Expanding domestic demand and opening up, Chinese economy off to a good start in 2023

BEIJING

,

February 16, 2023

/PRNewswire/ — This was shown by encouraging indicators ranging from tourism and cinema receipts to the Purchasing Managers’ Index (PMI).

of China

Economy got off to a good start in 2023.

As Chinese President Xi Jinping emphasized at the annual Central Economic Work Conference last December, China’s economic work in 2023 will focus on expanding domestic demand, accelerating the construction of a modern industrial system, and working tirelessly on both public sector development and economic development focus on supporting the non-public sector, boosting foreign investment and mitigating major economic and financial risks.

Qiushi Journal, a flagship magazine of the Communist Party of

China

(CPC) The Central Committee on Thursday released Xi’s article titled “Several Important Issues in Current Economic Work,” which is part of Xi’s important speech delivered at the annual Central Economic Work Conference

December 15, 2022

.

Expansion of domestic demand

The emphasis on insufficient demand is now the main contradiction for economic operation. Xi pointed out in the article that efforts should be made to boost domestic demand by prioritizing recovery and expansion of consumption and encouraging more private investment through government investment and policy stimulus.

The article also called for stabilizing exports to developed countries and expanding exports to emerging markets.

The consumption boom during the Spring Festival holiday reflects the potential of the domestic market and the dynamism of the Chinese economy.

During the week-long holiday, sales of

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consumption-related sectors rose 12.2 percent from last year’s Spring Festival holiday, which ran from

January 31 to February 6

showed data from the State Tax Administration.

According to the country’s Ministry of Culture and Tourism, around 308 million domestic trips were taken during this year’s Spring Festival holiday, up 23.1 percent year-on-year. Domestic tourism revenue generated during the week-long holiday added up

375.8 billion yuan

(around

$55.52 billion

), 30 percent more than in the previous year.

The coffers of the country raked in

6.76 billion yuan

(around

1 billion dollars

), the second-highest gross figure for annual leave, the China Film Administration said.

Opening at the highest level

The article urged efforts to further advance high-level reform and opening-up and capitalize on the strengths of

of China

huge market to attract global resources and factors of production

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strong domestic economy.

The Chinese President emphasized attracting and utilizing foreign capital by expanding market access and promoting a world-class business environment to grant national treatment to foreign-funded enterprises and improve services for foreign-funded enterprises.

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Foreign trade companies have seen orders surge in the early days of 2023 as more robust COVID-19 response measures were in place. The PMI for

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Manufacturing came in at 50.1 in January, returning to growth after three consecutive months of contraction, while the new orders index rose seven percentage points to 50.9 percent, data from the National Bureau of Statistics showed.

According to a recent report by the Asian Development Bank (ADB)

China

remains the top destination for global foreign direct investment (FDI).

Asia

. China’s Ministry of Commerce said actual consumption FDI in mainland China has risen 6.3 percent annually

1.23 trillion yuan

in 2022. In US dollar terms, FDI inflows rose 8 percent year-over-year

$189.13 billion

.

In its latest update of the World Economic Outlook report, the International Monetary Fund (IMF) raised its forecast for

of China

Economic growth in 2023 to 5.2 percent from a previous forecast of 4.4 percent. Investment banks, including Morgan Stanley and Goldman Sachs, have also revised their growth forecasts for the world’s second largest economy.

https://news.cgtn.com/news/2023-02-15/Xi-Jinping-s-article-on-economic-work-to-be-published-1hrBXdN3cSA/index.html

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SOURCE CGTN