Chinese Premier Li Keqiang warns of challenges over jobs, private sector, red tape

Name: China’s economy expands record 18.3 per cent in the first quarter of 2021
Uploaded: 2021-05-10T12:41:54.000Z
Duration: 2 min 1 s
Description: China’s economy expands record 18.3 per cent in the first quarter of 2021

Foundation of economic recovery remains shaky, he warned last month, newly released transcript shows

This year’s employment target will not be easy to hit, Li said before Politburo meeting to discuss first-quarter economic performance

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A transcript has been published of Chinese Premier Li Keqiang’s comments at last month’s conference on clean governance. Photo: Xinhua

Jane Cai

Published: 8:41pm, 10 May 2021Updated: 11:13pm, 10 May 2021

China’s economy is facing a slew of challenges from job creation to government red tape and low efficiency in spite of a strong recovery in the first quarter, Premier Li Keqiang told officials in a recent meeting.

Li made the assessment at the annual national conference on clean governance on April 26, four days before the 25-member Politburo, headed by President Xi Jinping, convened a meeting to discuss first-quarter economic performance and decided to double down on tackling economic weakness.

The country reported a record 18.3 per cent growth in gross domestic product for January to March compared with a year earlier, when the coronavirus outbreak shut down much of the economy and helped cause a contraction of 6.8 per cent.

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China’s economy expands record 18.3 per cent in the first quarter of 2021

Despite its outward confidence in being among the first countries to recover economically from the pandemic, Beijing recognises that growth is on a weak footing and there are many challenges ahead.

According to a transcript published on Sunday night by the official Xinhua news agency, Li warned against complacency as he noted difficulties and challenges over employment, the private sector, and government inefficiency and red tape.

“The foundation of our economic recovery is still shaky,” Li told the officials. “Small and medium enterprises, as well as self-employed businesses, are suffering from rising costs, which means there is heavy pressure on employment.”

Potentially adding to the country’s employment challenges is that a record 9.1 million students are expected to graduate from mainland Chinese universities this year, joining graduates returning from overseas and the country’s vast army of migrant workers.

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