Xi Jinping called China’s economy “resilient” and vowed to deepen economic ties with other countries as he begins a third term as head of the country’s ruling Communist Party.
“China cannot develop in isolation from the world. The world’s development also needs China,” Xi said, addressing an audience of Chinese and foreign journalists after the closing of the party congress.
The twice-a-decade event came at a time of heightened concern for the world’s second-largest economy, where growth has been hit by tight Covid-19 controls and a deep housing market slump.
Xi tried to allay those concerns by referring to the country’s long-term growth prospects. “Currently, the Chinese economy is resilient. The economic potential is vast. There’s a lot of room to maneuver,” he said. “The strong long-term economic fundamentals will not change.”
At the party congress, Xi pushed for the “dual circulation” policy, an attempt to insulate China from economic shocks and US sanctions while maintaining strategic trade and investment ties with the rest of the world. Xi emphasized the latter part of this approach in his remarks to reporters, saying the country’s economic opening-up “will only be broader.”
Xi also promised economic policy changes aimed at improving growth, without elaborating.
“We will firmly and fully deepen reform and opening up, firmly push forward high-quality development,” he said.
Bloomberg Economics Dear that China can grow around 4.6% a year over the next decade, if the reforms already announced continue, such as raising the retirement age and relaxing restrictions on residence in cities.
Xi’s recent predecessors as party bosses resigned after serving two five-year terms, but the congress outcome means Xi should remain in the top job until at least 2027. He is expected to appoint long-time associates to key economic posts. in government next year.
Xi’s brief remarks to the press included a call for China to achieve “Chinese-style modernization,” referring to an effort to achieve high-income status without following the economic and political policies seen in advanced economies.
In his report to the party congress last week, Xi emphasized that economic development was the party’s “top priority,” but added that development must be balanced with national security. The focus for the next five years will be on developing strategic technologies and limiting inequality, he added.
—With the help of Li Liu
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