President Xi Acknowledges China’s Economic Struggles, Vows Recovery Efforts

In a New Year’s Eve address, President Xi Jinping acknowledged China’s economic challenges, citing struggles faced by businesses and job seekers.

The acknowledgment marks a departure from his past messages since 2013.

During the televised speech, Xi expressed concern over the hardships faced by enterprises and individuals, emphasizing a need to fortify the country’s economic revival. This admission follows the release of the National Bureau of Statistics’ report, revealing a six-month low in factory activity, underscoring a sustained downturn in the manufacturing sector.

Despite a brief economic uptick in early 2023, China’s economy grappled with persistent issues such as a property market slump, high youth unemployment, weak prices, and financial strains in local governments. To counter these challenges, Beijing rolled out extensive support measures in the previous year and intends to intensify fiscal and monetary policies in 2024.

However, the government’s growing interventionist approach and stringent regulations on businesses have raised concerns among entrepreneurs and deterred foreign investors. Notably, the move to remove controlling shareholders at Alipay, led by Jack Ma’s Ant Group, signifies Beijing’s firm grip on major tech entities, following an extensive crackdown on Big Tech last year.

Amid economic woes, Xi reaffirmed China’s commitment to reunify with Taiwan, emphasizing the mainland’s stance on the island’s democracy ahead of Taiwan’s presidential elections.

This resolute stance reflects Xi’s broader vision of elevating China’s global stature, despite Taipei’s accusations of Beijing’s interference in their upcoming crucial elections.