Xi says will 'respond promptly to concerns of people' as China's economy slumps

Chinese President Xi Jinping urged renewed efforts to tackle economic risks and “external shocks” in his Lunar New Year message on Monday as Beijing faces increased uncertainty with Donald Trump’s return to the White House.

Xi made the remarks to top Communist Party officials as China prepares for its largest public holiday, which this year spans from January 28 to February 4. China continues to grapple with challenges in securing its economic recovery from the COVID-19 pandemic, along with a property sector crisis, weak consumer spending, and high youth unemployment.

The country’s economy grew by just five percent in 2024, its slowest pace since 1990, excluding the years of financial turmoil caused by the pandemic.

To reignite the stuttering economy, Beijing has announced in recent months aggressive support measures, including cutting key interest rates, easing local government debt and expanding subsidy programmes for household goods.

“Over the past year, in the face of complex and severe situations, we have responded to events with composure, implemented measures comprehensively, overcome difficulties and pushed each other to forge ahead,” Xi said.

He said Beijing had “stepped up efforts to push a basket of incremental policies to promote economic recovery”.

“We have again proven that with hard work and struggle, no difficulties or obstacles can stop the Chinese people from pursuing a better life, or… the historical process of national rejuvenation,” he said.

Experts have warned that the recovery remains uneven, and Beijing may face further headwinds this year if US President Donald Trump follows through on vows to hike tariffs on Chinese goods in retaliation for allegedly unfair trade practices.

They have also warned more efforts are needed to boost domestic consumption as the outlook for Chinese exports becomes more uncertain.

By a frozen lake dotted with ice skaters in Beijing’s historic centre, some Lunar New Year travellers expressed cautious optimism that the stimulus measures would put the country back on track in the Year of the Snake.

“Now China’s policies toward export and trade are very open,” Zhong Haiping, a 27-year-old trader from southern Guangdong province, told AFP.

She said that she aims to conquer “some difficulties” at work in the coming year, but hopes “the Year of the Snake will be better than the Year of the Dragon”.

Student Li Boxuan, who travelled from the northwestern city of Xi’an, is to set to try his luck in China’s job market – and contend with the country’s high youth unemployment.

“I should graduate next year, so I hope I can find a suitable job,” the 25-year-old told AFP.

“I hope I can progress together with our country, and we can both realise our dreams for the future.”

With inputs from agencies