Xi Jinping, the President of China, emphasized the need to actively respond to the challenges facing the country on August 17, as he praised former President Jiang Zemin's achievements in overcoming significant political and economic upheavals, including the Asian financial crisis.
His remarks came on the 100th anniversary of Jiang's birth, coinciding with the release of July's economic indicators, which fell short of market expectations, highlighting a clear slowdown in China's economic growth.
Poor July Economic Indicators Highlight Clear Economic Slowdown
According to the National Bureau of Statistics of China, retail sales in July increased by only 0.6% compared to the same period last year, falling short of the 1.5% forecast by Reuters and the 1.0% growth rate recorded in June.
Industrial production, which reflects corporate activity, also saw a modest increase of 4.5% year-on-year, below the previous month's growth of 5.3% and the market expectation of 4.8%.
Fixed asset investment, a key driver of China's economy alongside exports and consumption, also showed weakness. From January to July, fixed asset investment decreased by 6.7% compared to the same period last year, worsening from a 5.7% decline in the first half of the year and falling short of the market expectation of a 6% drop. The urban unemployment rate in July rose to 5.2%, up from 5.0% in June.
These economic indicators follow a second-quarter growth rate of 4.3%, the lowest quarterly growth in about three and a half years since the COVID-19 pandemic. Concerns are growing over downward pressure on the Chinese economy due to weak domestic demand and investment contraction.
Sun Xiao, the chief statistician at the National Bureau of Statistics, stated, "The external environment is complex and volatile, and the industrial economy is still facing many difficulties and challenges in the process of transitioning from existing growth drivers to new ones." He also pointed out persistent issues such as insufficient effective demand, mismatches between production and sales, and severe cash flow pressures on some industries and companies.
Xi Calls on Jiang's Crisis Management Experience, Warns of 'Strong Winds and Rough Waves'
As China's economic growth slows, Xi's remarks during the 100th anniversary ceremony for Jiang Zemin drew attention to past experiences in overcoming crises.
According to China Central Television (CCTV), Xi attended the ceremony in Beijing and delivered a significant 40-minute speech, reflecting on Jiang's achievements in economic reform, opening up, World Trade Organization (WTO) accession, and foreign and defense policies.
Xi particularly noted that Jiang maintained economic development as a core task during a period of rapid international changes and serious political turmoil in China from the late 1980s to early 1990s.
He highlighted Jiang's commitment to upholding the "Four Cardinal Principles" of socialism and the leadership of the Communist Party while continuing reform and opening up, asserting the country's independence, dignity, security, and stability through diplomatic efforts.
Xi also praised Jiang for navigating through successive crises, including the Asian financial crisis in the late 1990s and the major floods in 1998, while maintaining the momentum of reform and economic growth.
He remarked, "Comrade Jiang Zemin made bold decisions at critical junctures in history and calmly responded to risks and challenges."
Bloomberg analyzed that Xi presented Jiang's model of economic development, reform, and strong party leadership as a way to navigate current domestic and international pressures. By placing economic growth at the center of policy while maintaining party leadership and social stability, Xi invoked Jiang's experiences as lessons for overcoming the current economic slowdown and geopolitical tensions.
Xi stated that in the new journey of the new era, the country must firmly safeguard its sovereignty, security, and development interests while achieving both rapid economic growth and long-term social stability. He emphasized the need to actively respond to significant tests, such as "strong winds and rough waves, and even dangerous torrents," with a strong fighting spirit and exceptional fighting capabilities.
The "strong winds and rough waves" mentioned by Xi are interpreted as a comprehensive reference to the domestic and international risks facing China, including geopolitical uncertainties from conflicts in the Middle East, trade and technology tensions with the United States, and issues related to Taiwan, as well as internal pressures from weak domestic demand and investment contraction.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.