China defends economy with rhetorical Q&A amid slowing growth rate, trade war pressures

The National Development and Reform Commission (NDRC) answered ‘no’ to the four questions it asked about the state of China’s economy

Beijing is concerned about worsening expectations both at home and abroad after China’s growth rate slowed to the lowest on record in the third quarter of 2019

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China’s gross domestic product (GDP) growth rate slowed to 6 per cent in the third quarter of 2019 amid the trade war with the United States. Photo: Reuters

Published: 6:15pm, 30 Dec 2019Updated: 11:08pm, 30 Dec 2019

China’s top economic planning agency has taken an usual approach to defending the state of the domestic economy by asking four rhetorical questions, with the responses aimed at helping to quell rising doubts as well as sell Beijing’s own narrative both at home and abroad.

The National Development and Reform Commission (NDRC), in a statement over the weekend, asked: Is China’s growth really losing steam?; Are foreign businesses fleeing China?; Is China losing its place in the value chain?; and Is China’s official economic data fabricated?

According to the NDRC, the answer to all the four questions is “No”.

China’s gross domestic product (GDP) growth rate slowed to 6 per cent in the third quarter of 2019 amid the trade war with the United States, and Beijing expected to continue modest policy easing next year to maintain an economic growth rate of around 6 per cent.

At present, the impact from business relocation on China’s economic growth, industrial upgrading and employment is controllable

NDRC

For the question on whether foreign businesses are fleeing the country, the agency said that “data and facts” showed China remained as an attractive destination for foreign investors, including US businesses, defying allegations made by American President Donald Trump in July that “thousands” of companies are fleeing China due to his tariffs.