Posted: 06.05.2022 13:58:00

China to enter economic race with US

Topping US economy required to demonstrate superiority of China’s one-party system, Chinese leader tells officials


Chinese President Xi Jinping has told officials to ensure that the country’s economic growth outpaces that of the US this year, according to people familiar with the discussions, even as its economy sags under its worst COVID-19 outbreak since the pandemic began.
In meetings over the past few weeks, Mr. Xi told senior economic and financial officials that ensuring that the economy is stable and growing is important because it is critical to show that China’s one-party system is a superior alternative to Western liberal democracy, and that the US is declining both politically and economically.
In response to Xi Jinping’s call to rev up growth, Chinese government agencies are discussing plans to accelerate big construction projects, especially in the manufacturing, technology, energy and food sectors, as well as to issue coupons to individuals to spur consumer spending.
China should adopt ‘more vigorous’ macro policies to hedge the impact of the pandemic, said Wang Yiming, a member of the Monetary Policy Committee of the People’s Bank of China.
China’s GDP grew 4.8 percent in the first quarter, though many economists say that number likely overstates the strength of the country’s economy.

Based on the materials of www.wsj.com