China’s Premier Li projects confidence in economic recovery

Chinese Premier Li Qiang has expressed confidence that his government can restore an economic recovery while at the same time having an apparent chance against the US and EU on trade.

“The Chinese government has the ability to lead sustained economic improvement,” Li said in a speech Tuesday at the opening of the China International Import Expo in Shanghai.

He added that officials have “ample room for fiscal policy and monetary policy” and reiterated that China will reach its economic growth target of around 5 percent.

Li’s comments on the economy underscore the Chinese government’s repeated optimism that the country can meet its expansion target in the face of weak consumer sentiment, deflationary pressures and housing market woes. On Tuesday, a private gauge of services activity expanded at the fastest pace since July, a sign that consumer demand may be recovering.

Investors are awaiting details on fiscal support after the Chinese government unveiled its strongest stimulus package since the pandemic. The measures unveiled in September, which included interest rate cuts and efforts to boost housing and stock markets, could help boost demand for imports.

Li also appeared to single out the US and the European Union for their trade policies, citing “various acts of dishonesty”, without going into detail.

On Monday, China filed a complaint with the World Trade Organization over EU tariffs on electric vehicle imports from China. The US has passed its own tariffs on electric vehicles, and Washington has also worked to limit China’s access to advanced chip technologies, citing military concerns.

Speaking after Li, Malaysian Prime Minister Anwar Ibrahim praised China for managing trade in the face of “obscure, condescending and unfair trade practices” by nations he did not name.

The Malaysian leader’s trip comes as the Muslim-majority nation draws closer to Beijing, with Anwar openly criticizing the US for its support of Israel. Last month, Malaysia, Indonesia, Vietnam and Thailand became partner countries of the BRICS bloc, which China and Russia hope will become a counterweight to the US-led West.

Li and Anwar’s remarks come just before Americans go to the polls, raising the possibility of a second term for Donald Trump. He has threatened to impose 60 percent tariffs on Chinese goods, a move that would surely provoke retaliation from Beijing.

“His main message was China is strong, the economy is growing and there are all kinds of opportunities,” said Jerry Felton, CEO of Idaho-based vitamin and supplement maker Melaleuca Inc.

Some CEOs also talked about challenges, particularly with the global economy, said Felton, who attended the meeting.