China’s Xi touts ‘manufacturing prowess’ as economy struggles

While touting China’s achievements in his New Year’s message, the leader noted “some enterprises had a tough time” and “some people had difficulty finding jobs and meeting basic needs” in the past year.

“We will consolidate and strengthen the momentum of economic recovery, and work to achieve steady and long-term economic development,” Xi said in a televised address on Sunday.

The government’s goal is about “delivering a better life for the people — our children should be well taken care of and receive good education, our young people should have the opportunities to pursue their career and succeed, and our elderly people should have adequate access to medical services and elderly care,” he said.

Improving people’s well-being has been a key part of the social contact the Communist Party has relied on for its ruling. The new year sees China entering a pivotal period as policymakers try to boost growth, stabilize a crisis in the property market and prevent the world’s second-largest economy from sleepwalking into deflation.

Beijing is expected to target a growth goal of around 5% again in 2024, although achieving that will be harder due to a higher base.

Investor confidence has plummeted as concerns over Beijing’s opaque policymaking persisted and higher interest rates overseas spurred capital outflows. A recent crackdown on the gaming industry sparked a $80 billion meltdown, while foreign investors recorded their smallest-ever annual purchases of Chinese stocks.

Signs of weakness in the economy have increased recently with factory activity shrinking in December to the lowest level in six months, likely adding pressure on policymakers to act urgently to inject impetus to the economy.

Xi on…