Chinese President Xi Jinping says economic recovery ‘still at critical stage’

President Xi Jinping warns China's economic recovery is at a critical stage, urging measures to boost economy and prevent risks. Property sector woes and sluggish domestic activity drag on post-pandemic rebound. Exports rose in Nov, but imports dropped, highlighting weak consumer activity. Moody's downgraded outlook.

President Xi Jinping said that China’s economic recovery is “still at a critical stage”, state broadcaster CCTV reported on December 8, as sluggish domestic activity and property sector woes drag on a post-pandemic rebound.

The world’s second-largest economy expanded a moderate 4.9 percent in the third quarter, slightly less than Beijing’s five percent target, which is one of the lowest in years.

“At present, the country’s economic recovery is still at a critical stage,” Mr. Xi said at a meeting of China’s Communist Party Politburo, the country’s top decision-making body, according to CCTV.

Mr. Xi urged measures to boost the economy, saying that “the development situation facing the country is complex, with increasing adverse factors in the international political and economic environment”.

“It is necessary to focus on accelerating the construction of a modern industrial system, expand domestic demand, (and) prevent and defuse risks,” said Mr. Xi.

Mr. Xi also emphasised the need to shore up “self-reliance” in key science and technology sectors, and to “accelerate the construction of a new development layout”.

Officials have struggled to sustain a recovery from the impact of the COVID pandemic, even after removing draconian containment measures at the end of 2022.