Chinese Leaders Okay Plan To Rev Up Slowing Economy

Chinese leaders agreed at an annual planning meeting to step up spending to help rev up the world’s second-largest economy, state media reported, without giving details of any policy changes, the Associated Press (AP) reported.

The recovery after stringent coronavirus pandemic restrictions were lifted was short-lived, and the economy is forecast to slow next year.

The official Xinhua News Agency said leader Xi Jinping chaired the meeting aimed at boosting growth, defusing risks, and ensuring stability. The report cited that the meeting concluded “the proactive fiscal policy should be appropriately intensified and improved in quality and efficiency.”

Recent estimates suggest the Chinese economy has expanded this year at about a 5% annual rate, in line with the government’s target.

But the recovery after stringent coronavirus pandemic restrictions were lifted was short-lived, and the economy is forecast to slow next year.

The ruling Communist Party’s capacity to steer the economy through challenging times has broad implications for regional and global growth. Earlier this week, the government reported that exports rose in November, for the first time since April and said demand may be picking up after months of decline.

But some economists said they doubted the rise, fueled mainly by exports of vehicles and ships and by the holiday shipping rush, would continue for long.

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