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China's economic recovery
EconomyChina Economy

As China strikes positive tone on economy, experts play down short-term impact of policy support

  • Propaganda machine is churning out pro-growth statements and defending coronavirus-control measures, but some say greater policy support is needed
  • Others suggest that official data may overstate the strength of China’s economy ahead of the party congress and leadership reshuffle later this year

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Nearly two months after Shanghai was placed under lockdown, party mouthpiece People’s Daily says the nation’s zero-Covid policy is gradually having “the desired effects”. Photo: Reuters
Amanda Lee

While Chinese officials and state media are playing up the nation’s economic prospects, many analysts remain sceptical about seeing any significant improvements in the short term, even as Shanghai is looking to gradually ease a lockdown that has gripped the financial hub since March.

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Nearly two months into the lockdown of Shanghai, with a population of 25 million people, health authorities there announced a “phased” plan on Monday to broadly reopen and allow normal life to resume next month.

In an article on Wednesday, party mouthpiece People’s Daily cited an official with the state planner – the National Development and Reform Commission (NDRC) – as saying that the economy will return to normal “soon”, as the country’s “efficient Covid-19 control measures and pro-growth policies gradually produce the intended effects”.

It also highlighted comments by NDRC spokeswoman Meng Wei, who said the government would “make every effort” to expand domestic demand, press ahead with a number of major investment projects to drive growth, and lift market confidence while restoring production.

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Shanghai plans to start lifting months-long lockdown in June

Shanghai plans to start lifting months-long lockdown in June
The article ran after Vice-Premier Liu He said on Tuesday that the government would support the private economy, as well as the development of digital economy companies and their public listings. His comments, at a meeting with tech executives, buoyed hopes that a regulatory crackdown on the sector might be easing.
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