Policymakers confident in addressing risks facing China’s economy

By Hu Weijia Source:Global Times Published: 2019/3/6 21:18:41

Policymakers confident in addressing economic risks

Several Western media outlets in recent days focused on China's economic slowdown amid coverage of the ongoing annual two sessions being held in Beijing. They raised concerns about various economic risks faced by China, but we noticed most issues were mentioned by the Government Work Report delivered by Premier Li Keqiang to lawmakers on Tuesday. The report speaks more clearly than foreign media outlets about the seriousness of China's economic problems.

The Premier mentioned "risk" 24 times in this year's report. Five years ago, when the Chinese economy grew 7.3 percent year-on-year, "risk" was a rare word in the Government Work Report. The version released in March 2014 mentioned the word only four times. 

The Chinese government has a clear understanding of what really happens in the country. The Chinese economy has encountered unprecedented internal and external challenges since the 2008 financial crisis. These issues have drawn close attention from both the top leadership and the grass-roots.

The economy is having a hard time right now. The slowdown is a fact that can neither be ignored nor downplayed. The central government has formal and informal channels to gather real-time information that will reveal the truth about the economic situation.

Li said in this year's Government Work Report that the environment facing China's development is more complicated and severe this year, and the country must be fully prepared for a tough battle. The report mentions a series of problems ranging from local government debt to external risks. 

Having a clear understanding of the seriousness of the issues is the first step toward solving the problems. It seems the government has no intention to duck the questions faced by the Chinese economy.

In recent decades, China has accumulated valuable experience in dealing with thorny issues such as the debt of state-owned enterprises and external economic pressures. We believe the central government has overall control of the economic situation and does not lack stimulus policies to support the economy. GDP growth won't fall below the bottom line of 6 percent in 2019.

The Chinese government has launched a new round of stimulus measures, but a key issue is whether a lack of action at the local level will weaken the effect of such policies. 

The central government will adjust the intensity of its policies to maintain stable economic growth. Meanwhile, mechanisms are needed to ensure local officials are diligent and proactive in fully implementing the central government policies.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn
Newspaper headline: Policymakers confident in addressing economic risks


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