Advertisement
Analysis | How the economic slowdown and zero-Covid threaten China’s global ambitions
- Premier Li Keqiang’s recent warning that the economy is struggling to stay on track may have a knock-on effect on its global investment plans
- Some observers say the prospect of a slowdown will also hamper Beijing’s efforts to present itself as an alternative to the US
Reading Time:5 minutes
Why you can trust SCMP
46
China’s Premier Li Keqiang’s recent warning that the economy is facing serious challenges as a result of its Covid-19 controls has raised fears the country may be facing its biggest economic slowdown – or even recession – in decades.
Advertisement
Chinese and international observers have suggested that Beijing may need to rethink its approach towards the West and scale down its global ambitions as it grapples with an increasingly hostile external environment.
They warned that economic headwinds may compromise China’s ability to compete with the United States and put further strains on the Belt and Road Initiative, its transcontinental investment strategy.
Senior Chinese officials, however, have put on a brave face over the past week, trying to play down such concerns while repeating their promises to developing nations.
02:35
Belt and Road Initiative explained
Belt and Road Initiative explained
Foreign Minister Wang Yi used a tour of the South Pacific to describe the region as the “southward extension” of the belt and road strategy and say the island states are “important economic and trade partners” for China.
Advertisement
During phone conversations with leaders from the United Arab Emirates and Zambia on Tuesday, President Xi Jinping also promised to expand cooperation on pandemic control, trade and investment under the umbrella of the initiative, his signature foreign policy project.
Advertisement