Actions must be taken to boost confidence as recovery on healthy upward trajectory

Despite external pressure and internal difficulties, China’s economy rebounded with a growth rate of 5.2 percent last year, surpassing the official annual target of around 5 percent, according to the National Bureau of Statistics on Wednesday.

This has been achieved even without the government resorting to “massive stimulus”, which reflects the country’s “good and solid fundamentals in its long-term development”, as Premier Li Qiang said at the World Economic Forum in the Swiss ski resort of Davos on Tuesday.

The government has obviously taken note of the need to shore up the market’s confidence in the long-term growth prospects of the Chinese economy. To better boost the growth of the real economy, the central leadership stressed the need for the high-quality development of China’s financial sector, vowing to accelerate the building of a modern financial system on Tuesday.

That China will make efforts to build itself into a financial powerhouse, and take measures to fend off financial risks, especially systemic risks, and will further strengthen the interconnectivity between domestic and overseas financial markets speaks volumes of the central authorities’ resolve to steer the country’s financial market out of its current woes onto a healthy path of sustainable development.

The growth of the national economy last year is hard-won and should be objectively observed. In 2023, the world economy was in a downturn, the international landscape was evolving fast, geopolitical conflicts occurred frequently, and the external environment was more complex, severe and uncertain than expected. There were many domestic cyclical and structural contradictions as well. Not to mention a series of natural disasters.

Generally speaking, the annual data for China’s economy released by the NBS indicate, as it said, that the foundation of “stability” is more solid, the motivation for “advance” is more sufficient, and the characteristics of “quality” are becoming more obvious.

China’s economy has withstood the external pressure, overcome the internal difficulties, and continued to develop while overcoming challenges. It has achieved a relatively high growth rate, low prices, stable employment, and a basically balanced international balance of payments. The main goals of economic and social development have been achieved, and high-quality development advanced.

But the national economic and social development tasks will still be arduous this year, and many difficulties and challenges will have to be overcome. The country must persist in seeking high-quality development while maintaining stability and promoting stability through the advancement of economic upgrading. Macro-control efforts should be strengthened so as to effectively enhance the country’s economic vitality, and prevent and resolve risks with foresight.

In the process, authorities at various levels should take concrete measures to try and raise expectations, so as to further consolidate and enhance the positive trend of economic recovery.

Editorial, China Daily