China fears a recession

Chinese state-run Global Times Thursday sought to portray an “unprecedented national teleconference on stabilizing the economy,” attended by more than 100,000 people and convened by the State Council as the Chinese government’s staunch hand on the economic backbone, but it looked more like a sign that the regime’s .

This Global Times Complaining that Western media “smears China’s economy”, it reports that economic growth may slow to 2% in 2022, well below the dismal 2.8% forecast for the U.S. economy.

China’s growth target for this year is 5.5%. Since 1990, the Chinese economy has not grown slower than the US economy.

“The pessimistic predictions of China in the Western media have never been proven accurate, probably because their perceptions of the Chinese economy have been so distorted by their ideological biases and long-established political positions that they fail to understand the world’s second largest economy. ..largest economy” Global Times Angry.

The editorial insists foreign investors are still eager to put money into China – a debatable assertion Global Times Can only be backed up by total foreign capital in 2021, long before China’s frantic coronavirus lockdown of Shanghai started attracting overseas investors nervous.

BEIJING, CHINA - APRIL 26: Health workers wearing protective clothing stand outside a tent waiting to conduct nucleic acid tests on local workers to detect COVID-19 at a temporary testing site in Haidian District, Beijing, China, on April 26, 2022. In China is trying to contain a surge in coronavirus cases in the capital, Beijing, after dozens of people tested positive for the virus in recent days, leading local authorities to launch mass testing in most areas and lock down some communities where cases were detected in an effort to contain the virus China's zero-COVID strategy.

Health workers wearing protective clothing stand outside a tent as they wait to conduct nucleic acid tests on local workers for COVID-19 at a temporary testing site in Haidian District, Beijing, China, April 26, 2022. (Kevin Friel/Getty Images)

“It is undeniable that the epidemic has had a certain impact on economic activities, but it has not damaged the fundamentals of China’s economy. China is still one of the fastest-growing major economies in the world, with huge potential for infrastructure upgrades, a huge domestic consumer market, and a manufacturing sector. Resilient.” Global Times persist in.

One of the CCP’s unrivaled advantages is that “once a problem is identified, the government can mobilize a lot of national resources to solve it, and past experience tells us that it always works in the end,” said the CCP newspaper. Long-suffering Shanghai captive population possible disagree.

Workers in protective suits disinfect a pile of garbage bags in Shanghai, Thursday, April 21, 2022. Shanghai allowed 4 million people to leave their homes on Wednesday as anti-virus controls that closed China's biggest city eased, while the International Monetary Fund cut its forecast for China's economic growth and warned global flows of industrial goods could be disrupted.  (AP Photo/Nico de Rouge)

Workers in protective suits disinfect a pile of garbage bags in Shanghai, Thursday, April 21, 2022. (AP Photo/Nico de Rouge)

A well-run government with everything under control would not hold an emergency conference call with 100,000 participants.

Western media reported that Global Times such a stroke archive Thursday by Bloomberg Newsciting “growing concerns within the Chinese government about the economic impact of its Covid Zero policy.”

Chinese Premier Li Keqiang warned attendees of the conference call that there is “a risk of growth slipping out of a reasonable range,” Bloomberg said, citing “people familiar with the matter.”

plum it is said Say The March and April lockdowns are likely to cost China more economically than the initial outbreak in 2020. Some of the corrective policies touted at the emergency meeting included dropping lockdown restrictions without acknowledging that the “zero outbreak” policy was wrong.

It took three weeks for Shanghai citizens to complete the project, the report said. Appear They have still not fully opened since a seven-week lockdown, and the capital, Beijing, has refused to impose a similar lockdown because it would inconvenience the Communist royal family, scare away foreigners and embarrass China politically.

“China fell to the bottom of Bloomberg’s Covid-19 resilience rankings as the outbreak triggered restrictions on mobility, business and the functioning of daily life,” the report said, citing the blood pressure of an editorial in China’s state media.

This economist suggested The coronavirus lockdown was just one of two devastating blows to the Chinese economy on Thursday. The other, a package of economic initiatives promoted by dictator Xi Jinping, dubbed the “New Development Concept,” has not gone well:

The goals are reasonable: address inequality, monopoly and debt, and ensure that China dominates new technologies and strengthens the fight against Western sanctions. In all cases, however, Xi believes the party must take the lead, and the implementation is punitive and unstable. A flurry of fines, new regulations and purges has brought the vibrant tech sector, which accounts for 8% of GDP, to a standstill. A brutal but incomplete crackdown on the real estate sector, which accounts for more than a fifth of GDP, has led to a funding crunch — which is why home sales fell 47% year-on-year in April.

This economist Accused Xi of “expanding the least productive part of the economy: the part run by the government.” Meanwhile, private sector investors are facing more expensive capital and fears that the Chinese Communist Party will cap their profits and hit them with more expensive regulatory burdens. Innovation and ambition in China’s tech industry are giving way to the pursuit of government subsidies.

In a clear sign of deeper anxiety than Chinese state media is willing to admit, tech giant Alibaba has not provided any financial guidance for the fiscal year that began last month.company Say It can no longer predict the risks posed by the coronavirus outbreak and lockdowns. Alibaba’s market value has now lost a staggering three-quarters since the end of 2020.