Beijing stated it’s going to go full throttle next year at saving its Covid-destroyed economy by increasing consumption and letting go of control over things like private industry, which includes the lagging property and tech sectors. This current pledge is the beginning of a big change from leader Xi Jinping’s strong effort to dominate private businesses, which were viewed as too powerful and unreliable.
China is the world’s second-largest economy, and it faces some huge challenges going forward. Covid cases are spiking again after leaders decided to let up on restrictions, and exports are also taking a hit, further damaging the global economy.
What is China’s top priority for the coming year?
Trying to stabilize economic growth. China’s top leaders are making statements and letting others know that we need to support and encourage the private sector. They’ve made it clear they’re in support of protecting property rights and the interests of entrepreneurs. These remarks were made after economic data displayed a massive drop in business activity for November. Economists are predicting growth by the end of 2022.
The comments recently made by leaders of China signify that they’ll loosen their rope around the country’s private sector, changing the tone for their 2023 efforts in comparison to previous years. No mention of antitrust regulations was made, however. Instead, they let it be known that China’s digital economy will be promoted, creating more jobs.
Regulations and controls have had a tight grip on China’s job market, with unemployment soaring across the country.
Just last week, a couple of the country’s top committees, showed an intricate plan to hone in on domestic demand and increase consumption and investment until around 2035. The process is predicted to not be smooth or quick because many households are living paycheck to paycheck, drastically reducing their spending power and desire to make purchases.
With growth goals and tech boosts, China has its work cut out for them in 2023 as they try to repair the damage made over the past few years.