semiconductor technology, citing national security concerns.
As Americans prepare to vote on Tuesday, there is a possibility that Donald Trump may be reelected, a prospect that could lead to the imposition of 60% tariffs on Chinese goods—a move likely to trigger retaliation from Beijing and negatively impact U.S. exports.
During the CIIE, Li met with a group of business executives, conveying a message of strength and opportunity in the Chinese economy. Jerry Felton, CEO of Melaleuca Inc., a vitamin and supplement company based in Idaho, remarked, “His main message was China is strong, the economy is growing, and there are all kinds of opportunities.” However, Felton noted that some CEOs also expressed concerns regarding the challenges posed by the global economy.
The China International Import Expo, launched in 2018 to enhance trade relations, has been used by the government as a platform to reiterate its commitment to economic openness. This year, Malaysian Prime Minister Anwar Ibrahim was among the foreign leaders attending the expo’s opening.
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