With China’s economic plenum still unscheduled, observers worry politics remain in command

Without a date for a third plenum, typically a major agenda-setting moment for the economy, observers are concerned China’s recovery will remain weak

Mixed signals are weighing down on investor confidence, they say, as many wait for concrete policy support indicating renewed emphasis on growth

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Mixed messages and a lack of firm action on growth and recovery have observers and business groups worried over the precedence of politics above economic recovery. Photo: Xinhua

Published: 11:00pm, 1 Feb 2024Updated: 11:27pm, 1 Feb 2024

Beijing’s reluctance to go full throttle in boosting economic growth – combined with an absence of clear directives for reform – could further dampen an already dreary climate, experts and foreign business groups have warned.

China’s subdued economic recovery, its restraint in employing strong stimulus measures and mixed policy signals continue to weigh on both domestic and foreign investment as well as consumer confidence, they said.

Despite those concerns, during Wednesday’s meeting of the Communist Party’s Politburo – its first of 2024 – the 24-member decision-making body indicated the balance of attention will be placed on politics, as the People’s Republic prepares to celebrate its 75th anniversary in October.

Top priorities will include party discipline and cohesion, according to a statement issued after the meeting, though “high-quality development” was also emphasised.

National security and upholding unity under the party and central government’s leadership remain the most crucial goals, while other matters such as youth employment and economic rejuvenation seem to rank lower, observers and foreign chambers said.

“Businesses do not know where they stand due to mixed messaging from the Chinese government, which is contributing to a growing sense of uncertainty, further eroding confidence in this important market,” said Adam Dunnett, secretary general of the European Union Chamber of Commerce in China.

A lack of coordination between different ministries with different agendas has often led to contradicting actions, he added.