Chinese state policy advisors have raised the alarm over the country’s meager economic growth, warning that it would be a considerable risk.
Yang Weimin is a deputy director of the economic committee of the Chinese People’s Political Consultative Conference (CPPCC), the top advisory body on governance.
During the Caixin Summit on Friday. On November 18, he said that China’s most significant risk is an extremely slow expansion.
Yang, a well-known economist, warned: “The greatest risk in economic development these days is the too slow growth rate.”
China’s statistical data showed that the world’s second-largest economy expanded 3.9% year-on-year in the third quarter after growing only 0.4% in the second quarter of this year.
For the first nine months of this year, China’s gross domestic product grew 3% year-on-year, well below the regime’s annual target of around 5.5%.
Addressing the summit, Yang Weimin said that China’s growth rate is not in an appropriate range.
China Daily citing Yang, said that achieving a specific objective at the expense of sacrificing the country’s economic development is inappropriate.
The economist added that it’s necessary to bring China’s growth back into a more reasonable range, and a dynamic balance between multiple policy objectives should be achieved.
Yang said it is essential to incentivize local government officials by mitigating their concern of being held excessively accountable. It is also necessary to vitalize enterprises by increasing policy certainty and stabilizing expectations of the private economy.
Yang Weimin is not the only economist at the Caixin Summit to highlight the need for China to return to a normal track.
Liu Shijin is another member of the Chinese People’s Political Consultative Conference.
According to Caixin Global, Liu also emphasized the need to turn China’s economic downturn around.
He said: “China’s economy has been growing at an average pace slower than its potential for the past three years. The top priority now is getting economic growth back to a normal track or an appropriate range.”
Liu said that China’s economy has grown below its potential growth rate over the past three years and that this situation should not continue.
He said that China should strive for an average annual growth of about 5% from 2022 to 2023, which would be necessary for growth stabilization.