Xi cheers on China Inc.
Islam News – Xi Jinping, China’s leader, is now extolling the economy he has long sought to rein in. He lauded China’s economy in the first minute of his New Year’s address, noting that he planned to reduce taxes and fees and otherwise “ease the burden on businesses.”
His remarks signal a shift in priorities. In recent years China abandoned its pro-business market overhaul to put the goals of the Communist Party above business interests, which included crackdowns on tech companies and curbs on borrowing by China’s property firms.
Growth is now at its slowest rate in decades, hampered by a property market in crisis, a lack of promising jobs for young people, consumer confidence shaken by years of rigid Covid policies and depleted local government coffers. Companies like Apple are looking with greater urgency to diversify outside of China.
What’s next: China’s central bank said this week that it was relaxing the oversight of technology companies, and the country has begun rolling back restrictions on heavy borrowing by property developers. Liu Kun, the finance minister, told state media that the country planned to spend heavily in 2023 to support an economic recovery.
In the U.S., inflation continued to slow on an annual basis in December, a welcome relief for American households.
Source: The New York Times