China is relying on a zero Covid strategy and a rapid economic recovery. But that is just a long time coming. However, the country does not want to give up its growth targets.
Due to the weaker economic recovery after the corona pandemic in China, state and party leader Xi Jinping has called for compliance with the growth targets for this year.
The central bank warned of new uncertainties and signaled an easing of the credit policy in order to stimulate the second largest economy.
During a visit to the countryside near Chengde north of Beijing, Xi Jinping also warned, according to the party organ “People’s Daily” on Thursday, the tasks for economic and social development as well as the official target for growth this year of “more than six percent” to meet.
The worst outbreak of the virus in a year with the Delta variant and more than 1000 infections has created new uncertainties, although the spread has been brought under control. Central bank chief Yi Gang warned of an “unsteady and uneven” recovery in the domestic economy and a “more serious and complicated external environment”.
He therefore sees the need for stable credit growth. In the second half of this year and the first half of next year, credit support to the economy should be stepped up, Yi Gang said at a meeting with representatives of major banks. Small and medium-sized companies in particular should benefit from this.
The central bank governor said that more credit should flow into science and technology, green development, the self-employed and agricultural companies. After a growth of 2.3 percent last year, China’s economy had grown strongly by 12.7 percent in the first half of the year due to the low comparative basis in the previous year, but has been losing momentum since July.
China’s government is pursuing a zero-Covid strategy and responding to smaller outbreaks with mass testing, contact tracing, quarantine and the interruption of transport connections. The strict measures recently dampened consumption, although life has largely returned to normal for a year.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
