(Nov 5): Chinese Premier Li Qiang expressed confidence that his government can pull off an economic recovery, while also taking an apparent shot at the US and European Union (EU) over trade.
“The Chinese government has the ability to drive sustained economic improvement,” Li said in a speech on Tuesday at the opening of the China International Import Expo (CIIE) in Shanghai.
He added that officials had “ample space for fiscal policy and monetary policy”, and reiterated that China would hit its economic growth target of around 5%.
Li’s remarks on the economy underscore the Chinese government’s repeated optimism that the country can reach the expansion target in the face of weak consumer sentiment, deflationary pressures and property market woes.
Recent data seems to be backing them up. On Tuesday, a private gauge of services activity last month expanded at the fastest pace since July, a sign that consumer demand may be on the mend after Beijing moved to shore up growth with a barrage of stimulus measures.
Investors are awaiting details of fiscal support after the Chinese government unveiled that stimulus package. That backing could come at a meeting of the top legislative body this week.
China’s benchmark CSI 300 Index closed up 2.5%, the biggest gain in more than two weeks. The Hang Seng China Enterprises Index advanced 2.6%.
Li also appeared to poke at the US and EU for their trade policies, mentioning “various acts of dishonesty”, without going into specifics.
On Monday, China lodged a complaint with the World Trade Organization over the EU’s levies on Chinese electric vehicle (EV) imports. The US has enacted its own EV tariffs, and Washington has also worked to cut China’s access to advanced chip tech, citing military concerns.
Speaking after Li, Prime Minister Datuk Seri Anwar Ibrahim commended China for its handling of trade in the face of “obscure, condescending and unfair trading practices” by nations he didn’t name.
The trip by Anwar comes as Malaysia draws closer to Beijing, with Anwar openly criticising the US over its support of Israel. Last month, Malaysia, Indonesia, Vietnam and Thailand became partner nations to the BRICS bloc that China and Russia hope becomes a counterweight to the US-led West.
The remarks by Li and Anwar come just before Americans head to the polls, raising the possibility of a second term for Donald Trump. He has threatened to impose 60% tariffs on Chinese products, a move would nearly certainly prompt retaliation from Beijing.
On Monday, Li met with a group of company executives attending the CIIE.
“His main message was China is strong, the economy is growing, and there are all kinds of opportunities,” said Jerry Felton, the chief executive officer of Idaho-based vitamin and supplement maker Melaleuca Inc.
Some CEOs also spoke about the challenges, especially with the global economy, said Felton, who attended the meeting.
Some other comments from panel discussions at a forum that runs parallel to the CIIE:
- Craig Allen, the president of the US-China Business Council, called on Beijing to make structural changes to boost domestic demand, especially from households. He added: “A lack of trade reciprocity on China's side, China’s aggressive industrial policies, and a lack of a level playing field in the world’s second-largest market challenge the future of the international trading system.”
- Jean-Paul Agon, the chairman of L’Oreal SA, lauded the recent government moves to boost domestic demand. “Fundamental stimulus is key to elevating consumer sentiment, and this significant support will be instrumental in upgrading consumption and driving high-quality development,” he said.
Read also:
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Anwar: China’s principle of shared future inspires Malaysia to participate in BRICS
Anwar invites China’s Jiangsu Longda to expand biz into Malaysia
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