Chinese Premier Li Keqiang on Thursday issued a dire growth warning as COVID-related restrictions continue to multiply manifold in the country. Noting the shrinking demand and stalled economic development of the technological sector, Keqiang reiterated his warnings, saying that there are “grim challenges” ahead if the country doesn’t take decisive actions at all levels. According to Chinese media reports, Keqiang was addressing over 1,00,000 provincial, city, and council representatives, and urged them to help “stabilise” the spiralling economy.
The Chinese economy was expected to rebound from pandemic bottlenecks. The growth predicted at 5% for China’s forthcoming quarter was dropped to 3% by the UBS. Chinese Premiere Li Keqiang noted that this was the slowest growth rate projected in the last 40-years except for once in 1990. “We cannot accept this,” he said, as quoted by Washington Post. The leader further emphasised that the primary goal for the second quarter was to ensure the stable expansion of the economy. “The target is not high, and it is far worse than the growth target of 5.5% GDP (for 2022) proposed at the beginning of the year,” he stressed.
This is not the first time China’s second top leader sounded alarmed over the slogging growth rate on the mainland. Earlier this month, Keqiang had warned of a “complex and grave” employment situation as COVID-19 cases in Shanghai spiked. The Chinese leader painted a grim picture of the dwindling employment opportunities and in turn massive halt in economic development.
Keqiang’s comments come as Chinese President Xi Jinping has repeatedly spearheaded controversial COVID-19 measures that have already curtailed economic growth. At least 31 cities in China are under full or partial lockdown. The fresh outbreak of coronavirus in Shanghai and subsequent lockdowns have impacted nearly 214 million residents across the country, as reported by CNN. Moreover, a crackdown on tech companies and private sectors to exert control over the economy also added to the hardships for the country.
In two years, the world has mostly learnt to live with the virus, taking minimal necessary measures to prevent further outbreaks. President Xi Jinping has doubled down on his efforts to curb the community spread of the virus by imposing mass testing mandates and lockdowns. He ordered strict adherence to the controversial zero-COVID policy and said he would “punish” anyone who opposes or questions it.
This has led to an unprecedented job crisis, with employment rates falling to a critical low in two years. Extended lockdowns in China’s financial hub have brought the world’s largest economy to what Societe Generale analysts have described as “near breaking point.” From manufacturing and service sector to small scale businesses, all were intensely affected by the COVID measures.