China: The country’s economy faces new difficulties and challenges

Senior Chinese officials, including President Xi Jinping, confirmed that the country’s economy faces new difficulties and challenges during a meeting to investigate the economic situation.

The meeting noted that the current economic process faces new difficulties and challenges, owing mainly to insufficient domestic demand, operating difficulties for some companies, high risks and hidden risks in key sectors, and a complex and acute external environment, according to the public broadcaster CCTV.

The ruling Communist Party’s political office is holding a meeting in late July to review the country’s economic situation before the summer break in August.
The 2023 meeting comes days after economic indicators were published that fell short of expectations.

The Monday meeting acknowledged the need for China to introduce specific and effective macroeconomic regulatory law and strengthen counter-cyclical regulation and policy precautions, calling for efforts to increase domestic demand and adjust and improve real estate sector policies in an appropriate manner, CCTV said.