Opinion | China won’t fix its economic problems by dispatching ministers to provinces

In Chinese historical dramas, imperial inspectors dispatched by the emperor are often described as the last hope in persuading local officials to behave. These wise ministers from the capital were seen as the answer to governance failures at the local level.

The Chinese cabinet’s decision last month to send ministerial-level “inspection and service” teams to 10 different Chinese provinces for “economic stabilisation” fits this plot.

It shows the government’s unhappiness with the economic situation and its desire to arrest a deepening slowdown. To the outside world, it sends a signal that China is not giving up on growth, even though the 5.5 per cent GDP target is beyond reach for 2022.

Central bank governor Yi Gang led a delegation to Henan province, where protests triggered by local bank failures and unfinished property projects grabbed headlines this summer. Yi listened to complaints about “problems and difficulties” in investments and promised the necessary help, according to reports by China’s state media.

Finance minister Liu Kun toured the eastern province of Zhejiang for four days at the end of last month, where he checked water reservoir and railway investment projects. Zhejiang provincial Governor Wang Hao praised Liu’s trip as “a big gift parcel” that showered the province with “needed rain”.

These unusual inspections – on top of the regular 19 inspection teams headed by vice ministers – are part of Beijing’s efforts to control the pandemic on one hand, and keep economic growth on track on the other – as China had largely done before Omicron became the main Covid-19 variant.

Local governments have to give priority to pandemic controls when there’s a risk of a new outbreak but can accelerate economic activity when there are no immediate threats from the virus. The two goals, however, are in conflict with each other these days.