China trade economy File photo: VCG

China's economy will be sound in the long run and there is no so-called deflation in its economy. The "bearish China" argument is doomed to fail, officials from four ministries said on Wednesday at a press conference interpreting the economic situation and policies.

Officials emphasized that external voices talking down and attempting to undermine China's economy have never been proved true in the past and are destined not to be in the present or future.

Analysts said that the response was helpful in improving the perception of foreign capital on China's economic outlook and lifting confidence in the Chinese economy.

Based on the effects of policy measures, the economic recovery in the fourth quarter is expected to be more significant than in the third quarter and will continue into 2024, Tian Yun, a veteran economist based in Beijing, told the Global Times on Wednesday.

Officials at the press conference stressed that the bigger challenges China faces, the more resilience is shown in the Chinese economy.

A review of history shows that even in the face of the 1998 Asian financial crisis and the 2008 international financial tsunami, the Chinese economy not only stood firm, but also grew stronger and stronger in response, Cong Liang, deputy head of the National Development and Reform Commission (NDRC), the country's top economic planner, said on Wednesday at the press conference.

"With the cumulative effect of the current policies and newly introduced policies, and the increasing number of positive factors, we have every reason to believe that the Chinese economy will pick up and improve in the long run," said Cong.

Premier Li Qiang said at a State Council meeting on Wednesday that governments at all levels should work hard to ensure the effective implementation of the policies and measures that were already introduced.

Li stressed that relevant departments should accelerate the introduction of relevant policies based on the planning of next year's economic work, and further consolidate the momentum of a sustained economic recovery.

"At present, there are a lot of internal and external voices bearing down on China and talking about China. What I want to say is that such arguments have never been realized in the past, and they will not be realized now or in the future," said Cong.

The NDRC official said that since August, in the face of such difficult challenges as the lack of momentum for the global economic recovery and overlapping cyclical and structural problems at home, Chinese ministries have improved and released policies to continue to consolidate the momentum of the economic recovery.

Cong noted that there is no so-called deflation in China's economy. In recent years, the inflation rate in some countries has reached more than 9 percent, but China's overall price level has remained relatively stable. 

Since the beginning of 2023, prices have been running at a low level. According to the comprehensive price level, demand recovery, economic growth, money supply and other factors, so-called deflation does not exist in the Chinese economy, and deflation will not occur at a later stage.

Major economic data in August showed that China's economy bottomed out in July with significant signs of improvement, including a continued recovery in consumption and the improved relationship between supply and demand. 

China's automobile exports for the first time were No.1 in the world in 2023, Tao Qing, an official of the Ministry of Industry and Information Technology, said on Wednesday at the press conference. 

"The equipment manufacturing industry is the main force to promote industrial growth, especially the development momentum of the high-end manufacturing industry. The competitiveness of high-end equipment with high value-added will inject new impetus into exports," Tao said.

An official from China's central bank also said at the conference that the exchange rate of the yuan against the US dollar is important, but it is not the sole indicator to reflect the yuan's value.

The yuan has outperformed other non-dollar currencies, which reflected stable expectations of the Chinese economy.

It is expected that macro policies will continue to take effect to stabilize the property market and help residential consumption rebound, areas that have vast potential to boost the economy, according to Tian.