Premier faces China’s economic issues square on in meeting as inflation adds to pressures

Premier Li Qiang met business leaders and economists on Tuesday before inflation data pointed to persistent pressures for China’s economy

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China’s consumer price index (CPI) edged down to a three-month low in June. Photo: EPA-EFE

Frank Chenin ShanghaiandMia Nulimaimaitiin Hong Kong

Published: 5:45pm, 10 Jul 2024

Premier Li Qiang struck a positive tone on the state of China’s economy in a meeting with business leaders and economists, while also cautioning heightened complexities choking growth, as inflation data added to persistent pressures.

Stressing that China’s economy was in “stable operation”, Li admitted that factors affecting growth are “more complex than before” and that the difficulties needed to be resolved with greater efforts.

“We must candidly analyse the situation and not avoid the problems so as to accurately grasp the situation and make scientific policy decisions,” the premier said during the symposium in Beijing on Tuesday.

The world’s second-largest economy continues to grapple with an uneven recovery, but Li and other top leaders have tipped stable growth in the first half of the year and said that the around 5 per cent annual growth objective was attainable.

Beijing is trying to whip up more positivity in the lead-up to the reform and economy-centric third plenum slated to be convened next week, but the upbeat official portrayal of the economy is marred by poor demand and confidence, which has been further compounded by weak inflation.

China’s consumer price index (CPI) edged down to a three-month low in June after growing by a paltry 0.2 per cent year on year, compared to an increase of 0.3 per cent in May, the National Bureau of Statistics said on Wednesday.