China on high alert for mounting economic headwinds as Li Keqiang meets with local government heads
- Li Keqiang urged local governments to take more action to support small businesses and make them a major economic priority
- The move comes hot on the heels of warnings by several government advisers that the country’s economic recovery is not stable yet
A meeting between Chinese Premier Li Keqiang and 10 local government heads on Monday shows Beijing is on high alert for mounting headwinds for the world’s second-biggest economy, after the central government promised a new round of supportive measures for smaller companies to protect jobs and growth.
The moves come hot on the heels of warnings by several government advisers that the country’s economic recovery is not yet stable.
China’s gross domestic product growth rate in the fourth quarter is widely expected to fall below the key threshold of 4 per cent.
“Unstable and uncertain factors, at home and overseas, are increasing and China’s economy is facing new downward pressure,” Li Keqiang said on Monday in Shanghai, according to the state news agency Xinhua.
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The meeting included the heads of economic powerhouses like Shanghai, Guangdong, Jiangsu and Zhejiang, but also governors from less economically-vibrant regions, such as Guizhou and Jilin.