China’s economic growth is ‘biggest challenge’ for Beijing in 2022, senior adviser warns

Yang Weimin suggests that Beijing’s policymakers could rally more supportive policies to address economic deterioration and rising external challenges

Headwinds facing world’s second-largest economy include new Omicron variant, financial risks resulting from Evergrande debt crisis and trade relations with US

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The magnitude and decline of China’s economic slowdown has been larger than expected this year, according to Yang Weimin, deputy director of the CPPCC’s Economic Affairs Committee. Photo: Dickson Lee

Published: 11:30pm, 2 Dec 2021Updated: 9:21am, 3 Dec 2021

Stabilising economic growth in the coming year will require Beijing to implement new measures, as a larger-than-expected decline in the growth rate this year has sparked market concerns over China’s development prospects, a senior government adviser warned on Thursday.

The comments by Yang Weimin, deputy director of the Chinese People’s Political Consultative Conference (CPPCC)’s Economic Affairs Committee, suggest that Beijing’s policymakers could rally more supportive policies in 2022 in response to economic deterioration and rising external challenges.

A raft of pressing issues will be discussed at the upcoming central economic work conference in mid-December, including stabilising the economy and markets through cross-cyclical adjustments; balancing the pandemic control and economic growth; managing the risks caused by the domestic slowdown and external spillover; and maintaining exports by improving external relations.

“Economic growth should be the biggest challenge next year,” said Yang, who spent several years drafting the country’s long-term plans at the National Development and Reform Commission and also served as deputy head of the Office of the Central Leading Group for Economic and Financial Affairs.

The Chinese economy has slowed significantly this year, with year-on-year growth falling to 4.9 per cent in the third quarter from 18.3 per cent in the first quarter.

“If we look at the magnitude and extent of the decline, it is slightly larger [than expected],” he said via video link at the Sina Finance 2021 Annual Conference.

His assessment came after Renmin University estimated last week that year-on-year gross domestic product (GDP) growth during the fourth quarter of 2021 could drop below 4 per cent as a result of significant downward pressure on China’s economy.