China keeps interest rates steady amid gloomy forecasts


Leading Chinese economic planners expressed confidence in the outlook for the world’s second-largest economy during a news conference in Beijing. They opted to maintain key interest rates, citing signs of improvement in sectors like services.
This optimistic stance contrasts with predictions from the Asian Development Bank and the Organisation for Economic Cooperation and Development, which suggest that weaknesses in the Chinese economy could have negative ripple effects on global and regional growth.
Cong Liang, Vice Chairman of China’s National Development and Reform Commission, highlighted China’s historical resilience during crises as a reason for confidence. He pointed to improved factory output and tourism figures as evidence of economic recovery. While they didn’t present significant new data, the officials acknowledged the challenges in reviving growth and shared the belief that the ruling Communist Party would ensure that the slowdown is temporary.
Cong emphasised the effectiveness of the party’s decision-making and macro-control policies. Despite ongoing domestic and global factors affecting China’s economy due to the pandemic, he acknowledged that economic recovery would be gradual and challenging.