A senior Communist Party official warned on Saturday that China’s economic recovery’s base is not strong enough and warned of potential spillover consequences from the world’s economic issues.

Han Wenxiu, deputy chairman of the party’s office for finance and economic affairs, added that the world economy was in danger of stagflation and that certain countries had to do a delicate balancing act as they attempted to stabilize their economies, prices, and financial markets.

Without mentioning any specific nations, he said at a government-organized China Development Forum that such concerns arise when many industrialized countries aggressively tighten their monetary policy, creating issues for banks as well as foreign debt worries and financial market instability.

Global supply chains must be restructured as a result, he claimed.

“The foundation of China’s economic recovery is not yet solid enough,” Han said.

Latest economic data demonstrate that once the government abandoned its zero-COVID strategy late last year, China’s economy recovered from COVID-19 slumps.

Han stated that China is confident in achieving its goal of 5% yearly economic growth.

According to him, the growth objective had taken into account the need to increase employment and improve people’s standard of living as well as the potential for growth and a number of challenges.

According to him, China now does not appear to be experiencing inflation or deflation and has much flexibility for monetary policy maneuvering.

Han said that the second-largest economy in the world would continue to open its markets and welcome international investment.

“China welcomes companies from all countries to come and invest and expects foreign firms to hold a long-term view and develop extensively in the market,” Han said.

(Adapted from StraitsTimes.com)

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