China's economy has bright prospects for further growth: NDRC official
Published: Dec 06, 2023 02:11 PM
Lianyungang port in East China's Jiangsu Province. Photo:VCG

Lianyungang port in East China's Jiangsu Province. Photo:VCG

Chinese economy remains on the trajectory of an upswing recovery, after overcoming difficulties as well as challenges during the past months, and it has a bright prospect for further development, the National Development and Reform Commission (NDRC) said on Wednesday.

China remains as the single largest engine of global growth and will contribute about one-third to the world’s economic growth this year, the NDRC, China’s top economic planner said.

“We are confident and capable of achieving long-term stable development, continuously bringing new impetus and opportunities to the world through China's accelerated development,” said a spokesperson from China's National Development and Reform Commission (NDRC).

The comments come as rising discussions over the economic outlook for the world’s second-largest economy, and after China on Tuesday pushed back against a decision by US ratings agency Moody's to cut its credit outlook from stable to negative.

Looking ahead, the NDRC noted that China's economic development is still endowed with many favorable conditions and supporting factors.

For instance, the commission official listed several advantages including China’s enormous market demand, a complete industrial system with globally complete industrial system, advanced infrastructure, and enhanced supply chain will continue to contribute to economic resilience and digital transformation.

Moreover, the momentum from the reform and opening-up and a basket of enriched policy tools for macroeconomic policy will provide ample space for addressing the challenges and risks faced by the economy.

In a report on Tuesday, Moody's Investors Service said it had reaffirmed China's A1 long-term local and foreign-currency issuer ratings, but it also cut its outlook for China's government credit ratings to negative from stable, noting that China's fiscal support for local governments and the slumping property sector poses risks to its fiscal, economic and institutional strength.

An official from the Chinese Ministry of Finance (MOF) offered point-by-point rebuttals for the problems raised by Moody's, stressing that China's economy remains resilient, and it is capable of deepening reforms to tackle all the challenges. The ministry noted that outside concerns over China's growth prospects are unnecessary.

In a separate statement, an official from the bureau of private economic development of the NDRC said that market expectations and the confidence of the private enterprises have kept increasing in recent months. Together with relevant departments and localities, the NDRC is actively promoting the implementation of related supporting policies for the private sector.

In the first three quarters this year, the number of newly established private enterprises grew by 15.3 percent compared with the same period last year. Official surveys indicate that the proportion of optimistic private enterprises regarding macroeconomics, operating income, market demand and foreign trade prospects has increased, leading to a further rise in market expectations an confidence of the private enterprises.

Global Times