President Xi Jinping has issued a series of business-focused directives over the past week, as attention turns to Beijing’s efforts to stimulate China’s economy.
Xi’s latest remarks came on Sunday in the northeastern city of Tianjin, during an event marking the 40th anniversary of China’s economic development zones.
During inspection trips to Fujian and Anhui last week, Xi appeared to seek a first-hand understanding of the state of the world’s second-largest economy and the implementation of recent policies.
Xi’s emphasis on “development” comes at a time when China’s economy is facing pressure from domestic challenges and global uncertainties, with growing concerns about meeting its annual growth target.
In Fujian, Xi invoked the spirit of “daring to be first and striving to win” and quoted a famous saying in Hefei, Anhui province: “How many times in life can you seize the moment to fight?”
Vice-Premier He Lifeng conveyed Xi’s directives at a symposium in Tianjin on Sunday, held to commemorate the 40th anniversary of the first national-level economic and technological development zone.
Xi stressed that “national-level economic and technological development zones should focus on advancing China’s modernization, continuously promoting innovation and internal dynamism… participating in the high-standard Belt and Road Initiative… and helping build the ‘Invest in China’ brand.”
As symbols of China’s opening-up and reform over recent decades, these zones have become key drivers of local economic growth, starting with coastal regions such as Guangdong, Fujian, and Shanghai.
Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, noted that Xi’s speeches during the tours echoed the message from the Politburo meeting in late September, when a “package of incremental measures” was announced to stimulate the economy.
“The economy is under pressure, so the [central] government really wants to mobilize local government officials to take stronger initiatives, assume more responsibility, and be more proactive in stimulating the local economy,” Zhang told the South China Morning Post.
Speaking in Tianjin, Vice-Premier He emphasized that development zones should identify new challenges, spearhead reforms, drive regional growth, and lead China’s economic transformation and global integration.
Since the establishment of the first national-level development zone in 1984, China has created 229 economic and technological development zones, which have played a significant role in promoting high-quality manufacturing and establishing open, high-standard economic systems.
According to the Ministry of Commerce, these zones achieved an industrial output of 15.2 trillion yuan (US$2.1 trillion) in the first half of the year, up 3.7 percent year-on-year. The regions also contributed 1.3 trillion yuan in fiscal revenue, with tax revenue reaching 1.2 trillion yuan. Additionally, the zones reported an import and export value of 4.7 trillion yuan, an increase of 9.2 percent from the previous year. However, foreign capital utilization during the same period dropped by 27.2 percent to US$16.6 billion.
China’s leaders are grappling with multiple economic challenges, ranging from weak domestic demand to uncertainties surrounding the “around 5%” annual growth target.
To revive growth, Beijing has launched a broad policy push, but questions remain about whether these efforts will be sufficient to reverse the economic slowdown.
Recent press conferences by the Ministry of Finance and the Ministry of Housing and Urban-Rural Development have unveiled a series of measures aimed at stabilizing the economy, focusing on property and fiscal policy.
These initiatives set the stage for upcoming high-level meetings, including the much-anticipated NPC Standing Committee and Politburo gatherings, as well as the Central Economic Work Conference in mid-December.
These key meetings are expected to outline broader strategies for boosting growth and addressing the complex challenges facing the Chinese economy.
