China vows to break down barriers to aid economic recovery, but call continues for stronger stimulus

Premier Li Qiang held a study session with his cabinet on Monday, vowing to tackle barriers to forming a vast market

Officials have discussed a wide range of economic issues at seven high-profile meetings this month ahead of the start of the ‘two sessions’ next week

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Premier Li Qiang chairs a themed study session of the State Council on Monday. Photo: Xinhua

Published: 11:00pm, 27 Feb 2024Updated: 1:12am, 28 Feb 2024

China’s leadership has placed economic recovery as a higher priority on the work agenda for 2024, rallying all-around efforts to break down barriers in consumption, foster a better business environment and push for a unified market, while analysts have suggested even stronger stimulus.

Officials have discussed a wide range of economic issues at seven high-profile meetings this month, including the State Council and the Central Financial and Economics Affairs Commission, according to public records.

The latest push was heralded by Premier Li Qiang, who pledged on Monday to tackle barriers to forming a vast market at a study session with his cabinet.

“It involves smoothing domestic trade, establishing a more favourable business environment, and stimulating market vigour, all while bolstering our global competitiveness through technological innovation and industrial advancement,” he said.

His appeal followed recent trips to Hubei, Shanxi and Shaanxi provinces, along with five separate State Council meetings this year, where he mostly addressed thorny issues including technology, demographics, local debt and attracting overseas investors.

China’s 5.2 per cent gross domestic product growth (GDP) last year has not yet revived consumer or investor confidence, and it still faces huge challenges in the property market, local debt, subdued consumption and lingering external risks.

China is widely expected to again set an “around 5 per cent” growth target during the “two sessions” annual parliamentary meetings, which will start next week.