Nandini Roy Choudhury, writer
Brief news
- Chinese officials emphasize prioritizing internal affairs amidst intensifying trade tensions.
- Three focus areas highlighted: steady growth in the real estate market, advancement of emerging and future industries, and expansion of domestic demand.
- China acknowledges challenges in the economy and calls for more robust macro policies to address obstacles.
Detailed news
BEIJING— In the context of intensifying trade tensions, senior Chinese officials underscored on Friday that the nation would prioritize its internal affairs.
Han Wenxiu, deputy director of the Chinese Communist Party’s central committee office for financial and economic affairs, stated to reporters in Mandarin, “We can guarantee that the national economy will continue to advance smoothly and steadily as long as we perform our own tasks well.” This statement was translated by CNBC.
He specified three focus areas: the real estate market’s steady and robust growth, the rapid advancement of “emerging and future industries,” and the expansion of domestic demand, particularly consumption.
Han was responding to a query regarding the manner in which China would facilitate development in the context of heightened trade tensions. He employed a phrase that has been attributed to Chinese President Xi Jinping, who has in recent years encouraged the nation to “do your own thing well” and concentrate on its own affairs.
A press conference was held subsequent to the conclusion of the Third Plenum, a high-level meeting policy that concluded on Thursday. The final resolution has not yet been released, but it is anticipated to be released in the near future. The initial communique advocated for the enhancement of domestic technology and the attainment of the full-year economic objective.
Under former U.S. President Donald Trump, trade tensions between the U.S. and China have intensified. Trump is currently campaigning for reelection this autumn and has issued a threat to impose 60% tariffs on Chinese products if he is elected. This year, the tariffs on Chinese electric vehicles were raised to 100% by the Biden administration.
Additionally, the European Union declared this month that it would increase tariffs on electric vehicles manufactured in China.
The Third Plenum readout and the remarks of Chinese officials Friday did not specify any particular countries or regions, but he discussed geopolitical tensions in general terms, including what Han referred to as a “temporary” decrease in foreign direct investment.
Mu Hong, deputy director of the Party’s central committee office for “Comprehensively Deepening Reform,” informed reporters on Friday that while external uncertainties have increased, they will not affect China’s commitment to and confidence in the continued deepening of reform and further opening up.
Over the past four decades, China has employed the term “reform and opening up” to denote policies that have progressively liberalized the economy to private and foreign capital, in addition to other modifications to the communist state.
China’s expansion has experienced a decline following decades of robust economic development. The second quarter’s GDP growth fell short of expectations, prompting some analysts to advocate for additional stimulus in order to achieve the country’s full-year growth objective of approximately 5%.
The “systemic impact” of real estate
Although exports have continued to serve as a development catalyst, the economy has been adversely affected by a real estate downturn and subpar consumption. The drag from those sectors has not yet been fully mitigated by Beijing’s longer-term efforts to develop advanced technology.
On Friday, Han, who serves as the director of the Office of the Central Rural Work Leading Group, recognized the “systemic impact” of real estate on the Chinese economy. He stated that China would persist in its efforts to assimilate existing housing inventory, optimize new construction, and deliver pre-sold homes.
Residential sales decreased by more than 20% from the previous year, and investment in real estate decreased by 10.1% in the first half of the year.
In a separate statement on Friday, Han acknowledged that the economy was confronted with certain obstacles and advocated for “more robust, more effective macro policy.” He did not provide a specific timeframe.
Han provided an introductory overview of the plenum’s resolution, which included proposals to enhance the macroeconomic governance system and further integrate the development of urban and rural areas.
At the conclusion of his opening remarks, he stated, “It is imperative that we guarantee the resolution’s implementation and efficacy.”
Source : CNBC News
