In order to stabilize the country’s bleeding economy and avoid negative growth in the April-June quarter, Chinese Premier Li Keqiang was brought back to the forefront to revive the economy.
China’s economy is reeling from a strict zero COVID policy and President Xi Jinping’s crackdown on the real estate and tech sectors.
As China’s economy contracted by 6.8% in real terms in the January-March 2020 quarter, Xi Jinping had no choice but to appeal to Premier Li to end the crisis. economic repression he had largely brushed aside throughout his decade in power, Nikkei Asia reported.
Xi has no choice but to appeal to Premier Li to stop the economic hemorrhage. Xi has largely sidelined Li throughout his decade in power, but perhaps the two have now reached some sort of compromise.
Last week, China held a massive video conference on stabilizing the economy in which Premier Li Keqiang addressed around 100,000 senior officials in more than 2,800 municipalities across the country, reports said. official media.
According to state media, “the difficulties in March, and since April in particular, are in some respects and to some extent greater than those encountered in 2020 when the COVID-19 epidemic hit the country,” Ms. Li at the conference.
He further urged officials to do more work to ensure “reasonable economic growth”, pointing to the April-June quarter.
According to Nikkei Asia reports, China, in a bid to achieve a full-speed recovery in July-September, has planned to mobilize all central and local government organizations and state-owned enterprises, as well as advance the implementation implementation of infrastructure development projects. , including the resumption of construction work on nuclear power plants.
The National Bureau of Statistics also reported on Tuesday that the Purchasing Managers’ Index, or PMI, for China’s manufacturing sector fell below the boom or bust threshold of 50 for the third consecutive month in May.
China, which once boasted a strong defense against the COVID-19 pandemic, is now being hit hard by the virus’ return and the sharp rise in the unemployment rate.
The country’s export growth fell sharply to 3.9% in April as the draconian COVID-19 restrictions the country imposed in late March in economic hub Shanghai and other cities begin to show their effect on the economy. .
China’s overall trade rose 2.1% in April, slowing significantly from 7.5% in March, while export growth slowed significantly from 14.7% in March to 3 .9% in April.
Shanghai lifted its two-month lockdown on Wednesday, but the zero COVID policy remains in effect, affecting various parts of the country.