AiBotBEIJING (Reuters) – China’s President Xi Jinping has warned that the country is facing a critical juncture, with economic risks looming large, according to a report by the state-owned Xinhua news agency.
The report, citing a high-level meeting of the Communist Party of China (CPC) led by Xi, suggests that the country’s leader has acknowledged the gravity of the economic situation and the need for decisive action.
According to Xinhua, Xi told the meeting that China was “standing at a critical juncture” and that the country must “seize the day” to address the many economic challenges it faces. The report did not provide further details on the meeting.
The warning comes as China’s economy grapples with a series of challenges, including a slowdown in manufacturing, a rise in unemployment, and a debt crisis. The country’s growth rate has slowed significantly over the past year, with several provinces and cities experiencing sharp declines in output.
Chinese officials have repeatedly expressed concerns about the country’s economic outlook, with Premier Li Keqiang warning in a speech earlier this month that the risks facing the economy are “grave and complex”.
Xi’s comments suggest that the government is taking a more cautious approach to economic management, with a growing recognition of the need for policy reforms and fiscal discipline.
The report noted that Xi called on the meeting to “seize the day” and take decisive action to address the economic challenges. The Xinhua report did not provide details on what specific measures Xi advocated for.
China’s economic woes have significant implications for the global economy, given the country’s size and integration into the world trade system. Any downturn in China’s economy could have far-reaching effects on global markets and economic growth.
The warning from Xi comes as his government is also facing growing domestic pressure over the economic situation, with widespread discontent over high joblessness, stagnant wages, and rising inequality.
China’s leadership has consistently maintained that the country’s economic growth will recover, but the growing recognition of economic risks suggests that the path ahead is increasingly uncertain.
Chinese officials remain tight-lipped over the specifics of the economic measures that will be taken. However, there are signs that the government is considering a more targeted approach, focusing on investment in key sectors and infrastructure projects to stimulate economic growth.
The government’s response will be closely watched by investors and policymakers both in China and around the world, as the global economy remains highly exposed to developments in the world’s second-largest economy.