In recent weeks, Beijing has published statistical figures showing its economy’s struggle to recover from the Covid-19 era, prompting US President Joe Biden to warn that these problems make China a “time bomb.”
“In the wake of the smooth transition from epidemic prevention and control, China’s economic recovery is an undulating and tortuous process that will undoubtedly encounter difficulties and problems,” said Chinese Foreign Ministry spokesman Wang Wenbin.
He pointed out that “a number of politicians and the media in the West exaggerate the cyclical problems in the process of economic recovery in post-pandemic China,” adding, “but in the end, they will inevitably be proven wrong.”
These statements came the day after Beijing announced a halt to the increasing unemployment rates among young people, in light of a series of disappointing indicators that raise concerns about the second economy in the world.
Unemployment among youth aged 16 to 24 hit a record 21.3 percent in June, while the overall unemployment rate rose from 5.2 percent in June to 5.3 percent in July, according to the National Bureau of Statistics.
Retail sales, the main indicator of household consumption, in July grew at an annual rate of 2.5 percent, according to the Bureau of Statistics, down from the 3.1 percent rate achieved in June.
In addition, industrial production achieved an annual growth of 3.7 percent in July, down from the 4.4 percent it achieved in the previous month.
Biden said during a fundraising event in Utah last week that “China is a ticking time bomb in many cases,” pointing to high unemployment and an aging workforce.
“China is in trouble,” he said, warning that “when the bad guys get into trouble, they do bad things.”
With increasing numbers pointing to a possible slowdown in the economy, many experts have called for a broad recovery plan to boost the economic cycle.
However, the authorities have so far maintained targeted measures and declarations of support for the private sector, in light of the limited concrete measures taken by Beijing.
Chinese leaders have sought to stimulate domestic consumption over the past weeks.
Last month, the State Council issued a 20-item plan to encourage residents to increase spending in several economic sectors such as cars, tourism and household appliances.
At a meeting in late July chaired by Xi Jinping, the Communist Party’s Politburo warned that the country’s economy “is facing new difficulties and challenges.”
China has set a target of 5 percent growth in its GDP this year. Although this percentage is among the lowest in the country in decades, Prime Minister Li Qiang admitted that achieving it will be difficult.
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