How will the Chinese economy pan out toward year end and early 2023 — that’s the foremost concern for many among the public. A few days ago, Premier Li Keqiang presided over a State Council executive meeting. In the meeting, he called for efforts to ensure full implementation of a package of policies and follow-up measures to stabilize the economy and consolidate the foundation of economic recovery. Experts and scholars have expressed their views on how to bring the economy back on a normal track. While their suggestions differ in emphasis, there is one important common ground — to deepen reform and open up wider. This is not only a valuable lesson China has learned from history, but it also aligns with the practical demands of today. China’s high-quality economic growth inevitably requires deepening reform and opening up. Jiang Zemin, who represents the core of the third-generation central government leadership of the Communist Party of China (CPC), passed away on Nov. 30, 2022. While mourning, people could not help looking back into the past and thinking about the present. They felt strongly that the reform and opening-up, which had sparked a surge in China’s economy, was still vital to expanding the economy in a stable manner.
The Chinese economy faces larger-than-expected downward pressure in 2022 due to various complex factors inside and outside China. Keeping the economy within a reasonable growth range has become a top priority. With the implementation of a package of policies and follow-up measures to stabilize the economy, China was able to reverse the downward trend which began in the second quarter. Its GDP grew by 3.9% in the third quarter. However, China’s economic recovery momentum faces the risk of stalling, and the foundation for recovery still needs to be consolidated. The economic index fell sharply in October compared to September 2022. Recent data, including the Purchasing Manager Index (PMI) for China’s manufacturing sector released by the National Bureau of Statistics, show that the economy faced greater downward pressure in November. It would be extremely difficult to achieve the country’s growth target this year. This slowdown has appeared for many reasons. In addition to all the deep-seated problems, the most direct cause is the large-scale outbreaks of Covid-19, coupled with unnecessarily incremental, drastic measures and one-size-fits-all approaches some localities use to control and contain the virus. Their inclination to close businesses, lock down communities and urge people to stay home has disrupted the normal functioning of society and dampened market expectations and confidence. The government’s stern Covid-19 controls have taken a toll on the Chinese economy.
