Senior leaders of the Chinese Communist Party (CCP) recognized that their economy faces “difficulties” and they promised to support their real estate in crisis at a meeting this week, state media reported Tuesday.
“China still has to overcome some difficulties and challenges to further reactivate the economy,” top CCP leaders, including President Xi Jinping, admitted during a two-day conference dedicated to the Asian giant’s economy, the state news agency Xinhua said.
The leaders also committed to “respond to the reasonable financing needs of real estate companies”some of which are going through serious difficulties.
The annual closed-door meeting of the country’s top officials takes place at a time when the Chinese economy is experiencing a drop in consumer demand, significant youth unemployment and a debt crisis in its real estate sector.
The possible bankruptcy of a certain number of developers (Evergrande, Country Garden, among others) threatens the financial system but also social stability, because they run the risk of not being able to deliver apartments, already paid for, to their clients.
At the meeting, the senior leaders decided “priorities for economic work in 2024” and Xi gave a speech, Xinhua detailed.
However, according to an official present, quoted by Xinhua, “favorable conditions outweigh unfavorable factors in the development of China”.
“And the fundamental trend of economic recovery and the positive long-term outlook have not changed,” he added.
Rating agency Moody’s downgraded China’s credit rating outlook from “stable” to “negative” last week, citing the country’s debt and slowing growth.
Source: Gestion
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