China calls for ‘arduous efforts’ to revitalize economy | business and economy

State planners’ comments come after the release of worse-than-expected economic data for November.

China’s economy is expected to pick up, but an unfavorable external environment and slowing momentum in the global economy will require “arduous efforts” to sustain growth recovery, said the country’s top state planner.

Friday’s comments came after the release of worse than expected economic data for November.

While the world’s second-largest economy is expected to benefit from the relaxation of China’s strict “zero-COVID” regime announced last week, the abrupt relaxation of rules poses the risk of larger outbreaks of the virus that could hit businesses and consumers .

Beyond COVID, policymakers must also navigate the economy through other headwinds, most notably continued weakness in the housing sector and slowing external demand.

“With the implementation of optimized COVID-19 prevention and control measures, while measures to stabilize the economy gradually take hold, China’s economic growth is expected to pick up further,” said a statement from a spokesman for the National Development and Reform Commission (NDRC).

“At the same time, we are aware that the economy is facing a more complex and difficult external environment and weaker growth momentum for the global economy,” the spokesman said.

“We must make great efforts to foster a sustainable economic recovery,” they added.

China will work to stabilize growth, jobs and prices while accelerating infrastructure project construction and expanding effective investment, the statement said.

As investment in the real estate sector fell sharply, the NDRC said the infrastructure and manufacturing sectors supported fixed investment growth as their capital accumulation accounted for 26.7 percent of China’s economic growth in the first three quarters.

By November, the NDRC said it had approved 106 major projects totaling about 1.5 trillion yuan (US$215.18 billion).

As the Lunar New Year holiday season approaches, the state planner has promised to release state pork reserves in a timely manner to keep prices stable.

To boost a COVID-hit economy, China has drawn up plans to expand domestic consumption and investment, state media reported on Wednesday.

The country will also help eastern Zhejiang Province build a pilot zone for the joint prosperity campaign and expand the scope of middle-income groups, the statement said.